CPC guarantees efficient and environmentally safe movement of crude oil

The Project is designed to increase the trunk pipeline capacity

CPC and the Stavropol Krai signed additional cooperation agreement

On 25 June 2015 the Caspian Pipeline Consortium and the Stavropol Krai administration concluded an additional Cooperation Agreement for the implementation of social projects being implemented in the Stavropol Krai at the expense of CPC. The document was signed by Nikolay Brunich, General Director of CPC, and Vladimir Vladimirov, Governor of the Stavropol Krai. The ceremony was also attended by leading specialists of the Consortium, members of the Stavropol Krai Government and heads of the Stavropol Krai districts.

In 2015 the Consortium shall, in addition to its Expansion Project implementation activities, allocate RUR 145 mln to finance the Stavropol Krai’s social projects. Another RUR 42 mln shall be allocated to the Stavropol Krai under the CPC’s regular program. Let us remind you that fruitful cooperation between CPC and the Stavropol Krai has already exceeded fifteen years: starting from 1998 up to 2014 the Consortium has allocated more than RUR 400 mln to meet the Stavropol Krai’s various social needs.

During the meeting Nikolay Brunich, General Director of CPC, spoke about the Consortium’s activities in the Stavropol Krai and the implementation of the Expansion Project. In particular he noted that PS-4 will be commissioned in the region this year, and PS-5 the next year. Currently the Consortium is busy selecting the local staff for the above stations.

In his turn Vladimir Vladimirov, Governor of the Stavropol Krai, noted the high level of cooperation with the Caspian Pipeline Consortium and expressed his hope the cooperation would successfully develop throughout the entire period of the CPC pipeline operation.

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%