A meeting of the Working Group was held on 25 August 2016 at the CPC Marine Terminal, Yuzhnaya Ozereevka village, Novorossiysk to discuss the issues related to the CPC Expansion Project and some social programs under implementation in the region with the Consortium support.
The meeting was attended by CPC General Director Nikolay Gorban, Deputy General Director, RF Government Relations Mikhail Grishankov and other representatives of the Consortium. The Novorossiysk City Administration was represented at the meeting by Acting Head of the City Igor Dyachenko and Administration officials responsible for the charity programs carried out jointly with the Consortium.
Discussions were held in the course of the meeting regarding the completion of the construction of the last three out of ten tanks of the MT Tank Farm under Expansion Phase III. Commissioning of new tanks will bring the CPC MT crude oil transshipment volume up to the planned 67 MTA, with DRA – up to 76 MTA.
Nikolay Gorban noted the Consortium focus on design reliability, industrial, physical and environmental safety of the MT facilities. At the same time, being a good corporate citizen, CPC strives for an active participation in the implementation of social projects within Novorossiysk. The total amount of financial aid allocated by the Consortium for these projects amounted to RUR 750 mln.
The City Head thanked the Company for its activities in Novorossiysk which created new jobs in the region and replenished the local budget through taxes. He also noted a significant contribution of the Consortium to the support of the city social sphere development, including construction of new and refurbishment of current facilities, procurement of vehicles and expensive state-of-the-art process equipment in the interests of local population and, primarily, young residents.
For reference.
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%.