CPC guarantees efficient and environmentally safe movement of crude oil

The Project is designed to increase the trunk pipeline capacity

A Working Meeting between CPC and KazTransOil CEOs

20170906.jpgA meeting of Mr. N. Gorban, CPC General Director, Mr. D. Fahy, First Deputy General Director with Mr. Dimash Dosanov, KazTransOil Director General was held on 6 September 2017. The meeting was held on the eve of KazTransOil 20th Anniversary celebrations.

CPC CEO noted that over those years the company had come a long way, becoming the national operator of trunk pipelines of Kazakhstan. “It is hard to overestimate the importance of the company that you lead: currently, KazTransOil transports approximately 50 % of the total oil production in Kazakhstan and up to 97% of oil delivered to the Kazakhstan refineries”, Nikolay Gorban stressed.

Close cooperation between the oil transport companies is nearly fifteen years old: oil from the Uzen – Atyrau, Kenkiyak – Atyrau and Martyshi – Atyrau of the Kazakhstan operator is delivered to PS Atyrau of the Consortium. Participants of the meeting also reviewed future cooperation in the light of MTPA capacity of the CPC system upon completion of the Expansion Project.

CPC Expansion Project is scheduled for completion in the 4Q17 and the Consortium will then gradually increase oil liftings at the Marine Terminal (Yuzhnaya Ozereevka, Krasnodar Krai) provided that the shippers deliver all nominated volumes.

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%.