CPC guarantees efficient and environmentally safe movement of crude oil

The Project is designed to increase the trunk pipeline capacity

CPC CEO visited CPC Western Region

20180809-1-3.jpg20180809-1-1.jpg20180809-1-2.jpgOn August 8-9, 2018, CPC General Director Nikolay Gorban made a business trip to Western Region to inspect pipeline system facilities in Stavropol Krai and Krasnodar Krai. CPC General Director visited PS-4, PS-5, Kropotkin PS, PS-7 and PS-8. The consortium head examined PS equipment and conducted unscheduled inspections of CPC/contractors’ readiness for emergency response both at the pipeline and pump stations.

Since January 2018, the pipeline within the responsibility of CPC Western Region has moved 35.6 million tons of crude oil.

Western Region reported of total 19.2 m man-hours worked (out of them 1.4 m man-hours in 2018) without days-away-from-work-cases due to injuries or incidents and also 38.6 m kilometers run without recorded MVAs.

Please also note that in 2017 the Western Region team was recognized as the best in the CPC pipeline system in terms of efficiency. At the same time, this evaluation also covered the reliability of equipment, compliance with occupational and fire safety, the efficiency of management system and other factors.

In 2017, CPC commissioned PS-5 in Stavropol Krai and PS-8 in Krasnodar Krai enabling to increase the crude volumes transported in Western Region by 25%.

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%.