On 3-5 December General Director of Caspian Pipeline Consortium made a working visit to the Krasnodar Krai.
Nikolay Brunich inspected CPC new regional office, talked to the Western Region staff and met newly appointed Regional Manager Sergey Potryasov. The head of the Consortium discussed with company specialist the current status of construction activities within the Krasnodar Krai, where additional pump stations PS-7 and PS-8 are being erected and Expansion Phase 1 at Kropotkinskaya PS is expected to be completed in mid-December.
During the visit Nikolay Brunich had a meeting with Deputy Head of Krasnodar Krai Administration Veniamin Kondratiev, where understanding on mutual cooperation was reached and PS-8 land allocation issue was reviewed. V. Kondratiev assured that all necessary support would be provided to the Consortium for accelerated solution of the matter.
In the hero city of Novorossiysk Nikolay Brunich took part in the ceremony of handing-over to the municipal bus company 9 new buses designed for transportation of city residents, including disabled ones. City Mayor Vladimir Sinyagovsky thanked the Consortium for its gift: “CPC honors all commitments related to implementation of mutually endorsed social programs aimed at the city development. These are the programs in health care, education, transport infrastructure, etc. Bus handover is yet another act aimed at improving the life of the residents of Novorossiysk and strengthening our cooperation”. In his turn, Nikolay Brunich pointed out that the cooperation between the Company and the city did not stop there, and he thanked the Head of Novorossiysk for the help in the program implementation and carrying out of the Caspian Pipeline Consortium business.
At the end of the trip the head of the Consortium visited Marine Terminal, including Tank Farm, where active construction work is in progress under Expansion Phases 2 and 3.
CPC pipeline system is one of the largest investment projects in the energy industry with participation of foreign capital on the CIS territory. The length of the pipeline connecting the oil fields in Western Kazakhstan with the Marine Terminal near Novorossiysk is 1,511 km. CPC Marine Terminal is equipped with single point moorings which allow for safe tanker lifting at a considerable distance from the shore, also when the weather conditions are unfavorable.
The Expansion Project includes rehabilitation of 5 existing and construction of 10 additional pump stations (2 in the Republic of Kazakhstan and 8 in the Russian Federation), six new storage tanks (100,000 cu.m each) in addition to the existing four 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 amount of the Project investments will be 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% и Oryx Caspian Pipeline LLC – 1.75%