CPC guarantees efficient and environmentally safe movement of crude oil

The Project is designed to increase the trunk pipeline capacity

CPC Corporate Managing Bodies’ Meetings

Special General Meetings of Caspian Pipeline Consortium-R and Caspian Pipeline Consortium-K Shareholders as well as a CPC-R Board of Directors Meeting took place on November 27-28.
The Shareholders approved a resolution to take a third-party loan not exceeding USD 500 million to fund the Project to expand CPC crude pipeline which was the key Agenda issue of the Meetings. Debt finance was planned in 2010 in the Final Investment Decision on the Expansion Project. The loan will be within the planned Expansion Project budget of USD 5.4 Billion.
The Meetings approved the 2013 OPEX Budgets of both Companies and also reviewed the Business Plan which included financial forecasts, operations plans and strategic directions of the Company’s forecasted costs for the next five years. Resolutions on HR matters related to direct hires and those on salaries, bonus and social benefits were approved.
In the course of the General Shareholders’ Meetings new memberships of the Companies’ Boards of Directors and CPC-R Audit Commission and CPC-K Internal Audit were elected.
The Shareholders reviewed the day-to-day financial and operation business of the Company and listened to the Expansion Project progress update report. They have noted the progress in reconstruction of the existing facilities and construction of the new ones in Russia, with some of them being ahead of schedule. Also adjustments made earlier to the Project management system resulted in a certain positive dynamics in its implementation in Kazakhstan.
CPC Pipeline System is one of the major investment energy projects with foreign participation in the CIS. The pipeline that transports crude oil from the oil fields of Western Kazakhstan to the Marine Terminal in Novorossiysk is 1,511 km long. CPC Marine Terminal is equipped with single-point moorings, which enable safe loading of tankers at a considerable distance from the shore, including in adverse weather conditions.
The Expansion Project envisages rehabilitation of 5 existing and construction of 10 additional pump stations (2 in the Republic of Kazakhstan and 8 in the Russian Federation), six near Novorossiysk and an SPM at the CPC Marine Terminal to supplement 4 existing crude oil storage tanks. It also includes replacement of a 88 km pipeline section in Kazakhstan with a larger diameter pipe. Total investment in the Project will be US$ 5.4 billion.
CPC Shareholders: Russian Federation (represented by Transneft - 24% and CPC Company - 7%) - 31%; Republic of Kazakhstan (represented by KazMunaiGas - 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%.