On 24 May 2018, in the course of the proceedings of the St. Petersburg International Economic Forum, SPIEF-2018, Nikolay Gorban, CPC General Director, met with Andrey Tokarenko, Head of the Sogaz Oil Pipeline Transport Insurance Directorate.
The parties discussed CPC facility and liability insurance matters and cooperation prospects with CPC pipeline system transportation volumes increased up to 67 million tons per annum upon the completion of the CPC Expansion Project. CPC-R and SOGAZ have been working together since 2008.
In that time, SOGAZ has proved itself to be a professional partner owning necessary resources and experience in insurance and risk management.
Key insurance types for CPC include:
- property insurance;
- third party liability insurance;
- mandatory third party liability insurance of hazardous industrial facility owners;
- small boat insurance (Marine Terminal motorboat).
There has been a number of property insurance claims settled by CPC-R jointly with SOGAZ.
In the course of the meeting, it was stated that the Directorate, providing a broad range of services in the insurance market apart from industrial facility insurance, sees a potential for further developing its interactions both with CPC and its employees. As a note, SOGAZ has been providing fronting services on a gratis basis for the last 5 years.
The meeting was also attended by Mikhail Grishankov, Deputy General Director, Russian Government Relations, Kairgeldy Kabyldin, Deputy General Director, Kazakhstan Government Relations, Evgeny Popov, Deputy General Director, Legal, and Alexey Khodakov, Chief Accountant.
The Directorate was established on the basis of the core business unite of the TRANSNEFT Insurance Company who jointed SOGAZ Group in the fall of 2013. It specializes in a comprehensive insurance of pipeline transport enterprises & suppliers, contractors of oil industry, port sector vendors and contractors. Key services the Directorate offers to customers include insurance of property, construction and installation, cargoes, motor vehicles and specialist equipment, liability and personal employee insurance.
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%.