Meetings of the Caspian Pipeline Consortium managing bodies

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

The meetings’ agendas were focused on the Expansion Project implementation. The Shareholders have discussed various aspects of the first Expansion stage.

A new composition of the Company’s Board of Directors was elected at the CPC-K Extraordinary General Shareholders’ meeting. The new membership includes N. Platonov, CPC General Director.

In addition, the participants have discussed various aspects of Consortium’s ongoing financial and business performance.

The Expansion provides for the CPC pipeline system capacity increase to 67MMTA. The Expansion Project includes rehabilitation of the existing, and 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 and replacement of 88 km of pipelines in Kazakhstan with a larger diameter pipe.

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%.