The Caspian Pipeline Consortium (CPC) is proceeding with the replacement of two outdated tanker mooring buoys at its key Black Sea export terminal, a project now scheduled for completion in 2026, which is four years behind the original 2022 retirement plan.

Project Status and Timeline

The construction of the two new Single Point Mooring (SPM) systems is nearing completion at the Drydocks World yard in Dubai and is slated to be finished in December of this year. The operator plans to install these replacement units in September of the following year. The new buoys are expected to enhance the terminal's reliability, which is critical as throughput has grown considerably in 2024 due to a major increase in oil production at Kazakhstan's largest oilfield, Tengiz.

Background and Operational Context

The Caspian Pipeline is a vital infrastructure, handling over 80% of Kazakhstan's oil exports, primarily from the Tengiz, Kashagan, and Karachaganak fields. The pipeline terminates near the Russian Black Sea port of Novorossiysk, where a storage terminal and three offshore buoys are used to load oil onto tankers for global markets. The two older buoys, installed in 2001, were suspended by Russia's transport watchdog, Rostransnadzor, in March on safety grounds. This suspension forced the operator to temporarily restrict tanker movements and route all loadings through a third, more modern buoy installed in 2014. Although the suspension was lifted several days later after a legal challenge, an oil spill occurred during a loading operation using one of the older buoys at the end of August.

Stakeholder Involvement and Delays

In May 2024, KazMunayGaz, Kazakhstan's state-run oil and gas company holding a stake of just under 21% in the pipeline, signed a cooperation agreement with Dutch engineering firm Bluewater Energy Services regarding the replacement of the two older buoys. Bluewater is the manufacturer of the third SPM. Initial plans involved KazMunayGaz hoping Bluewater would collaborate with Kazakh yards to build one SPM, while Russia, which holds a 31% stake, planned to engage a yard in the Kaliningrad region for the second. However, a CPC spokesperson declined to comment on Bluewater or Russian involvement in the construction, and the buoys are being built in Dubai.

Recent Developments and Operational Challenges

In preparation for the new SPMs, the consortium installed 12 caisson anchors, manufactured in Dubai, on the seabed near the terminal in September. Operationally, CPC is targeting a loading rate increase to 1.7 million barrels per day in December, up from a planned 1.45 million bpd in November, driven by ramped-up production at Tengiz after maintenance. The terminal faced a recent disruption when operations at the offshore buoys were halted due to Ukrainian drone strikes targeting Novorossiysk, with one hitting an office building at the CPC terminal; however, tanker loadings resumed on November 26.