On April 4 CPC General Director Nikolai Platonov met with Alexei Mayorov, a Federation Council Member from the Republic of Kalmykia, and Sergey Bazyrov, Head of the Iki-Burulskiy District Administration. The meeting discussed issues around cooperation between Kalmykia and CPC in connection with the start in 2011 of work to increase the capacity of the CPC oil pipeline system up to 67 MTA. In particular, the discussion included issues related to pump station upgrades and construction in Kalmykia, construction of external power supply facilities, and also implementation of community-related programs by CPC under the Expansion Project.
The total expected amount to be invested by CPC into building and upgrading the facilities in Kalmykia will be about 13 billion rubles. This includes the construction of external power supply facilities for the company under contract by MRSK Yuga for over RUR2.8 bn. There will be one pump station, Komsomolsk, upgraded in the Chernozemelskiy District and two new pump stations build in the republic in the Chernozemelskiy and Iki-Burulskiy Districts.
The project also provides for the construction and refurbishment community-related facilities related to education and healthcare in the pipeline host regions. CPC plans to allocate RUR 130 mln for those purposes. At the same time the company will continue financing its traditional charity programs for war veterans, senior citizens and orphans, and also concert competitions for gifted children.
The CPC pipeline system is one of the largest investment projects with foreign capital in the CIS. The length of the pipeline connecting oil fields in Western Kazakhstan with the Marine Terminal in Novorossiysk is 1,511 km. CPC's Marine Terminal is equipped with Single Point Moorings that allow to load tankers safely at a significant distance offshore, including bad weather conditions.
The Expansion provides for the CPC pipeline system capacity increase to 67MMTA. The Expansion Project includes rehabilitation of the existing, and construction of 10 additional pump stations (2 in the Republic of Kazakhstan and 8 in the Russian Federation), six crude oil storage tanks near Novorossiysk, as well as third single point mooring at the CPC Marine Terminal and replacement of 88 km of pipelines in Kazakhstan with a larger diameter pipe. The total amount of the Project investments will be US$ 5.4 billion. It is planned to complete Expansion in 2015.