On September 29-30, Extraordinary General Shareholders Meetings of CPC-R and CPC-K along with the Meeting of the Caspian Pipeline Consortium-R Board of Directors were held in Almaty.
In the course of the Board of Directors Meeting, the Shareholders were advised of Expansion Project progress per Schedule 15. As noted, completion of the construction is expected by July 1st, 2016. Demobilization completion is anticipated by December, i.e. demobilization of contractors, dismantling of auxiliary facilities, and optimization of the Consortium staff.
The Shareholders highly appreciated the organization of ongoing work, zero incident rate, and noted again that strict compliance with safety procedures would be essential in the stage of construction completion.
Consortium Management also informed the Managing Bodies about closing out Shareholders audit findings.
New members of the Board of Directors of each company were elected in the course of the Extraordinary General Shareholders Meetings of CPC-R and CPC-K.
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%.