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Press Release. September 10, 2004 |  | |
For immediate release
September 10, 2004
Contacts:
Natalia Prutkovskaya
Vadim Bely
at (095) 775-00-77
September 10, 2004 -- Russia, Moscow –
The Caspian Pipeline Consortium (CPC) has transported over 40 million tons of oil through its pipeline system since the beginning of operations in October 2001. Presently, CPC is shipping about 2 million tons a month (equivalent to over 500,000 bopd) – all of this originating from Kazakhstan.
Later this year CPC expects to start receiving its first oil from Russia. ZAO NaftaTrans is constructing a rail receiving and storage facility close to CPC’s Kropotkin Pump Station along with a connecting pipe to the pump station. The facilities are scheduled for completion before the end of the year. NaftaTrans will ship Russian origin crude; the Russian Federation, and Russian Producing Companies – Rosneft-Shell and LUKArco (A LUKOIL-BP JV) have access rights to the CPC system at Kropotkin. CPC presently has capacity to receive up to 6.5 million tons of crude and Shareholders are forecasting to use all of this capacity. Kropotkin capacity will rise to 15 million tons after expansion.
“CPC is now at the projected capacity so far as Caspian original oil is concerned and will shortly be receiving Russian oil in Krasnodar Krai, boosting our throughput to at least 28 million tons per year,” said CPC General Director Ian MacDonald. “Our shareholders continue to forecast substantially increased volumes in the next 2+ years, which will require CPC to move ahead with system expansion.”
CPC’s Shareholders are presently involved in intensive discussions on the basis for approving system expansion. This will see CPC’s capacity rise to 67 million tons per year through the construction of 10 additional pump station, additional storage and a third offshore mooring facility.
“Thus far, CPC has contributed $475 million to the Government of Russia in taxes, fees and contributions to the regions,” added Ian MacDonald. “Expansion of the CPC pipeline system will see our revenues trebling and will bring more substantial benefits to all our Shareholders and host Governments.”
The multinational ownership interest in the CPC is as follows: Russian Federation – 24%, the Republic of Kazakhstan – 19%, the Sultanate of Oman – 7%, Chevron Caspian Pipeline Consortium Company – 15%, LUKARCO B.V. – 12.5%, Rosneft/Shell Caspian Ventures Limited – 7.5%, Mobil Caspian Pipeline Company – 7.5%, Agip International (N.A.) NV –2%, BG Overseas Holding Limited – 2%, Kazakhstan Pipeline Ventures LLC – 1.75%, and Oryx Caspian Pipeline LLC– 1.75%.
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