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CPC guarantees efficient and environmentally safe movement of crude oil

The Project is designed to increase the trunk pipeline capacity


With regard to a message in the account of Svetlana Rodionova, Head of the Federal Service for Nature Management Supervision (RosPrirodNadzor/RPN), and on the agency’s website regarding the size of damage from the 7 August 2021 incident in the Black Sea, we advise as follows:

- Caspian Pipeline Consortium cannot agree with ’s estimate of the amount of damage from the effects of the incident;

- CPC has not yet received any official notification or any other document from the agency with any specified amount of damage; having received the official notification, it will appeal against it through courts;

- CPC proceeds on the basis that the methodology used by RPN to calculate the volume of crude oil spilled offshore into the Black Sea is incorrect, which could lead to factual errors in the calculations;

- complexities of damage calculation may be related to design peculiarities of the incident-stricken equipment unit (SPM) and the tanker loading technology used, which provides for the use of a 5 km section of a subsea oil pipeline;

- the volume of crude oil actually spilled in the sea is calculated, the data being available to regulatory and investigation authorities;

- the monitoring of the Black Sea offshore area, including bottom sediments, and coastal areas, which has been conducted since 7 August inter alia by the Federal Service for Oversight of Consumer Protection and Welfare (RosPotrebNadzor) and other specialist laboratories indicates that no Maximum Allowable Concentrations have been exceeded by any parameters, which puts in doubt the correctness of the estimation made.

For information:

The CPC Pipeline System is one of CIS largest energy investment projects that involves foreign capital. The length of the Tengiz – Novorossiysk pipeline is 1,511 km. This route moves over two thirds of all Kazakhstan export oil along with crude from Russian fields including those in the Caspian region. CPC Marine Terminal is equipped with three Single Point Moorings (SPM), allowing tankers to be loaded safely at significant distance offshore, including in poor weather conditions

CPC Shareholders: Federal Agency for State Property Management represented by Transneft (trustee) – 24%, CPC Company – 7%, KazMunayGas – 19%; Kazakhstan Pipeline Ventures LLC – 1.75%, 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%.