CPC guarantees efficient and environmentally safe movement of crude oil

The Project is designed to increase the trunk pipeline capacity

The managing bodies of CPC have discussed the matters pertaining to the preparation for the Annual Shareholders’ Meetings

Caspian Pipeline Consortium-R Board meeting and Caspian Pipeline Consortium-K Extraordinary Shareholders' meeting were held on April 17, 2012 in Moscow.
The meeting participants have discussed the matters pertaining to the preparation for the forthcoming Annual General Shareholders' meetings of both Companies scheduled for the end of May 2012. The representatives of Consortium Shareholders have preliminarily approved Companies' annual reports and accounts for 2011 and reviewed retention of an auditor.
The attendees have discussed various aspects of ongoing financial and business performance of the Company as well as organizational issues related to the CPC Expansion Project implementation. In particular, they discussed proposals by the Company management to establish separate offices in the Republic of Kalmykia and Stavropol Krai to manage CPC infrastructure facilities newly established within their territories.
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.
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. The total amount of the Project investments will be US$ 5.4 billion. It is planned to complete Expansion in 2015.
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%.