A Caspian Pipeline Consortium-K extraordinary shareholder meeting and a Caspian Pipeline Consortium-R Board meeting were held in Moscow on 25-26 November 2015.
The meetings approved the 2016 opex budget of both companies and endorsed a business plan for the next five years, until 2020. A management business update and an HSE update were presented.
The CPC governance bodies summed up the expansion project progress achieved in 2015, noting that commissioning targets had generally been achieved. All construction work was completed within an approved budget. A total of 43 million tons of oil volumes nominated by the shareholders would be successfully transported by the oil pipeline system and loaded at the CPC Marine Terminal by the end of the year. A 2015 Expansion project completion plan was reviewed.
There was a special focus on industrial safety during construction. The shareholders recognized high achievements in that area, noting that work site safety measures taken proved to be effective, helping to prevent any serious incidents.
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%.