On 22nd September Caspian Pipeline Consortium and the Republic of Kalmykia Government executed a Supplementary Agreement to the Cooperation Agreement determining the interaction between the Company and the Region since 10 March 2009. The document was signed by CPC General Director Nikolay Brunich and the Republic’s Head Alexey Orlov.
The newly signed Agreement provides for the Consortium’s allocation of additional funds of 145 million Rubles which will be used for funding social projects implemented within the Region under the Expansion Project.
During the period of cooperation between the Republic of CPC-R, from 1998 to 2014, the Consortium allocated over 350 million Rubles towards the social needs. The funds were used to support the educational, health care, culture and sports establishments and also as aid to handicapped people, veterans and orphaned children. In 2015 the Consortium will provide 43.5 million Rubles to implementation of social projects under its regular charity program.
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%.