Negotiations were held between CPC General Director Nikolay Gorban and German Gref, President and Board Chairman of Sberbank. The issues related to current corporate relations were discussed at the meeting, high level of the achievements of collaborative work was noted.
German Gref pointed out that Caspian Pipeline Consortium was one of the significant clients of Sberbank and expressed his hope for further development of cooperation. Nikolay Gorban informed Sberbank Head of CPC current operation business and activities accomplished by CPC at the final stage of the Consortium Expansion Project.
CPC Head emphasized that the increase of volumes transported by the Tengiz - Novorossiysk crude pipeline had favorable impact on the Consortium’s revenues. According to preliminary assessment, the Consortium’s revenues will amount to about $2 B at the end of 2017. It was also noted that in accordance with CPC Treasury Policy, 50% of the Consortium’s cash is placed in Russia.
For reference.
CPC pipeline system is one of the largest investment projects in the energy industry with participation of foreign capital on the CIS territory. The length of the pipeline connecting the oil fields in Western Kazakhstan with the Marine Terminal near Novorossiysk is 1,511 km. CPC Marine Terminal is equipped with single point moorings which allow for safe tanker lifting at a considerable distance from the shore, also when the weather conditions are unfavorable.
The Expansion Project includes rehabilitation of 5 existing and construction of 10 additional pump stations (2 in the Republic of Kazakhstan and 8 in the Russian Federation), six new storage tanks (100,000 cu.m each) in addition to the existing four near Novorossiysk and a third SPM at the CPC Marine Terminal, and also the replacement of an 88 km pipeline section in Kazakhstan with a larger diameter pipe. The total amount of the Project investments will be US$ 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%.