In a month, Caspian Pipeline Consortium is going to celebrate the 15th anniversary of the first oil tanker loading. The length of the Tengiz-Novorossiysk pipeline built and operated by an international consortium, which delivers crude oil from Kazakhstan and Russian oil fields to the world market via a marine terminal near Novorossiysk, constitutes more than fifteen hundred kilometers. For one and a half decades already this route has been rightfully considered to be one of the most reliable for oil transportation from the Caspian region to foreign markets.
In the southern regions of Russia crossed by the Consortium pipeline CPC is well known as a responsible taxpayer, employer, as well as a good corporate citizen. So, the residents of Kalmykia associate CPC participation in the life of the Republic, first of all, with new schools, kindergartens sport facilities, latest medical equipment in district hospitals. The Consortium social policy is highlighted by CPC General Director Nikolay Gorban.
- CPC pipeline system crosses four regions of Russia, including Kalmykia. How does CPC implement the policy of social partnership with regional authorities?
Nikolay Gorban: We do appreciate the high level of trust and constructive cooperation established in the relations with the regional authorities, where the CPC pipeline runs. It is not just process activities and oil transportation via pipeline which are important for us, but social partnership as well. We should not only take, we should give as well. Over the last years the brand of the Consortium has become well familiar in the regions of our presence, because the Consortium
operations have a direct impact upon the enhancement of the local population living standard.
I would like to note that with the commencement of the Expansion Project the social and charity aid for the regions has increased significantly. To be more clear, since 2011 CPC has been expanding the throughput to deliver more crude oil from the oilfields of Kazakhstan and Russia.
Commissioning of new facilities and increasing of the CPC oil pipeline capacity allow us not only to forward considerable tax amounts to the local budgets and to create new jobs, but also to implement major social programs aimed at the development of public health, education, culture and sports in the regions.
Total funds allocated for social needs under the Expansion Project within Russia amount to 1.5 billion rubles. All in all, over the years of its operations the Consortium has invested more than 2.5 billion rubles in the development of the Russian regions. Since arrival in Kalmykia, the Company has allocated over 460 million rubles for the above purposes.
For the republican budget of Kalmykia CPC is a major taxpayer. The Republic hosts three of our facilities. These are two operating oil pump stations: Komsomolskaya PS in the Chernozemelsky District and PS-3 built last year under the Expansion Project in the Iki-Burulsky District, as well as PS-2 under construction and scheduled for commissioning in the second quarter of 2017.
- CPC oil pipeline system is hi-tech. Hence, launching of each new facility requires qualified manpower. Does the Consortium engage local specialists?
Nikolay Gorban: In the course of our activities we create extra jobs in the regions of our presence. Over the last 15 years the CPC operation potential has been formed almost completely out of local manpower. The number of jobs we create increased significantly when we started the Expansion Project which comprises upgrade of five current PSs and construction of ten additional interim stations, out of which 8 are in Russia throughout the pipeline route. Although we engage secondees for the construction of new stations and infrastructure facilities under the Expansion Project, upon completion of the latter and transition to Base Business, the Consortium will need permanent staff and we count on local residents specifically. CPC new hires have all opportunities for basic and advanced training. Our training programs include several stages, enabling professional growth from an intern to a proper operator.
- Let us come back to the social projects within Kalmykia. What are the main aspects and priorities of the CPC social policy in the region?
Nikolay Gorban: We have set a task of being a good corporate citizen and fulfill it consistently. In doing so, jointly with the Shareholders we have introduced special rules. Our priority is to provide financial support for public health, education, sports, mass sports at that and not professional. We do not help authorities, law enforcement agencies and religious organizations. Another important aspect: we are very particular to make sure that the social facilities, which we build and the programs which we fund to help the municipal and regional authorities, have no cross financing from the budget and other sources.
As regards the Republic of Kalmykia, the focus here is on the development of public health, pre-school and school education. This year, about 10 social and charity projects are under implementation in Kalmykia with our support, besides three more are carried out under the Expansion Project. On a regular basis, the Consortium finances traditional charity programs “CPC – to First Grade Pupils”. “CPC – to Gifted Children” and others, as well as allocates funds to provide the republican health, education and sport institutions with equipment, furniture and transport. CPC allocates annually considerable funds for the development and improvement of the education and physical culture conditions for the oncoming generation: in 2014 with the help of the Consortium the refurbishment of the Sports Palace was completed in Elista, in 2015 a sports ground was built in Iki-Burul village.
At the same time, we submit very strict requirements to the contractors which construct the facilities, where we participate, and to the procured equipment: all facilities must be built with high performance quality and fully comply with all safety standards, this also applies to the procured equipment.
- How, amid the crisis, does the CPC Management succeed in the continuation of the social programs and not close them?
Nikolay Gorban: All our charity activities are implemented in strict compliance with the policy set forth by the companies – CPC Shareholders, and we intend to pursue it consistently. Modern business is unthinkable without social responsibility. As we realize social significance of our presence in the regions hosting the CPC facilities and importance of our support for the people living there, we are determined to continue allocating funds from our budget for social programs. We have set the level and will maintain it.
I would like to stress once again that we take very seriously the strengthening and development of cooperation with the Republic of Kalmykia. We hope that the charity programs implemented by the Consortium under both, Base Business and Expansion Project, will contribute to the improvement of the life of the people.
Key question
- It is known that CPC controls in the regions both, construction and further use of the social facilities it has built.
Nikolay Gorban: Yes, control is very strict. Within Russia and Kazakhstan, we have companies delegated with relevant authority. Besides, in all regions we have Consortium representatives, whose responsibilities comprise, inter alia, control over intended use of the facilities built under the CPC charity programs. If it is a sports ground, then, in no case, it may rented or sold. At that, local residents use this sports facility free of charge. There have been no precedents yet of funds being spent carelessly or in vain.
08.09.16, Юг России (приложение к «Российской газете»)