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CPC guarantees efficient and environmentally safe movement of crude oil

The Project is designed to increase the trunk pipeline capacity

Working meeting in the Ministry of Energy of the Republic of Kazakhstan

On September 15, 2016, in Astana, CPC General Director Nikolay Gorban met with Minister of Energy of the Republic of Kazakhstan Kanat Bozumbayev. The main topics of the working meeting were the soon-expected commissioning of the Kashagan field and the progress of completion of Phase 3 of the CPC Expansion Project in Kazakhstan.

The CPC General Director assured the minister that by the end of October 2016 , the time the scheduled startup of the offshore field, the consortium’s pipeline system will have all necessary capacity to meet Kazakhstan shipper nominations. Thus, no later than mid-October 2016, A-PS-4 will be completely ready to operate. As a reminder, in 2015, as part of Expansion Project Phase 1 in Kazakhstan, two pump stations were already upgraded – PS Tengiz and PS Atyrau, with the construction of the forth pump station on the Kazakh section of the CPC Pipeline, APS-3A, currently in progress. Its commissioning is scheduled for the second half of 2017.

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%.