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The Project is designed to increase the trunk pipeline capacity

Comprehensive Testing of А-PS-4 Will Be Completed by the 15th of October

On September 17, 2016, as part of his business trip to Kazakhstan, CPC General Director Nikolay Gorban visited the Consortium’s Pump Stations under construction. During his visit to the facilities the Company’s Head was accompanied by Deputy General Director Mikhail Grishankov, Cristopher Scott Bowen CPC Engineering and Project Consultant, Serikkali Murinov, Oil Movements and Commerce Consultant, and CPC Eastern Region Manager Sarsembay Murinov.

At А-PS-4 the Contractors reported about completion of all construction and installation activities and their readiness to proceed to filling in the process pipelines on September 20. After that comprehensive testing of all PS systems will be conducted. That procedure is planned to be completed by October 15.

Besides the main and auxiliary equipment of the PS CPC Managers visited the accommodation camp of the rotation personnel. It was noted that the accommodation camp had been commissioned in full. Preparation is being completed to start operation of the canteen: the equipment has been installed and fixed. The work on territory development is being completed at А-PS-4, the roads are being paved.

Construction and installation activities at А-PS-3А are going in full compliance with the revised schedule. The readiness of the facility which is scheduled to be commissioned during the second half of 2017 is 85 %. CPC Managers paid a lot of attention to observance of the labor protection and safety standards, high-quality performance of construction/installation and start-up and commissioning, and improvement of performance culture. Necessity of fulfilling all seasonal work to ensure an access to the Pump Station was pointed out to the Contractors.

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%.