On May 16, 2018, in Astana, Nikolay Gorban, CPC General Director, and Dimash Dosanov, KTO General Director (Management Board Chairman) signed a contract for maintenance, repair and emergency response services for CPC-K oil pipeline facilities in Kazakhstan.As a reminder, last year, the CPC Tender Board pronounced KazTransOil the winner of a tender to select an operator for those services. The document is signed for 5 years - from 2018 through 2023 - with an option for renewal.
About 250 new jobs will be created under the project in the Atyrau Region, for pipeliners, technicians, mechanics, electricians, etc.
- The maintenance contract we have signed today plays an important role in our companies’ successful business. We have outlined clear prospects for further sustainable joint development based on common values – work safety and social protection of personnel, preserving the nature for future generations, and committing to making life better for local people in areas where are companies are present, noted CPC General Director Nikolay Gorban in his speech.
- For the first time in KazTransOil’s entire operational history, our company will be providing maintenance services to the CPC oil pipeline, stated KTO General Director Dimash Dosanov. - It is a great honor for us to take part in such a large international project as the CPC pipeline. In spite of being in similar lines of business, KTO and CPC are not competitors, and the contract signed today gives a start to a long and mutually-beneficial relationship.
The parties have developed a road map to ensure a reliable and safe transition of the CPC-K maintenance contractor’s duties in Kazakhstan to KazTransOil.
The international consortium and KazTransOil have been cooperating effectively since the start of CPC’s operations in 2001. Thus, to provide Shippers with access to the CPC crude pipeline, KazTransOil put into operation some additional facilities at its Atyrau Pump Station that are used to deliver raw hydrocarbons transported by the Uzen-Atyrau, Kenkiyak-Atyrau, Martyshy-Atyrau crude pipelines and also transported by railroad, into the CPC System.
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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 in 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%.