The Treasury Department has issued a new license easing restrictions on the Caspian Pipeline Consortium
The US government has allowed American and international companies to resume oil-related work involving a major Russia-linked project to deliver Caspian oil to the global market. The license, lifting restrictions on the Caspian Pipeline Consortium (CPC) and the Kazakh company Tengizchevroil (TCO), was issued by the Treasury Department on Thursday.
The CPC includes major US oil companies such as Chevron and ExxonMobil among its stakeholders and primarily facilitates the export of Kazakh oil through Russian territory and its shipment internationally.
The new General License No. 124 permits all transactions that were blocked under a January 10 decision which prohibited certain petroleum services involving Russia-related energy infrastructure.
CPC operates a major pipeline that transports oil from western Kazakhstan to the Black Sea coast of Russia, from where it is shipped globally by tanker. The 1,511-kilometer pipeline is one of the most important export routes for Kazakh oil, handling over 80% of the country’s crude exports.
The pipeline is jointly owned by multiple companies and governments. Russia holds a 24% stake through the state-owned operator Transneft. Other major shareholders include Chevron, ExxonMobil, Russia’s Lukoil and Kazakhstan’s national oil company KazMunayGas. Several smaller international firms also own shares.
Tengizchevroil is a joint venture that runs the massive Tengiz oil field in Kazakhstan. It was formed in 1993 and is owned by Chevron (50%), ExxonMobil (25%), KazMunayGas (20%), and Lukoil (5%).
The earlier sanctions were imposed under Executive Order 14071, which targets services related to Russian energy projects. However, US authorities have made exceptions for projects that are considered critical to global energy markets or involve non-Russian stakeholders.
General License No. 121, issued in January, had already temporarily allowed some services for CPC and TCO. That license remains valid until June 28, 2025, but the new license appears to clarify and reaffirm that companies may continue their involvement in these projects without penalty until then.
According to the Treasury, the license covers activities like drilling, refining, transportation, and marketing of oil – provided they are connected to CPC or Tengizchevroil.
Earlier this year, CPC was forced to temporarily halt operations following two attacks by Ukrainian drones that damaged oil transfer stations linked to the pipeline network on Russian territory. The attacks came after Russian President Vladimir Putin and US President Donald Trump approved a partial ceasefire, under which both Moscow and Kiev committed to refraining from strikes on energy infrastructure.
