Home/Press Center/Press Releases/2012/Safety Issues – Center of Attention and an Unconditional Priority

CPC guarantees efficient and environmentally safe movement of crude oil

The Project is designed to increase the trunk pipeline capacity

Safety Issues – Center of Attention and an Unconditional Priority

On March 27, 2012 Caspian Pipeline Consortium (CPC) held an extended meeting in Moscow attended by representatives of the Shareholders, CPC Management, Expansion Project Management Contractors and all major Construction Contractors involved in the CPC oil pipeline system throughput capacity expansion.
Issues of health, safety and environment related to the implementation of the CPC Expansion Project were the subject of the meeting. The participants bring into harmony their positions and approaches to the solution of arising problems and minimization of potential risks.
When reviewing the existing practices and identifying optimum ways for further improvement of safety performance under the Project, the attendees stressed a special role of the Incident and Injury Free Program implemented by CPC and its contractors. There was an active exchange of views and experience between the Management of CPC and its contractors, as well as representatives of the CPC Shareholders – the international oil/gas companies which successfully apply to their operations the principles of this Program with a positive record of world-wide use. Strict compliance with the Incident and Injury Free principles is the most important condition for work performance under the Expansion Project. 
CPC General Director Nikolay Platonov in his speech underscored: “I believe that the high safety level achieved for 10 years of the CPC system operation will be fully maintained during upgrading and construction of new facilities of the oil pipeline infrastructure within the Expansion Project. Having visited the construction sites, I may state with satisfaction that the “die, but do it” principle with the CPC contractors was replaced by the understanding that no less successful construction results can be achieved through the observance of the highest safety standards, moreover without detriment to the schedule, cost and quality of work. Much is still to be done, and we need fully conscientious attitude, experience and persistent efforts of absolutely all persons engaged in the Project to improve our safety performance throughout the construction, pre-commissioning and commissioning of the facilities. On their part the company executives undertook in the process of decision-making to follow always first of all the safety principle and never compromise on safety issues for the sake of budget and schedule”.   
CPC Deputy General Director, Engineering and Projects William Simpson responsible for the Expansion Project implementation noted in the course of the meeting: “The main goal is to end each working day with every worker returning home safe and happy.  It is really going to be a challenge working in 2 countries, 22 different locations, having 18 contractors. A very important task is to continually improve the safety culture, to teach people to follow the regulations. The idea is to show them that following regulations, taking care of themselves and of each other makes the difference. To me a successful project is a safe one”.
The main tasks of the Incident and Injury Free Program implementation are development and improvement of the health and safety culture within the company and prevention of injuries and incidents at industrial facilities. The scope of the Program implementation is the improvement of health and safety control through co-operative effort at all levels in the organization. Prerequisite for success is relevant knowledge and its unconditional practical application by managers and employees, who should have clearly identified and accepted responsibilities, whether this is in specifying contracts, designing safe systems, supervising work or undertaking work. 
CPC traditionally pays much attention to the occupational health and industrial safety issues. In early 2010 CPC received and OHSAS 18001:2007 certificate based on the outcome of an independent audit of CPC’s occupational health and industrial safety management system. Besides, environment management system has been operational within the company since 2009 and its efficiency is confirmed by ISO 14001:2004 certificate.
By now, CPC Operations and contractors employees combined have worked for more than 11 million man-hours without DAFWC. That success came as a result of CPC persistent applying high safety standards on a daily basis.
The CPC pipeline system is one of the largest energy-sector investment projects with foreign capital in the CIS. The length of the pipeline connecting oil fields in Western Kazakhstan with the Marine Terminal in Novorossiysk is 1,511 km. CPC’s Marine Terminal is equipped with Single Point Moorings that allow to load tankers safely at a significant distance offshore, including bad weather conditions.
Expansion Project comprises upgrading of the existing PSs and construction of 10 additional ones (2 – in the territory of the Republic of Kazakhstan, 8 – in the Russian Federation), six oil storage tanks (100 thousand m3 each) near Novorossiysk and the third Single Point Mooring at CPC Marine Terminal, as well as replacement of 88km pipeline section in Kazakhstan by a larger diameter pipe. Total amount of investments in the Project is USD 5.4 billion.
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%.