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Resumption of Oil Lifting From Marine Terminal

Weather normalization permitted Caspian Pipeline Consortium to resume oil lifting from the Company’s Marine Terminal on 22 February 2023.

As a reminder: oil lifting was suspended on 19 February due to the actually stormy weather conditions and respective warnings issued by the Harbor Master of the Novorossiysk Maritime Port.

Oil is loaded via the Single Point Moorings located five km from the coastline with strict compliance with industrial and environmental safety requirements. The SPM design allows for loading during adverse weather conditions when traditional onshore oil lifting systems are forced to suspend their operation.

At the same time, weather limitations that apply to the SPM exceed the similar requirements for the coastal berths. For example, mooring operations at the SPM and hose lifting on a tanker are carried out with waves up to 2.5 m.

To be emphasized: CPC adheres to an uncompromising position on the environmental protection and industrial safety during the operation of the Consortium’s Marine Terminal equipment in the Black Sea and the prevention of oil spill emergencies. On the basis of this attitude and following the relevant regulations, oil lifting was stopped during the aforesaid period, the same will also occur in the future if similar conditions arise.

For information:

CPC Pipeline System is one of the major investment projects with foreign capital in energy sector in the CIS. The length of the Tengiz – Novorossiysk pipeline is 1,511 km. This route transports over two-thirds of all Kazakhstan export crude, as well as crude from Russian oil fields, including those in 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: Federal Agency for State Property Management represented by Transneft (trust management) – 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. S.ar.l. – 2% and Oryx Caspian Pipeline LLC – 1.75%.​