CPC General Director Nikolai Brunich travelling with a Transneft delegation visited Munich on October 22 to meet with the CEO of Siemens AG Joe Kaeser who headed the German concern back in August.
The meeting participants discussed some high-level issues and key areas for joint cooperation. There was also a separate dialog on issues related to equipment supply contracts in support of the CPC Expansion Early Capacity. The constructive discussion resulted in some decisions that help prevent delays in delivery of equipment needed for the timely commissioning of the upgraded and new CPC facilities.
The CPC pipeline system is one of the largest investment projects in the energy sector 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. The CPC Marine Terminal is equipped with single point moorings allowing to load tankers safely far offshore, including in bad weather conditions.
The Expansion Project provides for an upgrade of 5 existing and the construction of 10 additional pump stations (2 in the Republic of Kazakhstan and 8 in the Russian Federation), six 100 cum crude oil storage tanks near Novorossiysk and a third SPM at the CPC Marine Terminal, and also the replacement of an 88 km pipeline section in Kazakhstan with a larger diameter pipe. The total investment into the Project will amount to US$ 5.4 billion
CPC Shareholders: Russian Federation (represented by Transneft – 24% and CPC Company – 7 %) – 31%; Republic of Kazakhstan (represented by Kazmunaygaz – 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%.