CPC guarantees efficient and environmentally safe movement of crude oil

The Project is designed to increase the trunk pipeline capacity

Meeting of the CPC and Kalmykia Heads

On March 28, 2019, there was a meeting between Nikolay Gorban, General Director of Caspian Pipeline Consortium, and Batu Khasikov, Acting Head of the Republic of Kalmykia. This working meeting was also attended by Sergey Morozov, Acting Governor of Astrakhan Oblast, who, when presenting the CPC Head, noted that the Consortium was an honest and reliable partner in the region for many years.
In the course of talks with Batu Khasikov, Nikolay Gorban congratulated him with the appointment and wished successful and fruitful work, further strengthening of the Republic’s economic potential and improvement of the wellbeing of the population.
Then the company and region heads discussed pending matters of implementing the Cooperation Agreement between CPC and Republic. We remind you that the new document was signed in March 2017, and it determined the interrelations between the parties in the sphere of enhancement of the industrial and transportation infrastructure of the Republic of Kalmykia and Consortium’s facilities, improvement of the Republic’s financial/economic position and regional investment climate.
Under the Agreement, CPC provides active financial support to the social sphere of Kalmykia in the area of healthcare, culture, sports and education, and implements its programs of supporting the most vulnerable community strata.
Over the period of cooperation between CPC and Republic of Kalmykia from 1998 through 2018, the Consortium allocated more than 800 million Rubles for the region’s social needs. Just in 2018, CPC provided 256.6 million Rubles under the regional social programs, including construction of a Children’s Supplementary Education Center in Iki-Burul and a primary school building in Artesian Village.
Among other charity projects of 2018, we may single out the following ones:
• Procurement of 7 ambulance vehicles of Class B for the Republican Medical Emergency Station;
• Procurement of 6 long-transfer buses for republican and municipal sports entities, and also for the Republican Rehabilitation Center designed for children and youngsters with limited capabilities;
• Procurement of a mobile treatment/diagnostic complex (X-Ray Diagnostics) with the value of approx. 18 million Rubles;
• Over 12 million Rubles allocated for the traditional CPC charity programs of CPC to First-Graders, New Year and Christmas Holidays with CPC, and for the environmental program of saiga population protection.
• Besides, representatives of the Republic of Kalmykia took an active part in the creativity competition of CPC to Talented Children that took place in the districts traversed by the CPC pipeline and in Elista, and in the final gala concert in Moscow.
In 2019, within its regular charity program, CPC plans to allocate approx. 72 million Rubles for various social projects.
Nikolay Gorban and Batu Khasikov agreed to continue the constructive interaction between the Consortium and management of the Republic to provide for further progressive social and economic development of Kalmykia and improvement of the population life quality.
We note that a 200 km segment of CPC Tengiz-Novorossiysk Pipeline runs across the Republic of Kalmykia.
The pipeline pressure in Kalmykia is supported by three pump stations: the newly constructed PS-2 and PS-3, and Komsomolskaya PS.
Komsomolskaya PS also receives crude oil from the Russian Caspian shelf fields into the CPC pipeline system.
CPC’s tax payments to the budget of Kalmykia grow with good dynamics. E.g., the Consortium paid 1.1 billion Rubles in 2017, while the 2018 figure reached 1.6 billion Rubles.
FYI:
CPC Pipeline System is one of the major investment projects in energy sector with participation of foreign capital in the CIS. The length of the Tengiz–Novorossiysk Pipeline is 1,511 km; it transports over two thirds of all Kazakhstan export crude, as well as crude from Russian oil fields, including the Caspian Region. CPC Marine Terminal is equipped with three Single Point Moorings (SPM) that allow to load tankers safely at a significant distance offshore, also amid poor weather conditions.
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% and Oryx Caspian Pipeline LLC – 1.75%.