On 25 May 2018, a business meeting was held between the Caspian Pipeline Consortium and Chevron Corporation executives on the sidelines of the St. Petersburg International Economic Forum (SPIEF’2018).
The meeting was attended by Nikolay Gorban, CPC General Director, Vladimir Shmakov, General Manager, Operations, and Alexey Khodakov, Chief Accountant.
Chevron Corporation was represented by Jay Pryor and Bob Dastmalchi, Vice Presidents, Andrew McGrahan, President, Chevron Neftegaz Inc. and Sergey Kuznetskov, Vice President, Chevron Neftegaz Inc.
The corporate executives discussed matters related to interaction in the field of the transportation of hydrocarbon resources. CPC General Director Nikolay Gorban presented the results of the Expansion Project of the Tengiz-Novorossiysk pipeline system, tasks facing the consortium’s team and opportunities to further increase the capacity of the oil pipeline in the context of potential increased oil production in oil fields in the Western Kazakhstan.
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%.