CPC guarantees efficient and environmentally safe movement of crude oil

The Project is designed to increase the trunk pipeline capacity

CPC Managing Bodies Held Annual Meetings

CPC-R and CPC-K Annual General Shareholders Meetings, as well as CPC-R Board of Directors Meeting were held on 26-28 May.
The Meetings approved the CPC-R 2014 Annual Report and Annual Statements.
The Shareholders elected new Boards of Directors of both Companies, as well as CPC-R Audit Commission. Ernst & Young was approved as Consortium auditor.
Besides, Consortium business issues were reviewed and report was heard on the progress of trunk oil pipeline throughput expansion. 
This year it is intended to increase pumped volumes in two stages, in July and at the year end, as and when new operation facilities are commissioned. Thus released extra funds will be forwarded to repay the Consortium debt to the Shareholders. In this context, the amount of repayments to the Shareholders may increase from the originally planned USD 1 billion 50 million up to USD 1 billion 350 million. Total debt to the Shareholders, which, as of 31 December 2014, constituted USD 6.6 billion, is scheduled to be fully repaid by the end of 2020. As a reminder, the first tranche of USD 600 million was transferred to the Shareholders in April this year.
The managing bodies also discussed health and safety issues. It was noted that, as of the beginning of May, 10 million working hours were recorded without days-away-from-work injuries. The achieved level is of special importance considering big numbers of personnel engaged – over 5 thousand people work at the sites concurrently.  
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%