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. Last Updated: 07/27/2016

Transneft Asks for an Urgent CPC Meeting

NERUNGRI, Sakha -- The country's pipeline monopoly will ask shareholders of a Chevron-led pipeline to meet again urgently in July to resolve a strategy dispute with Moscow over the country's only private oil link, Transneft chief Semyon Vainshtok said Thursday.

Vainshtok told reporters that he wanted the shareholders to meet again to discuss Transneft's proposals for higher transportation fees, lower borrowing costs and a bond issue.

Most shareholders of the Caspian Pipeline Consortium turned down in early July suggestions by Transneft, which represents Russia in the group pumping oil from Kazakhstan to the Black Sea port of Novorossiisk across Russian territory.

Russia, Kazakhstan and Oman own stakes in the CPC consortium, while private shareholders include BP, Royal Dutch Shell, ExxonMobil, LUKoil, Rosneft as well as Chevron, which holds 15 percent.

Russia, which has a 24 percent stake in the consortium as a host state, has long opposed the consortium's plans to double capacity from the current 700,000 barrels per day as it says the project brings little benefit to the country.

CPC has to pay back $5.5 billion in loans from its private shareholders before sharing profits with its state owners.

Sources have said Transneft wants the group to raise $5 billion via a new bond to cut interest on the old debt.