CPC guarantees efficient and environmentally safe movement of crude oil

The Project is designed to increase the trunk pipeline capacity

CPC Corporate Governance Bodies Had Meetings in Astana

On 28 February - 1 March 2023, meetings of CPC corporate governance bodies - Board of Directors of Caspian Pipeline Consortium-R and an Extraordinary General Meeting of the Shareholders of Caspian Pipeline Consortium-K - were held in Astana, the capital of Kazakhstan.

General Director Nikolay Gorban delivered a report on the Company’s business status and health, safety and environmental protection performance results.

It was noted that in 2022 CPC Marine Terminal lifted 58.7 mln tons of oil delivered by the crude pipeline and the total volume of oil delivered by the crude pipeline since its commissioning exceeded 823 mln tons.

The Consortium achieved all its target zero-injury indicators. In 2022, the Company’s and contractors’ personnel worked over 17.2 mln man hours without injuries and incidents, the motor vehicles ran over 33.4 mln km without MVAs.  During the discussion of the HSE Strategic Plan up to 2024, the critical role of the Leadership system in further progressive development of the Safety Culture in the Consortium was highlighted.  

Last year, CPC successfully passed recertification of Health, Safety and Environmental Protection (HSE) Management System in accordance with international standards ISO 14001:2015 and ISO 45001:2018. Nikolay Gorban emphasized that the largest number of scheduled (13) and unscheduled (10) drills were conducted in CPC units in 2022 resulting in approval of updated OSR Plans at some facilities of the Company.

The results of 32 scheduled and unscheduled audits and inspections by supervisory and regulatory authorities in 2022 became an important topic of the meetings. The majority of the findings have already been closed, the remaining ones are being closed in accordance with the established procedures and due dates.

A report on the Consortium’s financial performance was presented to the Shareholders in the course of the meetings. The high performance allows CPC to consistently continue paying dividends to the Shareholders. In particular, in total 66 billion rubles were paid to CPC-R Shareholders, including the Russian Federation, in 2022.

CPC-R tax payments in 2022 amounted to 23.5 billion rubles. In Kazakhstan, CPC-K paid taxes of 37.5 billion tenge, or almost 82 million USD for the same period.

The meetings participants reviewed the issues of bank services of CPC business and possibilities of attracting major foreign banking institutions for cooperation.

The Shareholders’ representatives and Consortium’s Management examined the progressive implementation of the Reliability Improvement Program for CPC pipeline system.

Views were exchanged on the situation with foreign-made equipment supply for CPC needs to support safe and reliable operation of Tengiz-Novorossiysk crude pipeline. It was pointed out that 96.8% of the stock items for which a search for alternative manufacturers and suppliers was required had already been found in the Russian Federation. However, there are some important items for which there is only an operating stock. To support long-term replenishment of inventory, CPC continues to study the market and conducts survey in this direction.

In addition, particular attention was paid to the Update on the Debottlenecking Program (DBNP) work and ongoing tasks facing the DBNP participants. It was noted that facilities at Tengiz PS and Astrakhan PS already commissioned prepared the Consortium to receive additional volumes of crude from the Shippers. CPC pipeline system mechanical capacity has reached for the first time 72.5 mln tons transported from Kazakhstan and up to 81.5 mln tons transported through the territory of the Russian Federation. 

In the course of the meetings, the Shareholders were also informed of the significantly increased number of cyber attacks on the Company's information resources and the measures taken in this regard.

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%.