CPC General Director Nikolai Brunich made a business trip to Novorossiysk on April 9-11, visiting Expansion Project sites.
The consortium’s CEO inspected the MT Tank Farm in Yuzhnaya Ozereevka, where the construction of another six 100,000 cubic meter tanks is in progress in addition to the existing four, and held an extended meeting with members of a working group managing daily construction activities at the Tank Farm, the contractor and the project management company. During the meeting there was a report presented on the outcome of the working group’s audit. Key work areas and directions were identified, completion dates defined, and an integrated schedule is going to be developed and approved shortly. The plan is to complete the construction of Tank Farm Phase 1, including three tanks and associated piping and utilities, by the end of this year.
Seeing that the expanded facilities are in the process of being constructed in parallel with base business operations, Nikolai Brunich stressed the need for work safety and environmental safety compliance in the work process.
He then visited a new pump station site under construction in Krymsk (PS-8). During a business meeting he reviewed the current work status, highlighted outstanding issues and stressed the need to mobilize whatever resources available in order to meet the approved schedule.
While in Novorossiysk, Nikolai Brunich, accompanied by the city mayor Vladimir Sinyagovskiy, took part in a formal opening ceremony of the spring season of the 24th Russian Soccer Championship 2013-2014 among second division teams, which included a formal handover of a bus purchased by CPC for the Chernomorets soccer club children and youth sport school. Presented as a gift under CPC’s community related programs, the bus made by King Long Buses has independent suspension, 47 comfortable seats with safety belts and individual passenger-driver communications, air conditioning and TV screens.
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 cu.m 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%