Annual general meetings of Caspian Pipeline Consortium-R and Caspian Pipeline Consortium-K Shareholders were held on May 29-30.
In his opening address to the Meeting General Director of the Consortium Nikolay Platonov noted that the previous year was rich in events of significance to the Company, primarily within the CPC Expansion Project. He stressed that the KPIs made 2011 a successful year due to "high professionalism of the personnel and conscientious teamwork" and noted significant progress achieved at the main Expansion Projects sites.
The Meeting reviewed principle financial and business aspects of the Company's operations and received a report on the progress of the trunk pipeline throughput expansion.
The 2011 Annual Report and Financial Statements of the Companies were approved. Last year the Companies reported total throughput of 34.2 mln tons and tariff revenue of USD 1.12 bln. Based on the previous financial year's results it was resolved not to pay dividends.
New Board of Directors of CPC-R and CPC-K, CPC-R Audit Commission and CPC-K Internal Audit Service were elected. Ernst&Young was approved as the auditor of the Consortium.
Shareholders instructed Company Management to continue organization of new regional subdivisions of the Company in the Republic of Kalmykia and in Stavropol Krai as additional pipeline system facilities are commissioned in these regions.
CPC Shareholders: Russian Federation (represented by Transneft - 24% and CPC Company - 7%) - 31%; Republic of Kazakhstan (represented by KazMunaiGaz - 19% and Kazakhstan Pipeline Ventures LLC - 1.75%) - 20.75%; Chevron Caspian Pipeline Consortium Company - 15%, LUKARCO B.V. - 12.5%, Mobil Caspian Pipeline Company - 7.5%, Rosneft-Shell Caspian Ventures Limited - 7.5%, BG Overseas Holding Limited - 2%, Eni International N.A. N.V. - 2% and Oryx Caspian Pipeline LLC - 1.75%.
The CPC pipeline system is one of the largest in the CIS energy-sector investment projects with foreign capital. Length of the pipeline connecting oil fields in Western Kazakhstan with the Marine Terminal in Novorossiysk is 1,511 km. CPC Marine Terminal is equipped with Single Point Moorings that allow to load tankers safely at a significant distance offshore, including under adverse weather conditions.
The Expansion Project envisages upgrading of 5 existing pump stations and construction of 10 additional ones (2 in the Republic of Kazakhstan and 8 in the Russian Federation), six crude oil storage tanks (100 thousand m3 each) near Novorossiysk, as well as third single point mooring at the CPC Marine Terminal and replacement of an 88 km pipeline section in Kazakhstan with a larger diameter pipe. Total amount of the Project investments will be US$ 5.4 billion.