CPC guarantees efficient and environmentally safe movement of crude oil

The Project is designed to increase the trunk pipeline capacity

CPC-R Board of Directors Meeting and CPC-R/CPC-K Shareholders Extraordinary General Meetings

20180926.jpgExtraordinary General Shareholder Meetings of Caspian Pipeline Consortium-R and Caspian Pipeline Consortium-K and Caspian Pipeline Consortium-R Board of Directors Meeting were held in Almaty (Kazakhstan) on September 25-26, 2018.

Nikolay Gorban, CPC General Director, reported on operations of the Consortium, including HSE aspects. Shareholders reviewed oil transport-related issues, financials and lessons learnt in implementation of the CPC Expansion Project.

From the beginning of the year to mid September the Consortium, including its contractors, worked nearly 9 mln hours without LTIs. CPC vehicles MVA-free mileage was 18.6 mln km for the same period.

Oil liftings at the CPC Marine Terminal for the period of January - mid September 2018 reached 42.6 MMT, which is 4 MMT more Y-o-Y. 387 tankers were loaded, which is 20 tankers more Y-o-Y.

Shareholder debt is repaid on a regular basis: the expected balance outstanding as of the end of 2018 is USD 2.4 bln. According to the current financial model calculations, the Shareholder debt will be repaid in full no later than in 2020.

The Shareholders also reviewed the CPC Pipeline System expansion within the next five years.

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%.