CPC guarantees efficient and environmentally safe movement of crude oil

The Project is designed to increase the trunk pipeline capacity

On CPC-R Board of Directors’ Meeting

On 30 May 2023, CPC-R Board of Directors’ Meeting was conducted in Astana, the capital of the Republic of Kazakhstan.

The meeting was opened with CPC General Director Nikolay Gorban’s report on the Company’s business status and health, safety and environmental protection results.

As of 30 May 2023, the Consortium lifted approximately 27.1 mln tons of crude oil from the Marine Terminal, loading 249 tankers. On 26 May this year, the 8-thousandth oil tanker in the history of the pipeline system's operation departed from CPC Single Point Mooring.

It was noted that in the first five months, the Consortium's important indicators were 6.2 million accident-free man-hours worked and 12.5 million kilometers of total vehicle mileage without MVAs.

The governance bodies’ members reviewed the Safety Culture development, implementation of CPC HSE Strategic Plan, success of implementation of leadership practice, the outlined steps to achieve the personal goals of CPC Officers. It was emphasized that setting up Safe Culture development committees at the Consortium’s facilities had positive impact on the HSE performance and general environment in PS and Regional offices’ teams.

There was also a report on closing of regulatory authorities’ findings received after the unscheduled field inspections of Rosprirodnadzor, Rostekhnadzor and Rostransnadzor. As of 30 May 2023, all findings are cleared.

The Board of Directors’ Meeting discussed the progress of the Debottlenecking Program (DBNP) implementation. It was noted that the work had been completed in 2022 APS-4A, APS-5A, PS-2, Komsomolskaya PS and Atyrau PS, with some stations ahead of schedule. Having given a positive assessment of the DBNP implementation progress, the Shareholders discussed the status of the final DBNP activities.

CPC governance bodies’ members were informed of the work going on the Single Point Moorings to replace hoses, expansion joints and marine breakaway couplings with the service life expiring in 2023. This work was successfully completed at SPM-2 in April. On 29 May 2023, CPC proceeded to work at SPM-3.

The organizational and technical measures for the planned replacement of SPM-1 and SPM-2, also with engagement of Russian design engineering companies, were discussed.

CPC Officers reported to the Shareholders on the ongoing activity to search for alternative manufacturers and suppliers for 126 product line items of foreign-made equipment, the supply of which had been discontinued. As of today, Russian manufacturers have been found for 121 alternative items.

CPC's ongoing consistent efforts to reduce emissions of volatile organic compounds (VOC) during oil tanker loading became another topic for discussion. CPC has already amended its internal regulations referring to loading operations, and is discussing possible innovations in respect of reducing VOC emissions in close contact with public and experts.

Cyber security issues were also brought to the attention of the Shareholders: from June last year to May this year about 380 incidents were registered in this area. Cyberattacks are carried out using, among other things, social engineering tools. The CPC information infrastructure sustained no damage.

The governance bodies’ members were presented with the proposals to enhance the effectiveness of personnel work, in particular to improve working conditions and material incentives for CPC-K and CPC-R rotational personnel. Aspects of employees’ prospective joining the trade union organization in the Republic of Kazakhstan and signing a collective agreement were discussed.

The Shareholders also reviewed CPC-R JSC and CPC-K Financial Statements. In addition, the Shareholders were presented with a report on the current status of the Consortium’s trunk pipeline bearing capacity and the progress status of the CPC Pipeline System Reliability Program execution status.

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%.

​​ ​​