US treasury allows oil services for CPC and Tengizchevroil projects
The US Treasury’s Office of Foreign Assets Control (OFAC) has issued authorization for the provision of oil services within the Caspian Pipeline Consortium (CPC) and Tengizchevroil projects. This information is contained in a general license, Kazinform News Agency correspondent reports.
The ban on providing oil services was imposed on January 10, 2025, under a US presidential executive order. The document restricted the export and supply from the United States or through US persons of any oil services to Russian companies.
"All transactions prohibited by the determination of January 10, 2025 made pursuant to section 1(a)(ii) of Executive Order 14071 ('Prohibition on Petroleum Services') that are related to the Caspian Pipeline Consortium or Tengizchevroil projects are authorized," states the general license issued by the OFAC.
The CPC pipeline system is one of the largest investment projects in the energy sector with foreign capital participation in the CIS region. The Tengiz-Novorossiysk pipeline stretches 1,511 kilometers. It accounts for more than 80% of the oil volumes transported via pipeline from Kazakhstan.
Tengizchevroil is Kazakhstan's largest oil and gas project, with participation from Chevron, ExxonMobil, LUKOIL, and KazMunayGas. It operates Kazakhstan's largest oil field, Tengiz. In 2024, the company produced 27.8 million tons of oil. Production is expected to increase to 34.7 million tons in 2025, connected to a major expansion project worth approximately $49 billion.
Earlier, Kazinform News Agency reported that Kazakhstan’s major oil refineries increased their output to 6.092 million tons in January-April 2025, up 10.8% year-over-year.