On March 1, 2017, at the CPC Moscow office, CPC General Director Nikolay Gorban and Governor of Kalmykia Alexey Orlov signed a Cooperation agreement.
The parties agreed to continue a mutually advantageous partnership on a stable long-term basis. The agreement is aimed at further developing and increasing the efficiency of the industrial and transport infrastructure of the Republic of Kalmykia and CPC facilities, strengthening Kalmykia’s financial and economic position and improving the investment climate in the region.
CPC-R will continue its active financial aid to the social sphere of Kalmykia in the field of culture, education, health care and implementing support programs for the most vulnerable segments of the population.
Caspian Pipeline Consortium is making a major contribution to the development of the social sphere in its host regions. “Over the years, CPC-R’s cooperation with the Republic of Kalmykia has resulted in over 460 million rules being allocated for the region’s social needs by the Consortium”, noted CPC General Director Nikolay Gorban.
Currently, CPC has two facilities operating in the Republic of Kalmykia: the Komsomolsk pump station and PS-3. Another pump station, PS-2, will be commissioned in 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 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%.