CPC guarantees efficient and environmentally safe movement of crude oil

The Project is designed to increase the trunk pipeline capacity

General Director and CPC Shareholders visited PS’ under construction in Kazakhstan

CPC General Director Nikolay Gorban and CPC-R and CPC-K Board Chairmen Andrew McGrahan and Timur Rakhanov visited APS-3A and APS-4, new pump station currently under construction under the Expansion Project in Kazakhstan on 27-28 July 2016. While at the construction sites, they discussed current construction issues with contractors and appraised the actual readiness of the pump stations and accommodation camps.

The greatest focus was on work progress at APS-4 whose commissioning would give the oil pipeline an extra capacity it needs to receive crude oil from the new Kashagan oil field in Kazakhstan. The pump stations are being constructed by a contractor, KazStroySerivice. Significant progress has been achieved. The contractor has the challenge of commissioning the facility for operation by no later than November 2016.

Based on the results of the visit, a meeting was held with the Kazakhstan Pipeline Ventures PMC management and the contractor, KazStroyService, in the CPC Expansion office in Atyrau. Special focus was made on HSE compliance, construction and commissioning quality and work culture improvement. The meeting was minuted.

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%.