CPC guarantees efficient and environmentally safe movement of crude oil

The Project is designed to increase the trunk pipeline capacity

CPC General Director Nikolai Brunich meets with Chevron Vice President Jay Pryor


CPC General Director Nikolai Brunich and Chevron Vice President Jay Pryor had a working meeting at the St. Petersburg economic forum on 18 June. They discussed the progress of the CPC expansion project and in particular, project completion matters.

At the meeting Nikolai Brunich stated all Expansion construction & installation work would be completed by the end of the year. The new facilities should be commissioned by the end of Q1, 2016, after undergoing necessary testing. The consortium’s CEO also reminded that it had started shareholder Debt repayments back in April, saying about USD 1.5 billion was planned to be paid out by the end of the year. This is higher than originally planned due to additional revenues becoming available from step-by-step pipeline capacity expansion and increased throughput volumes.

Jay Pryor, in his turn, thanked Nikolai Brunich for his productive efforts in moving along the Expansion project, in particular, building the new facilities strictly on the approved schedule and within the approved budget. The CPC shareholder’s top manager expressed special thanks in recognition of CPC’s HSE policies. He stated that the 10 million manhours achieved without days-away-from-work injuries was a world-level result to be proud of. In conclusion Jay Pryor wished the CPC General Director to complete the Expansion project successfully and invited him to visit Chevron’s headquarters in Houston.

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%​