CPC General Director Nikolai Brunich, while on his May 15-16 business trip, held a meeting at the CPC Marine Terminal to discuss work progress under the Expansion Project. The meeting was attended by members of the Tank Farm construction management work group, the contractor and the Project Management Company. The participants of the meeting recieved an update made by the working group leader and marked progress achieved over the month since the previous meeting. A comprehensive testing schedule was outlined for three under-construction oil tanks, according to which Tank 8 will be ready by November later this year and Tanks 4 and 6 by January and February 2015 respectively.
Summing up the results of the meeting, Nikolai Brunich stressed the need to stick to the schedule strictly.
As part of his trip CPC's top executive attended an oil spill response training exercise, offshore and onshore, at the Marine Terminal. Resources and equipment provided by the contractors, Lamnalco and Transneft-Service, were used to respond to a simulated incident. A total of 20 vessels and tugs were mobilized as well as 6 small boats to deploy booms totaling 5 km in length. Onshore protection involved 100 people. The exercise was conducted as part of preparations to a large scale drill that will be conducted at the Marine Terminal in June.
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%