Annual General Meetings of CPC-R and CPC-K Shareholders were held on 28-29 May 2024 in Samarkand (Republic of Uzbekistan).
In the course of the event, General Director N. Gorban reported on the Company’s business status and performance in occupational health, safety and environmental protection. This year, almost 5.5 mln. man-hours were worked without injuries and incidents, including contractors, and the motor vehicles ran above 11.3 mln. km without MVAs.
From 1 January through to 24 May 2024, 244 tankers were loaded, which exceeded the last year indicator by five vessels, 26.7 mln. tons of oil were exported versus 25.92 mln. in 2023.
At the same time, according to the updated forecast, a 7% reduction of oil transportation is expected as compared to the budgeted indicators based on the Shippers’ preliminary nominations.
Thus, delivery from Tengiz field assumes reduction by 7.9 mln. tons but an increase by 3.3 mln. tons from Kashagan field, the total deviation from the planned volumes being 4.8 mln. tons.
In this connection, the Shareholders discussed the Shippers’ nomination campaigns and their actual performance as a factor that impacts receipt of profit by the Consortium and payment of dividends to CPC participants.
The Meetings also reviewed the progress of the finalizing actions of the Debottlenecking Program (DBNP). Specifically, construction and installation work was completed at the facilities of Kegok 220 kV substation and 220kV HVL expansion at Tengiz PS.
At Astrakhan PS, as part of the ICP mainline pump building removal, electric engines and mainline pump units were mothballed and packed. Installation of variable frequency drives was completed at PS-4 and is in progress at PS-3 and PS-5. The current schedule of the DBN implementation provides for completion of work at all DBN facilities in the Russian Federation and the Republic of Kazakhstan, including SCADA and Marine Terminal facilities (removal of LACT meter and installation of a new PCS (pressure control station) and SRS (surge relief system) before February 2026.
As a reminder: on 31 December 2022, a notification was sent to CPC Shareholders that as part of the DBN implementation the construction of all facilities at Tengiz PS and Astrakhan PS was completed and they were put into operation, those facilities influencing CPC pipeline system ability to accept additional oil volumes from Tengiz field in the Republic of Kazakhstan for transportation. The Consortium’s pipeline system is currently capable of transporting approximately 72.5 mln. tons of oil per year from Kazakhstan territory and up to 83 mln. tons of oil per year via the Russian Federation.
As part of a new large-scale project - Program for construction of external power supply - pre-design survey, field, geological and engineering surveys and development of main design solutions for APS-4A, Komsomolskaya PS and Kropotkin PS are being conducted.
In addition, the project to upgrade CPC crude pipeline line pipe is being implemented smoothly. At the 17-km segment at the Komsomolskaya PS inlet, as of 14 April 2024, the readiness exceeded 60%, the new segment is scheduled to be tied in in October 2024.
The meetings participants also discussed the progress of design and other activities to prepare single point moorings, SPM-1 and SPM-2, in the seawater of the Consortium’s Marine Terminal near Novorossiysk for replacement in the nearest years.
As a reminder: as part of the annual actions to ensure safe operation of the mooring units, work on scheduled replacement of 54 hoses at SPM-2 started on 26 April 2024. This operation takes approximately 70 days under favorable weather conditions.
The Shareholders also reviewed and approved the Annual financial statements and profit distribution of CPC-R and CPC-K for 2023, CPC-R and CPC-K Shareholders approved the auditor firms for 2024 fiscal year.
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%, Lukoil International GmbH - 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%.