CPC guarantees efficient and environmentally safe movement of crude oil

The Project is designed to increase the trunk pipeline capacity

CPC Took Part in Comprehensive ER Drill

On 23 May 2018, the CPC ER resources took part in a comprehensive ER drill within the Novorossiysk Municipal Entity held and commanded by the General Emergencies Authority of the Krasnodar Krai.

The drill involved the CPC-R MT non-professional emergency/rescue unit, Novorossiysk emergency/recovery point, CPC Security, АО TsASEO professional emergency/rescue unit, fire unit of ООО Kuban Fire Service for the CPC MT facilities. The event was attended by representatives of the Novorossiysk Municipal Entity Administration, Novorossiysk Emergencies Authority and others. All in all, 149 men and 18 vehicles were engaged.

According to the drill script, an illegal tap in the area of Yuzhnaya Ozereevka village at KP 1503 of the CPC oil pipeline caused loss of integrity of the Tengiz-Novorossiysk trunk oil pipeline, followed by an oil spill onto the terrain and fire. The conventional spill area was 250 m2.

The oil spill message was received at 08.00 by the Novorossiysk Unified Duty Dispatch Service of the Krasnodar Krai General Emergencies Authority. In order to specify the scale of the occurrence, the CPC reconnaissance squad was sent to the assumed emergency site along with the emergencies patrol teams, which confirmed an oil spill up to 80 tons. The emergency was categorized as municipal level.

Upon arrival at the emergency site, the CPC ER units deployed special equipment to contain and gather the spilt oil and oily soil, including retaining walls to prevent further spread of the oil spill, absorbing check dams, knockdown tanks, oil gathering system.

In the course of the work, an additional condition was injected of spilt oil fire in the area of 250 m2. The fire was extinguished by two fire units. The drill commanders also set a task of evacuating a person allegedly injured during fire extinguishing.

The drill participants practiced reconnaissance of an emergency site, warning of population, rescue of the injured, oil spill response and fire extinguishing. Caspian Pipeline Consortium also simulated oil pipeline shutdown to perform emergency, repair and recovery work, oil pipeline repairs, deployment of knockdown tanks for temporary

storage of oil and oil-containing waste.

Thus, the comprehensive drill checked readiness of the CPC ER resources for an emergency on the oil pipeline and efficiency of interaction among all ER parties.

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%.