CPC guarantees efficient and environmentally safe movement of crude oil

The Project is designed to increase the trunk pipeline capacity

Statement of JSC CPC-R press office in connection with incorrect information distribution by Thomson Reuters Agency

On June 2, 2020, the Reuters international agency published a message in the news feed as follows: “CPC reduced the June export plan of CPC Blend oil by 6% to 4.29 million tons - updated schedule - Reuters News, 02-Jun-2020 14:44:18”.

Despite the knowledge of the oil market, pipeline transportation issues and in particular regarding the CPC system, the journalists of the media outlet indicate that it was the Consortium that “reduced the export plan”, and earlier “delayed the release of the schedule” etc., thus shape the opinion that CPC itself may affect this process.

We consider it necessary to openly remind reporters of the agency that Caspian Pipeline Consortium (CPC) do not independently form a schedule for oil transportation for export from Republic of Kazakhstan through the Tengiz-Novorossiysk pipeline, as well as they do not “release” the schedule and do not affect the admission of freight forwarders to the CPC main pipeline system.

The schedule oil delivery from the Republic of Kazakhstan for export via the CPC main pipeline system is formed, approved and brought to the information of CPC by the Ministry of Energy in RoK.

The schedule contains information on export oil shares designated for each freight forwarder. Based on the designated shares, requests from freight forwarder and available capacity of the pipeline, CPC resolves information regarding oil transportation of freight forwarders via main pipeline system.

In this regard, the correct wording would be: “CPC freight forwarders reduce / increase pumping through the Tengiz-Novorossiysk oil pipeline system”.

We also draw attention to other correspondents and journalists of the Russian and Kazakhstan media covering the activities of the fuel and energy complex.

Given the above, JSC Caspian Pipeline Consortium-R imposes an embargo on the provision of any information regarding Company’s activity to Thomson Reuters agency.

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%.