On 27-28 February 2024, meetings of CPC corporate governance bodies were conducted: CPC-R Board of Directors and Extraordinary General Meeting of CPC-K Shareholders.
CPC General Director Nikolay Gorban made a report on the Company’s business status and HSE performance. The Shareholders discussed the 2023 results, including financial performance and the plans for the current year.
In 2023, the Company’s personnel and Contractors’ representatives worked over 15 mln man hours without injuries and incidents, the motor vehicles ran over 31 mln km without MVAs.
General Director reported on the performance results of the Company’s Strategic plan in the corporate Safety Culture area, specifically, in the Leadership standard improvement.
63.5 M tons of crude oil were lifted at the Marine Terminal in 2023. This result exceeded the 2019 record despite an increase in the duration of unfavorable meteorological conditions for oil lifting. It was noted that in 2019, the downtime due to storms in the seawaters of CPC's operating area amounted to 463 hours, while in 2023 they amounted to 856 hours.
In the first two months of this year (as of 26 February), 11 mln tons of CPC Blend were delivered through CPC pipeline system and 100 tankers were loaded.
In 2023, representatives of supervisory agencies conducted 23 audits and inspections at CPC-R facilities, and another inspection was conducted by the Safety Committee Department of EMERCOM of Kazakhstan Republic. All identified findings were closed.
Implementation of the Debottlenecking Program (DBNP) is being successfully completed at the Consortium’s facilities, work is in progress to dismantle the old equipment. The DBNP completion allowed to bring the Tengiz - Novorossiysk crude pipeline throughput capacity to 72.5 mln tons per year transported through Kazakhstan territory and to 83 mln tons per year transported through the Russian Federation territory.
The meetings participants listened to the updates on the status of the Consortium’s crude pipeline line bearing capacity and the implementation progress of the CPC pipeline system reliability improvement program. It was also noted that about 3,000 training exercises were conducted at CPC facilities in 2023 in operation of mechanical process and power equipment, instrumentation and automation systems, line pipe operation and fire safety, civil defense, emergency and oil spill response.
Based on the results of two years of participation in tax monitoring, CPC-R was given a high assessment of the tax monitoring efficiency. According to the Interregional Inspectorate for Major Taxpayers No. 1 of the FTS of Russia, CPC-R is ranked 11 among 100 companies. CPC-R and CPC-K profit before tax amounted to approximately $2.3 bln.
High financial performance allows the Consortium to conduct systematic charitable activities in CPC host regions. In Russia in 2023, 42 charity projects and programs were implemented in health care, education, culture, ecology, sports and transport for the total exceeding 610 million rubles. In Kazakhstan, eight projects and programs for the total of 1.5 bln tenge were completed for the same period. In 2023, CPC-K was named the best socially responsible enterprise in the Republic of Kazakhstan and became the prize-winner of the Golden statuette of the Republican Paryz award.
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 oil, and 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 PJSC Transneft (trust management) – 24 %, IC CPC Company LLC – 7%, JSC NC 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%.