CSA Canadian Securities Administrators : The transit of Russian crude oil to China via Kazakhstan has not been suspended

January 23, 2020

The transit of Russian crude oil to China through the system of trunk oil pipelines of 'KazTransOil' JSC is not suspended and is carried out in full compliance with contractual obligations and quality in accordance with GOST (quality standard).

On January 22, 2020, at 14:10 Moscow time the acceptance of crude oil of 'CNPC-Aktobemunaigas' JSC into the system of trunk oil pipelines partially resumed. Content of organochlorine compounds in the delivered oil does not exceed allowed limits.

Recall that on January 16, 2020, 'KazTransOil' JSC at the result of crude oil quality tests during crude oil acceptance process into the trunk pipeline system from 'CNPC-Aktobemunauygas' JSC detected an excess of organochlorine compounds in the fractions boiling up below 204°С. 'KazTransOil' JSC stopped the acceptance of crude oil from 'CNPC-Aktobemunaygas' JSC on the same day until the issue of delivered crude oil quality is resolved.

The Ministry of Energy of the Republic of Kazakhstan, given the decline in volume of oil delivery for transportation through trunk oil pipeline's system, adjusted the schedule for oil transportation to the refineries of the Republic of Kazakhstan and for export for January of 2020. In particular, the scheduled volume of export for Kazakhstani producers in the direction of China was reduced. Exempt volume of crude oil was redirected to supply PKOP (Shymkent Refinery). The schedule of crude oil supply to Pavlodar Petrochemical Plant has also been changed.

For your reference:
KazTransOil JSC is a National Main Oil Pipeline Operator of the Republic of Kazakhstan. The Company is a part of NC 'KazMunaiGas' JSC Group. The Company owns a diversified network of main oil pipelines with total length of 5.4 thousand km. Production facilities of 'KazTransOil' JSC are located in Shymkent, Karaganda, Pavlodar, Turkestan, North Kazakhstan, Atyrau, Mangistau, West Kazakhstan, Kyzylorda, Almaty, Aktobe regions of the Republic of Kazakhstan. The Company provides oil transportation to Kazakhstani oil refineries and for export in 5 directions: by Atyrau-Samara and Kazakhstan-China pipelines, transhipment to tankers in the port of Aktau, transhipment to rail tanks, transhipment to the CPC system.

Department of Public Relations and
Internal Communications
'KazTransOil' JSC

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