Caspian Pipeline Consortium-R Board of Directors and Caspian Pipeline Consortium-K Extraordinary Shareholders Meetings were held on February 27-28, 2018 in Moscow.
The meetings received reports on the Company’s business status and main HSE results.
Participant reviewed the results of Expansion Project implementation and integration of the new oil transport facilities in the pipeline system. In December 2017, the Tengiz - Novorossiysk Pipeline reached its design capacity of 67 MTPA.
It was also noted that total cost of the CPC Expansion Project was lower than the initial plan. Expansion of the pipeline system and its throughput increase have a positive impact on the corporate financials. According to the current business model, the Consortium will repay its Shareholder debt in total by the end of 2020 when it will commence paying dividends.
For reference:
The CPC pipeline system is one of the largest investment projects with foreign capital in the energy sector in the CIS. The length of Tengiz-Novorossiysk pipeline is 1,511 km; more than two thirds of all export crude oil from Kazakhstan and crude oil from the Russian fields, including those in the Caspian Region, are transported by this route. CPC Marine Terminal is equipped with three Single Point Moorings (SPM) that allow to load tankers safely at a significant distance offshore, also amid poor weather conditions.
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% and Oryx Caspian Pipeline LLC – 1.75%.