CPC guarantees efficient and environmentally safe movement of crude oil

The Project is designed to increase the trunk pipeline capacity

CPC Participation in XI Eurasia Forum, KAZENERGY, in Astana

20170907-2.jpgOn September 7, 2017, CPC General Director Nikolay Gorban took part in the XI Eurasia Forum, KAZENERGY, in Astana. The Company’s Head made a report on the current operation business of the Consortium, which transports over two thirds of Kazakhstan export crude oil, and also spoke about CPC plans and development prospects.

In particular, Nikolay Gorban pointed out that before the end of the year the Consortium would complete commissioning of all Expansion Project facilities, thus allowing for the increase of the Tengiz-Novorossiysk pipeline system throughput capacity up to 67 M tons of crude oil per annum. The surplus capacity timely created by the Company lays favorable groundwork for further development of the most important oil producing centers in Kazakhstan.

He also noted that: “In 2017, as per the interim results, CPC intends to pump 55.6 M tons, with 50.2 M tons of crude oil being Kazakhstan resources, including 7.6 M tons from Kashagan field. We hope that the Producers would meet the delivery schedule,” - emphasized the Consortium’s Head.

In addition, in the course of his speech it was pointed out that according to the specialists’ judgment, CPC crude pipeline system is one of the most technologically advanced and safe in the world, thus enabling to provide high-quality services to the Shippers. Consistently high indicators of labor protection, industrial and environmental safety are evidence of that.

Eurasia Forum KAZENERGY is traditionally organized by Kazakhstan Association of Oil, Gas and Energy Companies. It is an efficient dialog platform providing actual assistance in creating favorable conditions for dynamic and sustainable development of fuel and energy complex. The Forum delegates include heads of relevant agencies, top managers of the world leading and Kazakhstani energy companies, leading experts on the industry aspects and mass media representatives.

As a follow-up to the function recommendations and proposals were developed aimed at further intensification of industry dialog, support to progressive advance of oil, gas and energy complex, strengthening of international cooperation.

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%.