CPC guarantees efficient and environmentally safe movement of crude oil

The Project is designed to increase the trunk pipeline capacity

The CPC will retain leadership in oil export from Kazakhstan

Kayrgeldy Kabyldin, CPC-K Deputy General Director for ROK Government Relations, took part in the international conference Argus Kazakhstan & Central Asia Oil and Gas 2017 held in Almaty on June 28-29, 2017. View presentation. 
In his speech he stated the consortium’s position that CPC Blend would continue to sell at a premium in relation to Urals.
He also noted that there was a multi-vector oil transportation infrastructure now created in Kazakhstan. At the same time the CPC pipeline system was the main export route of Kazakhstan. "This year the CPC Expansion Project is going to be completed, which will increase the system throughput up to 67 million tons per annum, including 54 million tons of oil fields in Kazakhstan", confirmed K. Kabyldin.
"As noted by some experts and traders, CPC Blend has always been sold at a premium relative to the Urals brand. At present CPC Blend and Urals prices are equalizing, the reasons being market saturation, additional volume shipments from the Kashagan field, low oil prices and the volatility of the oil market. The actual value of CPC Blend determined by the output oil product basket after refining is much higher than the value of Urals", stressed Kayrgeldy Kabyldin.
During the conference leading international oil and gas analysts also commented that the mismatch between the differential of the CPC Blend market price in relation to Urals and its actual value in the Mediterranean  market could continue in the short-term.
As stated by K. Kabyldin, the CPC system is the most economic oil export route out of Kazakhstan. "The period of low oil prices is here to stay for a long time, the volatility of the world market is up. So it is important for Kazakhstan to define priority oil export directions allowing to capture the greatest value", he added in conclusion of his speech.
For reference:
CPC pipeline system is one of the largest investment projects in the energy industry with participation of foreign capital in the CIS. 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 loading at a considerable distance from the shore, also when the weather conditions are unfavorable.
CPC Shareholders: Russian Federation (represented by Transneft – 24% of and CPC Company – 7%) – 31%; Republic of Kazakhstan (represented by KazMunayGaz – 19% of 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% of and Oryx Caspian Pipeline LLC – 1.75%.