CPC guarantees efficient and environmentally safe movement of crude oil

The Project is designed to increase the trunk pipeline capacity

Head of CPC won a state award of the Republic of Kazakhstan

20121213-1.jpg20181213-2.jpgNikolay Gorban, General Director of CPC, won the Order of Friendship (Dostyk), a state award of Kazakhstan. The Decree to award the head of CPC was signed by Nursultan Nazarbayev, President of the Republic of Kazakhstan. The award ceremony was held on 13 December 2018 in the RK Ministry of Energy, Astana.

Presenting the award the Minister of Energy Kanat Bozumbayev marked Nikolay Gorban’s substantial contribution to successful completion of the CPC Pipeline System Capacity Expansion Project. In the Republic of Kazakhstan two new pump stations were put into operation, two existing pump stations were renovated and the pipeline itself was upgraded as part of the above large-scale project.

Successful completion of the Expansion Project allowed to increase throughput capacity of the Tengiz-Novorossiysk crude oil pipeline up to 67 mln tons of crude oil per annum, thus not only ensuring an increase in tax payments to the RK budget, but also contributed to the CPC’s implementation of large-scale social programs as well as new job creation.

Thousands of jobs were created for the implementation of the CPC Expansion Project. The above process had a multiplier effect with creation of one job in oil pumping industry leading to creation of five or six jobs in related industries (transport, construction, energy), as well as in the services sector.

In total the amount allocated for social needs under the Expansion Project in Kazakhstan exceeded KZT 3.7 bln. The above amount was spent for construction and refurbishment of schools, kindergartens, sports facilities and modern roads.

The CPC Expansion Project opened new export possibilities for oil production sector of Kazakhstan. In 2017, CPC moved a total of approximately 50 mln tons of Kazakhstan crude oil, almost 71% of the total export volume of the Republic of Kazakhstan.

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 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%.