Press release December 16, 2009

​CPC-R Board of Directors meeting and CPC-K Extraordinary General Shareholders’ meeting were held on December 15/16 in Moscow.

The meetings’ agendas were mainly focused on the Expansion Project implementation. The CPC Shareholders’ discussions held in a constructive business-like atmosphere have resulted in the following agreements.

The Expansion Project Implementation Plan was approved including a wide range of matters pertaining to the Project management, purchase of long-lead equipment and financing approaches. The form of key commercial agreements was approved. Actual staged implementation of the agreements reached will commence as early as in January 2010.

According to the current estimates, the Expansion providing for the CPC pipeline system capacity increase to 67MMTA will be fully completed in 2014. The Expansion Project includes construction of 10 additional pump stations (2 in the Republic of Kazakhstan and 8 in the Russian Federation), six crude oil storage tanks near Novorossiysk, as well as third single point mooring at the CPC Marine Terminal. The Project will be mainly funded out of CPC’s own financial resources.

In addition, the Shareholders have reviewed a number of aspects of Company’s ongoing financial and business performance and adopted resolutions necessary for effective and safe operation of the pipeline.

CPC Shareholders: Russian Federation (represented by Transneft – 24% and CPC Company – 7%) – 31%; Republic of Kazakhstan (represented by KazMunaiGaz – 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%.