- What revenues has CPC in 2013?
- As we have pumped more than 32MMTA of crude oil, our revenues amounted to USD1.1bln.
- Will CPC Management Team continue recommending shareholders to spend CPC profit on Expansion Project?
- If we pump 40MMTA in 2014 as committed, we will be able to start repaying the principal of shareholder loans late next year in the light of potential revenues and Expansion Project costs.
- Where will extra volumes come from this year?
- This is the crude oil from Tengiz and Karachaganak; Rosneft is planning to inject up to 3MMTA at Kropotkin PS. Extra volumes total 10MMTA.
- What was the Expansion Project spending in 2013, and how much is to be spent in 2014?
- Last year CPC spent almost USD600mm on Expansion Project construction and installation, this year it is planned to spend USD800mm.
- Are all Expansion Project RF Phase-1 facilities constructed and ready for operation?
- As for RF facilities the situation is rather good: the construction and trial operation of SPM-3 at Marine Terminal in Novorossiysk is completed, and after its commissioning we will be able to load 70MMTA.
The upgrade of three pump stations – Astrakhan PS, Komsomolsk PS and Kropotkin PS is also within the Phase-1 scope and it is completed by 99.9%. RTN is currently inspecting these sites. We plan to finish SU&C by March 1, and after it all three pump stations will be transferred for operation.
At MT Tank Farm a 5-month construction delay is caused by reasons beyond CPC control because the tank foundations require additional reinforcement. KXM considerably increased its labor force on this site, and I hope that we will significantly reduce such delay.
Today we have issues with implementation of Phase 1 in Kazakhstan. We are planning to send Russian experts with PS-related experience to provide support to our colleagues in Kazakhstan. The project manager has been recently replaced by KTO CEO Mr. Kabyldin who has long work experience in the oil sector and with whom we started fruitful cooperation. We had already two meetings and the next meeting is scheduled for February 11. We set October as the target date for commissioning key ML pumps that will enable to withdraw back-up pumps from operation.
- What is the reason for considerable delay in Kazakhstan?
- Today it is inappropriate and counterproductive to find out who is to blame. Our task is to analyze the situation and facilitate the work of contractors, stop design changes and reduce the delay at maximum.
- Has CPC any early termination of Expansion Project contracts due to unsatisfactory quality of work?
- We used to have a problematic contractor in RF. But when we demanded in a tough manner the early termination, this contractor stepped up its resources and greatly reduced the delay over the last three months, for which the contract was extended. In principal, the situation with the RF pipeline is greatly improving.
- What tenders for Expansion Project are planned for 2014?
- This year we planning only small-scale procurement tenders, as tenders for construction, installation, electrical work, start-up and commissioning have been already conducted.
- Previously CPC did not rule out the use of external financing for Expansion Project. Will CPC utilize it this year?
- There is a USD500mm credit line available for CPC at rather beneficial terms and conditions. We treat it as a back-up and extend the facility agreement every year. We are able to use this reserve to start repayments of shareholder loans and to secure our working capital.
- Have shareholders any plans to revise the tariff?
- Not yet, this issue has not been raised yet.
- Is CPC aware of the time and volumes of crude oil supplies from Kashagan?
- We have not received Kashagan nominations yet. But I would like to point out again that the CPC pipeline is the most optimal route for transportation of Kashagan crude.
- Has Lukoil advised CPC on the start of crude oil supplies from the Vladimir Filanovsky Field in the Caspian Sea?
- Lukoil is planning to start these supplies in 2015.
- In January CPC loaded for export 18% more than the previous year. What is the reason for such considerable increment?
- Late December and in the first ten days of January we tried to pump at the rate of 40MMTA and succeeded. Now the maintenance is underway, and the pumping at such rate will be resumed in several days.
Interfax
http://www.interfax.ru/357132