Oil major BP is against expanding the Caspian pipeline until more funding is secured
Transneft president Nikolai Tokarev told the reporters that BP suddenly disagreed to expand the Caspian pipeline which pumps Kazakh crude to Russia
Over the summer the partners in the Caspian Pipeline Consortium (CPC) - Russia, Kazakhstan, BP and others - finally agreed to double the capacity of the pipeline to 60mn tonnes per year (1.2mn bpd), following months of delays over funding issues. CPC has been shipping oil since 2001 and pumps up to 750,000bpd from Kazakh oilfields to Novorossiisk, Russia’s largest Black Sea port, for re-export to the Mediterranean.
But unexpectedly oil major BP finds the decision to expand the Caspian pipeline premature.
“We all decided, we all agreed (to expand the pipeline) and then suddenly BP says ‘I don’t agree. I think we need to get more money’,” Transneft president Nikolai Tokarev said at the Reuters Russia Investment Summit.