CPC-R and CPC-K Annual General Shareholders Meetings and Meeting of the CPC-R Board of Directors were held in Geneva on May 27-29.
In the course of the meetings, new memberships of the CPC-R Board of Directors and Audit Commission were elected.
The meeting participants discussed all items of the agenda which had been approved by Shareholders. Company business results were also discussed. It was noted that the volume of crude oil lifted at the Marine Terminal in 2013 was 32.7 MMT.
The current status of the Expansion Project was also discussed. Shareholders approved completion of work at all Project’s locations in December 2015 and instructed CPC to expedite signing with the contractors of the comprehensive facility commissioning schedule in line with the hydraulic model of increasing the pipeline capacity.
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 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%.