On August 4, 2023, a working meeting was held
between Gorban Nikolay, General Director, Caspian Pipeline Consortium and
Alikhan Smailov, RoK Prime Minister in Astana.At the beginning of the meeting, the General
Director informed the Head of the Government about the incident that occurred
near the water area of CPC Marine Terminal related to destruction of the
non-crew surface vessel by efforts of the Russian Navy. Nikolay Gorban
emphasized that oil offloading to tankers was carried out in a regular mode,
equipment was not damaged. They also discussed security measures additionally
taken by the Consortium members to ensure uninterrupted oil transshipment at
the CPC Marine Terminal.
The parties discussed completion of the
Debottlenecking Program (DBNP) by the Consortium aimed at the increase in the
throughput capacity of the Tengiz-Novorossiysk oil pipeline up to 82 million
tons of hydrocarbons per year at the point of tanker loading. There was also
considered the issue of competitiveness of alternative routes for oil exports
from the Republic of Kazakhstan to world markets in comparison with the
Tengiz-Novorossiysk oil pipeline.
The Director General advised the Prime Minister
that CPC has now reached mechanical readiness for pumping the increased volumes
of oil from Kazakhstan.
It was noted that in July 2023, one of the
largest and most important DBNP facilities - new Lease Automatic Custody
Transfer (LACT) at the CPC Marine Terminal near Novorossiysk was completed. The
new LACT will allow CPC to lift oil from three single point mooring units (SPM)
simultaneously, if needed. In particular, this will help raise oil lifting
after forced oil lifting standby due to stormy weather conditions in spring and
fall.
Nikolay Gorban and Alikhan Smailov also
considered issues related to provision of the uninterruptible power supply of
CPC facilities in Atyrau Region. There
are head pump stations (receiving oil from shippers) - PS Tengiz and PS Atyrau
and intermediate pump stations - PS Isatai and PS Kurmangazy there.
Besides, within the frame of the working
meeting the Prime Minister and the Consortium Head discussed issues regarding
the CPC taxation practice in the Republic of Kazakhstan as well as payment of
dividends to CPC-K JSC shareholders.
The General Director informed the RoK
Government Head that in July 2023 the Consortium for the first time paid out
dividends separately to the RoK CPC-K shareholders.
At the Annual General Shareholders Meeting
(AGSM) held on May 30-31, 2023, it was decided to distribute the net profit
generated according to the reporting data of CPC-K under IFRS for 2022 in the
amount of USD 174 mln.
Distributed dividends for a total amount of USD
151 836 750 were paid to shareholders in the following currency:
·
USD 66 054 750
·
KZT
14 780 464 800 that corresponds to the distributed amount of
dividends USD 33 060 000.
·
RUR
4 262 378 257 that corresponds to the distributed amount of
dividends USD 52 722 000.
According to the decision of CPC shareholders,
there was determined the possibility of paying dividends in a currency other
than US dollars, if such payments do not contradict the legislation of the
Republic of Kazakhstan. After receipt of the relevant request from the
shareholders, the dividend amounts were recalculated into the equivalent on the
date of the decision
When paying dividends in accordance with the
requirements of the law, tax was withheld for transfer to the budget of the
Republic of Kazakhstan in the total amount of USD 6 068 250.
Upon receipt of the necessary information,
CPC-K will pay dividends to two more shareholders in the total amount of USD 14
485 500 after withholding of tax USD 1 609 500 pursuant to AGSM’s
Minutes of Meeting dd. May 31, 2023.
Earlier dividends were distributed to CPC-R JSC
shareholders at the territory of the Russian Federation based on the results of
the Company's performance in 2022 in the total amount of RUR 43 bln. before tax
withholding, which corresponds to USD 533 mln. at the exchange rate as of the
date of the shareholders' decision, taking into account the recommendations of
the Intergovernmental Commission of the Russian Ministry of Finance, approved
by the RF Central Bank in terms of the right of international shareholders to
receive dividends in a currency other than the national RF currency.
Given the amounts already approved for payment
according to 2022 results, the forecast final dividend payment amount in 2023
is USD 1.34 bln.