CPC-R Board of Directors meeting, as well as CPC-R and CPC-K Extraordinary General Shareholders Meetings were held in Moscow on February 25-26 in Moscow.
Both companies’ Boards of Directors were re-elected during the EGMs. A report on the current state of CPC business and occupational health, safety and environment was heard. It was approved to execute an Amendment to the Service Agreement between CPC-R and CPC-K on rendering administrative, management and other services related to the Expansion Project management in the Republic of Kazakhstan.
CPC management bodies have discussed current issues related to the Expansion Project execution. It was decided to update the Expansion Project commissioning schedule for phase 1 and phase 2 facilities in the entire pipeline territory. The schedule will be agreed and approved at the CPC management bodies meeting in May. The commissioning schedule will be approved taking into account the requirement of maxumum compliance with the hydraulic model of the pipeline system capacity expansion.
CPC pipeline system is one of the largest investment projects in the energy industry with participation of foreign capital on the CIS territory. The length of the pipeline connecting the oil fields in Western Kazakhstan with the Marine Terminal near Novorossiysk is 1,511 km. CPC Marine Terminal is equipped with single point moorings which allow for safe tanker lifting at a considerable distance from the shore, also when the weather conditions are unfavorable.
The Expansion Project includes rehabilitation of 5 existing and construction of 10 additional pump stations (2 in the Republic of Kazakhstan and 8 in the Russian Federation), six new storage tanks (100,000 each) in addition to the existing four near Novorossiysk and a third SPM 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 the Project investments will be US$ 5.4 billion.
CPC Shareholders: Russian Federation (represented by Transneft – 24% and CPC Company – 7 %) – 31%; Republic of Kazakhstan (represented by KazMunayGaz – 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% и Oryx Caspian Pipeline LLC – 1.75%