CPC guarantees efficient and environmentally safe movement of crude oil

The Project is designed to increase the trunk pipeline capacity

Press Conference of CPC General Director

On 31 January 2017, CPC General Director Nikolay Gorban held a press conference in the Moscow Office of the Consortium. It was dedicated to the Company 2016 performance results and current-year plans.
As noted by the General Director, in 2016 the CPC system accepted 44.3 million tons of crude hydrocarbons, which is an absolute record of annual pumping throughout the CPC operation history.
All in all, in 2016 the CPC Marine Terminal loaded 435 oil tankers – 26 more than in 2015.
The CPC revenues reached USD 1.6 billion or 7 % more compared to 2015 (USD 1.5 billion). The total profit increased by 18 %.
In 2016, under the Tengiz-Novorossiysk Oil Pipeline System Expansion Project, the Tank Farm of the CPC Marine Terminal was upgraded and enlarged up to the capacity of 1 million tons. А-PS-4 was commissioned, oil was put in and comprehensive tests started at А-PS-4A. А-PS-5A and PS-8 were prepared for oil-in. PS-5 was brought to a final stage of startup and commissioning prior to supply of the operating medium.
Besides, the Operations Control Center (OCC) was put into operation at the CPC Marine Terminal after a drastic upgrading, including a new SCADA – a system of supervisory control and data acquisition, which tracks on line all stages of crude oil transportation from Tengiz to Novorossiysk.
In 2016, the Consortium continued the implementation of major charity programs. The amount of funds allocated for the charity projects under a regular program within Russia constituted RUR 337 million. KZT 610 million were earmarked for charity in Kazakhstan. Within the framework of the social facility construction program funded by the Expansion Project, the Consortium allocated in 2016 RUR 97 million in Russia and KZT 400 million in the Republic of Kazakhstan.
Speaking about the 2017 plans, the General Director stressed that, according to the shipper nominations, 65.7 million tons of crude oil would be moved via the Tengiz-Novorossiysk Oil Pipeline in 2017. Out of this quantity, the Kazakhstan resources account for 54.7 million tons, Russia – 11.0 million tons.
Pursuant to the accepted nominations, the Kashagan oilfield will supply 10.4 million tons of crude oil to the CPC Pipeline System in 2017. 5.4 million tons of crude oil are expected from the Filanovsky and Korchagin oilfields.
The 2017 CPC Base Business Investment Program is about USD 70 million. It includes measures for the enhancement of the facility fire safety and antiterrorist protection systems, refurbishment and scheduled replacement of equipment. In 2017, the Consortium intends to fully complete the Expansion Project. The 2017 allocations for its implementation are USD 150 million. The commissioning of А-PS-4А and А-PS-5А in the Astrakhan Region is scheduled for the first half of 2017 to be followed by PS-8 in the Krasnodar Krai and PS-5 in the Stavropol Krai. PS-2 in Kalmykia will be the last to be put into operation in the RF under the Expansion Project.
In Kazakhstan, A-PS-3A is scheduled for commissioning in the second half of 2017. When all Expansion facilities are in operation, the pipeline system throughput will reach 67 million tons of crude oil per annum.
In 2017, CPC will launch an environmental project “Ecofriendly Line”. Currently, consultations are underway with environmentalists regarding the forthcoming events in the Company business regions. 
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%.