CPC guarantees efficient and environmentally safe movement of crude oil

The Project is designed to increase the trunk pipeline capacity

Meetings of CPC Corporate Governance Bodies

A meeting of the Caspian Pipeline Consortium-R JSC Board of Directors and an Extraordinary General Meeting of Caspian Pipeline Consortium-K JSC Shareholders took place in Istanbul on September 19-20, 2023.

The meeting was opened with CPC General Director Nikolay Gorban’s report on the Consortium’s operations, occupational health, industrial safety and environmental protection indicators.

As of July 2023, the Company’s and contractors’ personnel worked almost 9 million man hours without injuries and incidents. Mileage of CPC and contractors’ motor vehicles reached 18 million kilometers.

The Consortium has significantly ramped up crude transportation volumes versus last year's indicators. In mid-September, 2023, 45.3 million tons loaded to 415 tankers was exported. Year on year, similar indicators reached 41.5 million tons and 382 tankers, respectively.

In the first 8 months of 2023, the system availability factor was approximately 97%. Since the beginning of 2023, more than 21,000 scheduled maintenance tasks were performed at site facilities and on the line section, under work permits. In May, June and August, maintenance of SPM-2, SPM-3 and SPM-1 was delivered, respectively. Work included replacement of expansion joints and marine hoses.

The Shareholders also reviewed progress of some of the CPC pipeline debottlenecking program (DBNP) closeout activities. Specifically, it was noted that two new RVS-20000 vertical steel tanks will be commissioned in September 2023 at Tengiz PS. Completion of external power supply facilities construction effort at Tengiz PS is scheduled for December 2023.

Shareholders heard and discussed updates on the Reliability Steering Committee operations, current status of the Tengiz–Novorossiysk Pipeline bearing capacity, banking service and tax payments, and interfaces with foreign vendors and contractors.

Special emphasis was placed on line pipe replacement matters at certain sections, development of design documentation and construction of new single point moorings (SPMs).

Shareholders pointed out that operations of all key CPC divisions had been efficient, including those of the Operations Department, Finance, Preparation and implementation of construction projects department. Meeting attendees also noted the effort taken by CPC to provide for stable payment of dividends in the current environment and a successful completion of the Debottlenecking Program, which ensured timely preparedness of the pipeline to receive large volumes of oil from the main fields in the Republic of Kazakhstan.

That said, the Consortium's management underlined that consistent efforts to upgrade production facilities, enhance reliability of the Tengiz-Novorossiysk pipeline system and ensure incident-free operations of all CPC facilities will be pursued as per recommendations of the shareholders and approved plans.

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%.