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Press Release January 12 2005 |  | |
For immediate release
January 12, 2005
Contacts:
Natalia Prutkovskaya
at (095) 775-00-77
January 12, 2005 --
Moscow, Russia – The Caspian Pipeline Consortium (CPC) has transported over 50 million tons of oil through its pipeline system since it began operation in October 2001. The total volume of crude oil shipped by CPC in 2004 has amounted to 22.5 mln tons, including 2.76 mln tons shipped in December.
“CPC is already operating above its mechanical design capacity as far as Caspian original oil is concerned,” said CPC General Director Ian MacDonald. “and in December, we received over 400,000 tons of Russian oil at Kropotkin. CPC expects to ship 32 million tons in 2005. Our shareholders continue forecasting substantially increased volumes in the next 2+ years, which requires CPC to move ahead with progressive system expansion.”
CPC’s shareholders are currently involved in intensive discussions on the basis for approving system expansion. This will see CPC’s capacity rise to 67 million tons per year with the construction of 10 additional pump stations, additional storage and a third offshore mooring facility.
“From 1998 to 2004 CPC has contributed over $0.5 billion to the Russian government in taxes and fees,” added Ian MacDonald. “After expansion, the 67 million tons a year at present tariff rates will generate well over $1.5 billion a year in tariff revenues. Taxes and dividends will provide all CPC shareholders, including the host governments of Russia and Kazakhstan, with a high level of secure income for the next 35 years.”
The multinational ownership 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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