CPC General Director Completed a Working Visit to Stavropol Krai

On 14 -15 July 2011 the CPC General Director Nikolay Platonov made a working visit to Stavropol krai and held a meeting with the Stavropol krai governor Valery Gaevsky.

The discussions focused on the prospects of Expansion construction for the CPC Pipeline System of two new oil pump stations in Ipatovsky and Isobilnensky districts of the krai. Nikolay Platonov informed that the total amount of corporate investments in the construction of the facilities in Stavropol krai may reach 10 billion rubles. About 500 jobs will be created for local residents for the period of construction, and later on for operation of the built stations 60 vacancies will be opened for a well-paid full-time employment. The completed CPC facilities will be registered at their locations, thus increasing the taxable base for the krai and district budgets.

Moreover, the CPC Expansion will involve implementation of social infrastructural projects in the areas of pipeline system facilities construction. It is intended to build health care and pre-school children’s institutions with the outlined budget of at least 130 million rubles. Meanwhile, CPC will continue the aid under its traditional charity programs meant to support veterans, disabled persons, orphans and low-income families and to strengthen the material/technical base of the medical, cultural and educational institutions in all six districts crossed by the CPC pipeline route.

During the meeting, the governor of Stavropol krai emphasized the importance of tax revenue growth from CPC. Valery Gaevsky said that the consortium will find all necessary administrative and legal support on both krai and district levels, required to proceed with the construction, including filing documents for land plots to accommodate new CPC facilities and infrastructure.

The expansion project envisages increasing the throughput capacity of the CPC pipeline system to 67 million tons of oil per annum. The project includes the upgrade of existing and the construction of 10 new oil pumping stations (2 in the Republic of Kazakhstan, 8 in the Russian Federation), six oil tanks in the vicinity of Novorossiysk and a third single-point mooring at the CPC Marine Terminal, as well as replacement of the 88 km section of the pipeline in Kazakhstan by a larger diameter pipe.