CPC guarantees efficient and environmentally safe movement of crude oil

The Project is designed to increase the trunk pipeline capacity

SPIEF-17: CPC Head and Republic of Kalmykia Head discussed the prospects for cooperation

On June 2, 2017 CPC General Director Nikolay Gorban met with Alexei Orlov, Republic of Kalmykia Head, at the St. Petersburg International Economic Forum - STIEF-17. It was noted at the meeting, that long-standing good relationship tied the Consortium and Republic. Nikolay Gorban informed the Republic Head of the construction progress at PS-2 in Kalmykia. That station is expected to be put into operation in 2017 at the completion stage of CPC Expansion Project. The parties also discussed possible directions of the cooperation between the Consortium and Republic in terms of implementation of charity, social and culture programs. In the course of cooperation between CPC-R and Republic, the Company has allocated almost half a billion Rubles towards the Region’s social needs.

CPC has currently two facilities in operation in the Republic of Kalmykia: Komsomolskaya PS and PS-3.

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%.