On September 26, 2018, CPC General Director Nikolay Gorban and KazTransOil Deputy General Director Alexey Pirogov met in Almaty. The parties discussed the Companies’ cooperation under the contract for maintenance, repair and emergency response at CPC-K crude pipeline system facilities in the Republic of Kazakhstan signed in May 2018. We would like to remind you that under this contract KazTransOil units started performing the aforesaid functions on July 1, 2018.
The Contract between CPC and KTO is signed for five years - from 2018 through 2023 with potential extension. The Contract value amounts to approximately KZT 23bln (about $70 mln).
The international consortium and KazTransOil have been efficiently cooperating since the commencement of CPC operations in 2001. For providing access to the CPC crude pipeline for shippers KazTransOil commissioned at its Atyrau pump station additional facilities for transshipment of hydrocarbons transported by the Uzen-Atyrau, Kenkiyak-Atyrau, Martyshy-Atyrau crude pipelines and also railroad to the CPC system.
For reference.
CPC pipeline system is one of the largest investment projects in the energy industry with participation of foreign capital on the CIS territory. The length of the pipeline connecting the oil fields in Western Kazakhstan with the Marine Terminal near Novorossiysk is 1,511 km. CPC Marine Terminal is equipped with single point moorings which allow for safe tanker lifting at a considerable distance from the shore, also when the weather conditions are unfavorable.
The Expansion Project includes rehabilitation of 5 existing and construction of 10 additional pump stations (2 in the Republic of Kazakhstan and 8 in the Russian Federation), six new storage tanks (100,000 cu.m each) in addition to the existing four near Novorossiysk and a third SPM at the CPC Marine Terminal, and also the replacement of an 88 km pipeline section in Kazakhstan with a larger diameter pipe. The total amount of the Project investments will be US$ 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%.