The Extraordinary General Shareholders’ Meetings of JSC Caspian Pipeline Consortium-R and JSC Caspian Pipeline Consortium-K and the meeting of the Board of Directors of the JSC Caspian Pipeline Consortium-R were held on 27-28 September in Kazakhstan.
During the meetings the participants discussed the Expansion Project implementation and business issues. Special attention was paid to the operational security of construction work. The Shareholders highly appreciated the achieved results in that area citing high efficiency of security arrangements at operation sites and, as a consequence, absence of major incidents.
The Long-Term Strategy of CPC Property Development, Base Business Construction Structure, proposals re organizational and staff structure of the Security Services were discussed.
Moreover, the CPC Management reported to the CPC governing bodies of implementation of findings made by the Shareholders Audits.
The Shareholders Meetings reelected members of the CPC-R Board of Directors and Audit Commission and members of the CPC-K Board of Directors and Internal Audit Service.
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%.