CPC guarantees efficient and environmentally safe movement of crude oil

The Project is designed to increase the trunk pipeline capacity

RoK Prime Minister had a working meeting with CPC General Director

IMG-20230804-WA0001.jpgOn 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.IMG-20230804-WA0000.jpg

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.