CPC guarantees efficient and environmentally safe movement of crude oil

The Project is designed to increase the trunk pipeline capacity

CPC General Director’s working meeting with Radik Kharisov, Minister of Industry, Transport and Natural Resources of Astrakhan region

A working meeting took place between Nikolay Gorban, Caspian Pipeline Consortium General Director, and Radik Kharisov, Vice-Chairman of the Regional Government – the Minister of Industry, Transport and Natural Resources in Astrakhan on April 3, 2017.

Some matters essential for the population of the region were discussed, in particular, preparations for safe operation of a pontoon crossing across the Kigach River in the flood period. The 180 m long pontoon bridge was handed over by CPC to municipal ownership to the Krasnoyarsk District last December. The crossing was built in 2012, initially being part of a transportation system used to supply A-PS-4A construction with materials. Since then the pontoon bridge is virtually a “Life Road” for residents of the village of Maliy Aral who now have a direct road link with district and regional administrative and social centers. Earlier a detour would be about 40 km.

Having handed the pontoon crossing over to municipal ownership, CPC continues paying attention to this facility, which is indicated by yesterday's meeting by CPC CEO with the regional leadership.

Nikolay Gorban and Radik Kharisov also discussed a wide range of issues related to cooperation between the consortium and the region aimed at continuous improvement of the population’s life. Soon, the cooperation between the Government of the Astrakhan Region and CPC-R will be strike a 20-year anniversary. Since 1998 up to present, more than twenty contracts and cooperation agreements have been signed between CPC-R and the Government of the Astrakhan region. The latest document signed on February 9, 2017, is already supported with concrete charity events. For example, in March, CPC replenished the school vehicle fleet of the Enotayevsky and Kharabalinsky Districts with new Mercedes-Bens Sprinter Classic 411 buses intended for safe transportation of children. The consortium is financing supply of equipment to medical centers in the region, helping education, culture and sport establishments, providing assistance to the necessitous part of the population, buying gifts for first graders, and replenishing the sturgeon stock in the Volga river basin.

As stated by Radik Kharisov earlier, CPC-R is one of important taxpayers and employers in the Astrakhan Region.

“Considering that the Expansion facilities are not yet registered and are not commissioned, the amount of tax revenues into the consolidated regional budget amounts to over 200 million rubles which corresponds to the average level of payments for enterprises in the supervised oil and gas industry. Given the fact that investments into Expansion facilities in the Astrakhan Region exceed 20 billion rubles, the property tax should significantly increase in 2017. The personal income tax revenue will also increase, as personnel headcount hired to the new facilities will exceed 400 full time employees at each oil pump station. The presence in the region of such a developing and socially-oriented company as CPC can be only welcomed by the Regional Government and this cooperation will be only becoming stronger in the future.

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%.

CPC Press Service