CPC guarantees efficient and environmentally safe movement of crude oil

The Project is designed to increase the trunk pipeline capacity

CPC-R Board and CPC-K Extraordinary General Shareholder Meetings

On February 27, 2017, a meeting of the Board of Directors of Caspian Pipeline Consortium-R and an extraordinary general shareholder meeting of Caspian Pipeline Consortium-K were held in Moscow. Shareholder representatives reviewed some most important aspects of the company’s current financial and economic activities and passed relevant resolutions.

The governances bodies summarized interim results of pipeline system throughput expansion and reviewed a project completion plan through the end of 2017.

The attendees discussed completion progress of Shareholder audit findings. A January-February 2017 business update was presented.

Special focus was made to industrial safety matters. The Shareholders highly appreciated results achieved in this area, having noted that efficient site safety measures were in place and, as a result, there had been no serious incidents.

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 upgrade 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%.