CPC guarantees efficient and environmentally safe movement of crude oil

The Project is designed to increase the trunk pipeline capacity

The Social Role of CPC is Highly Appreciated in the Regions

On November 22-24, CPC general director conducted a working trip to the Russian Regions traversed by the consortium’s pipeline route. Nikolay Platonov visited the Republic of Kalmykia and Astrakhan Oblast where he had meetings with the heads of these Federal Regions – Alexey Orlov and Alexander Zhilkin.

The CPC pipeline expansion project includes, as these RF Regions are concerned, upgrading of two pump stations (PS) and construction of four new PSs with related infrastructure facilities. The total amount of investments will exceed RUR 25 billion.

In the course of the company head’s visit to the Republic of Kalmykia, an additional agreement was signed regarding implementation of the CPC-R social program within the framework of the pipeline expansion project in this Republic. Thus, such documents are now signed with all regions where the expansion project will be implemented. In accordance with such agreements, over RUR 1 billion was allocated for social needs in the Russian Regions, including RUR 130 million for those in the Republic of Kalmykia. These funds will mainly be used for construction and reconstruction of children’s and medical facilities and also for provision of equipment required for such facilities. In particular, a project of reconstructing the Children’s Art Center located in Chernozemelsky District of Kalmykia was approved during the meeting between Nikolay Platonov and Alexey Orlov. After that, a minibus designed for transfer of children was presented to the Republican Children’s Art Center, the largest in Kalmykia center of ad hoc children education, as a gift from CPC.

Nikolay Platonov also took part in the ceremony of commissioning the Eastern Building of the Republican Children’s Hospital, the equipment for which was procured at the expense of CPC.

The Head of Kalmykia noted the importance of the consortium’s business for the economy and social life in the Republic. The diversified cooperation between CPC and Republic includes various contributions, new jobs for local residents and humanitarian projects of the company. The consortium allocated to Kalmykia over RUR 160 million just for the charity purposes during the construction and operations period. The consortium has long shown itself as a company of high social responsibility and it sticks to such principles without fail. Alexey Orlov stressed that the Republican Government will in its turn provide to CPC all possible support for implementation of the expansion project.

In the course of his visiting Astrakhan Oblast, CPC general director discussed various aspects of the current cooperation between CPC and Oblast with the head of this region. On invitation by Nikolay Platonov, Governor Alexander Zhilkin visited Astrakhan PS where they together reviewed the current PS operations, plans of upgrading the station under the expansion project, and also had a meeting with the work team.

The region head noted a high industrial culture of CPC, and stressed the importance of the pipeline as a major transport artery traversing the regions and contributing to development of oil fields located in the region. Positive effects of the consortium business extend to quite various spheres of regional economy and social life, including involvement of the local labor resources. The Oblast Administration highly appreciates the constructive interrelations that have evolved with the company management.

Alexander Zhilkin specially underlined that the social policy of CPC served a good example for other companies operating in Astrakhan Oblast.

The length of the pipeline connecting oil fields in Western Kazakhstan with the Marine Terminal in Novorossiysk is 1,511 km. CPC’s Marine Terminal is equipped with single point moorings that allow to load tankers safely at a significant distance offshore, including in bad weather conditions.

The CPC project was originally developed with a view to future increase of its initial capacity by 2.5 times up to 67 MTA (76 MTA with DRA).

The Expansion Project includes upgrading of the existing pump stations and building 10 additional ones (2 in Kazakhstan and 8 in Russia), six oil storage tanks near Novorossiysk and a third single point mooring at the CPC Marine Terminal, and also the replacement of an 88 km pipeline section in Kazakhstan with a larger diameter pipe. The total amount of investment into the project will equal USD 5.4 bn. The Expansion is planned to be completed in 2015.

CPC expansion is a prerequisite condition of full realization of the pipeline project’s economy potential in the interests of Russia, Kazakhstan and shareholder companies.