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CPC guarantees efficient and environmentally safe movement of crude oil

The Project is designed to increase the trunk pipeline capacity

Caspian Pipeline Consortium participated in the exhibition Achievements of Kazakhstan Energy Sector

Caspian Pipeline Consortium participated in the exhibition Achievements of Kazakhstan Energy Sector as a part of the extended meeting of the Board of RoK Ministry of Energy.

Kairgeldy Kabyldin, Deputy General Director, CPC-K informed the industry Ministers, Parliament members and media representatives on the CPC 2016 milestones.

As previously reported, CPC has set its own record by shipping 44,317,580 tons of crude oil to the global markets, including 40,819,897 tons of the Kazakhstan shippers and 3,497,683 tons of the Russian shippers.

At the enlarged meeting of the Board, Kanat Bozumbayev, RoK Minister of Energy, provided an update of 2016 performance indicators and plans for 2017. According to the Minister, in 2016 the oil and condensate production amounted to 78 million tons. In 2017 it is envisaged to produce 81 million tons out of which 65 million tons will be exported.

It should be noted, that the Shippers nominations for 2017 reached 65.7 million tons, including 54.7 million tons from Kazakhstan and 11 million tons from Russia.

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%.