Chevron-led Russia venture faces challenges: report
An energy development consortium led by U.S. oil producer Chevron Corp. in Kazakhstan is facing challenges from the Russian government over a pipeline that runs through Russian territory, the Wall Street Journal reported.
The $6 billion project is attempting to double capacity at the Caspian Pipeline Consortium, a pipeline which runs from Kazakhstan to the Black Sea, the paper said.
But the Russian government, which holds a 24 percent stake in the venture through its state-owned pipeline monopoly OAO Transneft, has blocked the expansion, arguing that Russia should receive more revenue, the paper said.
A spokesman for Chevron could not be reached for comment.
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