CPC guarantees efficient and environmentally safe movement of crude oil

The Project is designed to increase the trunk pipeline capacity

CPC General Director Had a Meeting with Acting Mayor of Novorossiysk

On September 30, 2016, Nikolai Gorban, CPC General Director met with Igor Dyachenko, Acting Mayor of Novorossiysk, to discuss cooperation between the Consortium and Novorossiysk. In 20106 CPC purchased, as a part of its charitable aid program, 10 comfortable low-floor air-conditioned MAZ buses worth approximately RUR 70 million.

Additionally, plans are in place to have City Policlinic №2 and the Kuban Culture Center renovated in 20106-2017 at the expense of CPC. CPC will also pay for the construction of Nadezhda sports/recreation center, the children’s tennis school and Pobeda Archery Center.

During past 13 years CPC donated over half billion rubles as a social support to Novorossiysk.

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%.