Extraordinary General Meeting of the CPC-R Shareholders and Annual General Meeting of the CPC-K Shareholders were held in a joint presence format on 19-20 May 2020 in Moscow.
The meeting of the CPC governing bodies started with a report by Nikolay Gorban, General Director on the company business activities and HSE results. He noted, in particular, that in 2019 the Marine Terminal transshipped 63.2 mln tons of crude oil and loaded 597 tankers.
Last year, there were almost 13 mln man-hours worked without injuries and incidents, including contractors, while MVA-free operation of motor vehicles reached 25.6 mln km. The compliance audit conducted in June 2019 confirmed that CPC had introduced and maintained an Integrated HSE Management System compliant with the international standards.
In 2020, CPC continues to demonstrate stable results. So, in March the Marine Terminal of the Consortium set a new record of monthly shipment – 6.45 mln tons, that is by 0.5 mln tons more than the 2018 December record. From January to March 2020, the operating factor was 99 %, capacity load – 92 %. As of 15 May 2020 since the beginning of the year, the Marine Terminal has already shipped 24.8 mln tons of crude oil loaded into 236 tankers.
The meeting participants heard the financial report, where it was noted that in 2019 CPC, as debt repayment, paid out to its Shareholders more than USD 1.4 billion, and USD 329 million were allocated for these purposes in the first quarter of 2020.
The representatives of the Consortium governing bodies reviewed the issues of implementing the CPC Debottlenecking Program and condition of the pipeline bearing capacity.
New CPC-R and CPC-K Boards of Directors were elected.
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%.