On May 12th Leonid Bokhanovskiy, Deputy General Director, RF Government Relations Department, travelled for the Company to the Republic of Kazakhstan.
As part of his trip Leonid Bokhanovskiy was received by B. Sagintayev, First Deputy Prime Minister of Kazakhstan. Business meetings were held with Energy Minister K. Bozumbayev, Agriculture Vice Minister E. Nysanbayev, A. Musienko, Minister-Counsellor of the RF Embassy in the Republic of Kazakhstan, and N. Zhunusov, acting Chairman of the Forestry and Fauna Committee. The meetings were attended by Kairgeldy Kabyldin, Deputy General Director, RK Government Relations, CPC, Mellyat Karabalin, CPC-K Executive Director and Victor Kosolapov, Governmental Authorities Relations Manager, CPC. The parties discussed the Pipeline Consortium’s operation in Kazakhstan.
Kanat Bozumbayev, Minister of Energy, RK, noted that the Caspian Pipeline Consortium pumping up to 40% of all Kazakh crude oil shipped for export was of particular importance to Kazakhstan power economy, and the Ministry intended to render comprehensive support to the Project.
At the meeting with Agriculture Vice Minister E. Nysanbayev and N. Zhunusov, acting Chairman of the Forestry and Fauna Committee, the subject of preservation of the saiga population in the Republic with the Consortium’s participation was reviewed. Erlan Nysanbayev pointed out that the problem of the saiga recruitment was of particular urgency at the moment, given the massive animal kill in the past year. Therefore, the Ministry took interest in the International Environmental Program to preserve the steppe antelopes which CPC was to implement in 2016-2017.
At the meeting in Russia Embassy in Kazakhstan Leonid Bokhanovskiy and Alexander Musienko, Minister-Counsellor of the Embassy, discussed the key aspects of the Russia-Kazakhstan cooperation.
For reference.
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%.