CPC-R and CPC-K General Annual Shareholders Meetings were held in Gelendzhik (Krasnodar Krai) on May 16-18, 2017.
The Shareholders elected new memberships of the Boards of Directors of both companies and CPC-R Audit Commission. Ernst and Young Company was approved as the Consortium’s auditor.
General Director reported on the Consortium’s operations and business activities, 2016 company performance results were summed up, and actions were discussed in respect to completion of the CPC Pipeline Expansion Project.
Besides, the Shareholders were presented information on implementation of CPC infrastructural and social programs under the Consortium’s Expansion Project. The total 2016 charity expenditures of CPC-R amounted to RUR 434.6 million, and those of CPC-K amounted to KZT 1,010.75 million. These funds were allocated to various projects in the sphere of education, healthcare, culture, environment, provision of municipal transportation motor vehicles to the regions, social support to needy people and support to countryside communities, and children programs were also implemented.
General Director Nikolay Gorban informed the Shareholders that the total volume of crude oil shipped from the CPC Marine Terminal in 2016 was 44.3 MMT (+3.5% vs 2015), including 40.9 MMT of Kazakhstan origin crude oil (+7.6 % vs 2015) and 3.4 MMT of Russia origin crude oil (-29.2 % vs 2015).
CPC IFRS revenues amounted to USD 1.6 billion, which is higher by 7 % than those of 2015 were (USD 1.5).
In 2016, the Project of Tengiz-Novorossiysk Pipeline Expansion included completion of the work scope on upgrading and expansion of the CPC Marine Terminal Tank Farm. Its tankage reached 1 million tons. A-PS-4 pump station was commissioned, A-PS-4A pump station was linefilled with oil and its integrated testing began, while A-PS-5A and PS-8 were prepared for linefilling with oil.
PS-5 reached the final stage of start-up work prior to its linefilling with oil.
Besides, upon its drastic upgrade, the Marine Terminal Operations Control Center (OCC) was put into operation with its new SCADA – Control and Data Acquisition System that provides for real-time control of all stages of crude oil movement from Tengiz 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% of and CPC Company – 7%) – 31%; Republic of Kazakhstan (represented by KazMunayGaz – 19% of 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% of and Oryx Caspian Pipeline LLC – 1.75%.