A meeting of CPC and KazTransOil Officers was held on June 12, 2019, in Nur-Sultan, the capital of the Republic of Kazakhstan. CPC General Director Nikolai Gorban, CPC-K Board Chairman Timur Rakhanov and Mukhit Mazhenov, CPC Eastern Region Manager, participated in the meeting. KazTransOil was represented by Deputy General Director Alibi Kultumiyev and Erkin Nurzhau, Deputy Director of the Operator and Maintenance Services Department.
The parties discussed a wide range of matters related to the Companies’ interaction on performance of contractual obligations on maintenance, repair and emergency response at CPC-K crude pipeline system facilities in the Republic of Kazakhstan.
As a reminder: The Contract between CPC and KTO was signed in May 2018 for a five-year term - from 2018 to 2023. The Contract value amounts to approximately KZT 23 B (about $70 M).
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%.