CPC General Director Nikolay Gorban conducted negotiations with Lukoil President Vagit Alekperov at St. Petersburg International Economic Forum SPIEF-17 on June 1, 2017. As a reminder: LUKARCO B.V. is a member of Lukoil’s companies and a CPC Shareholder holding 12.5% of shares.
Deputy General Directors Mikhail Grishankov and Kairgeldy Kabyldin, and CPC Operations Consultant Dennis Fahy participated in the meeting on behalf of CPC.
Nikolay Gorban informed the Caspian Pipeline Consortium Shareholder of the actions completed by CPC as part of the final stage of CPC Expansion Project implementation. He also pointed out that CPC was ready to fully satisfy Lukoil’s requirements to transport crude oil from its new field in the Russian offshore section of the Caspian Sea.
Crude oil from Filanovsky and Korchagin fields has been entering the Tengiz - Novorossiysk pipeline system since October 1, 2016. The Consortium plans to transport 5.4 million tons of crude oil from these fields in 2017.
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%.