CPC guarantees efficient and environmentally safe movement of crude oil

The Project is designed to increase the trunk pipeline capacity

SPIEF 2018: Agreement Between CPC and VTB NSPF

On May 24, 2018, Nikolay Gorban, General Director, Caspian Pipeline Consortium, and Larisa Gorchakovskaya, General Director, VTB NSPF, signed an agreement of non-state pension support between the Pension Fund and CPC.

The signing ceremony was held at Petersburg International Economic Forum - SPIEF-2018.

The agreement is aimed at enhancing the efficiency of the non-state pension support program for CPC employees and further improvement: of their social security system.

Before the document signing, Nikolay Gorban emphasized: “Throughout the years of CPC pipeline system operation a strong, united, highly professional team has formed, of which both the Management Team and the Consortium’s Shareholders are justifiably proud. Professional team of like-minded people is our main asset, as important as the used state-of-the-art technologies and advanced equipment. The Consortium’s Management realizes its responsibility not just for the present but for the future of its employees; our target is to support stability and ensure continuity in the team. That is why, development of Company-wide programs aimed at enhancement of CPC personnel social security system is an obvious priority to us”.

In her turn, Larisa Gorchakovskaya noted: “Corporate pension program is one of the efficient tools used in the best management practices. We are glad to cooperate with a socially responsible employer, who has been implementing the pension program for its employees for many years. This tool will help to increase the Company’s employees’ future pensions”.

As per the reliability and profitability rating, VTB NSPF is one of the most successful non-state pension funds in Russia. The results of the first quarter of 2018 demonstrate that the mandatory pension insurance savings have increased by 27% and amounted to RUR 182.4 Billion. The non-state pension support reserves have amounted to RUR 3.3 Billion. As of reporting date, the property value has increased by 28% since the beginning of the year and reached RUR 192.6 Billion.

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%.