Nikolay Gorban, CPC General Director and Alik Aidarbayev, KazMunaiGaz Chairman of the Board met on December 13, 2018 in Astana. CPC General Director congratulated KMG CEO on his appointment to the position that became effective on November 20, 2018. Then, the parties discussed a wide range of issues related to cooperation of the companies.
For reference: KazMunaiGaz is one of the largest shareholders in CPC – the National Company represents in the CPC Project the Republic of Kazakhstan interest of 19%. On July 1, 2018 KazTransOil, a KMG subsidiary, commenced performance under the contract for maintenance, repair and emergency response at the CPC-K pipeline system facilities in the Republic of Kazakhstan. The Contract between CPC and KTO was signed fin may 2018 for the five years from 2018 to 2023. The Contract value is approximately KZT 23 bln (about USD 70 mln).
KazMunaiGaz produces 28% of the total oil and gas condensate production in Kazakhstan and 16% of natural gas and APG, ensures 65% of oil pipeline transport and 77% of tanker transport from Aktau, as well as 95% of natural gas pipeline transport. It processes 82% of oil produced in Kazakhstan and holds a 17% share of the petroleum products retail market. KazMunaiGaz employs around 90 thousand people.
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%.