CPC guarantees efficient and environmentally safe movement of crude oil

The Project is designed to increase the trunk pipeline capacity

Meetings of CPC Corporate Governance Bodies

CPC-R Board of Directors and Annual General Meetings of CPC-R and CPC-K Shareholders were conducted on 24-25 May 2022 in Nur-Sultan, the capital of the Republic of Kazakhstan.

In the course of the Board of Directors’ Meeting, General Director Nikolay Gorban delivered a report on the Company’s business status and health, safety and environmental protection results.

In 2021, 60,727,798 gross tons of crude oil were lifted from CPC Marine Terminal., almost 3% more than in 2020. The annual number of vessels processed near Novorossiysk was 585 tankers.

In 2022, the Consortium’s important achievements included over 14 million worked man-hours without incidents and over 31 million km of the total run of the motor vehicles without MVAs.

At its Meeting, CPC-R Board of Directors discussed the implementation progress of the Debottlenecking Program. According to the project schedule in 2023 the CPC crude pipeline throughput capacity will be increased up to approximately 80 million tons of oil per year.

CPC corporate governance bodies’ participants listened to the report on repairs of SPM-3 and SPM-2 damaged by storms. Particular attention was paid to the situation with the supplies of spares and equipment of foreign manufacturing and replenishment of emergency stock in the warehouses and CPC current litigation processes.

The Shareholders reviewed CPC-R and CPC-K Financial statements and passed resolutions on profit (dividends) distribution for 2021. Payments exceeding 42 billion Rubles (about 586 million US Dollars) will be made to the Shareholders in June-July 2022.

As a note, the Russian Federation President’s Decree No. 95 dated 05.03.2022 established a temporary procedure for fulfillment by residents of their credit, loan and financial instruments liabilities to foreign lenders related to hostile foreign states, the list of which was approved by the RF Government’s Resolution. Such liabilities shall be settled in Rubles through a type C bank account to be opened by the resident with a Russian credit institution in the foreign lender’s name.

Decree No.95 authorized the Ministry of Finance and Bank of Russia to issue permissions to residents to discharge their aforesaid liabilities directly in foreign currency in line with the former procedure, that is, without using the type C bank accounts.

As a follow-up to CPC’s appeals to the governmental bodies, the Commission of the Russian Federation Ministry of Finance in coordination with the RF Central Bank took a positive decision in terms of approval of the payment of dividends for the year 2021 in foreign currency to CPC Shareholders without using the type C accounts (except for ROSNEFT-SHELL CASPIAN VENTURES LIMITED).

In the course of the Company’s governance bodies’ meetings, CPC-R Board of Directors’ and Audit Commission’s memberships were elected and auditors for 2022 fiscal year were approved.

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%.