CPC Debottlenecking Program (DBNP) is a set of separate projects combined into a single Program implemented in the Russian Federation and the Republic of Kazakhstan with an objective of optimizing the current capacities of CPC Crude Oil Pipeline System.
The Program delivery will enable a flexible operation of injection points and allow for transportation of extra crude oil volumes (up to 72.5 MTA in RoK and up to 83 MTA in RF) with an optimal number of DRA at relevant pipeline operating factors.
For example: DBNP delivery and a range of modifications at CPC Marine Terminal will enable crude oil loading to tankers from three SPMs simultaneously. The Program also includes a range of projects aimed at improving of CPC Crude Oil Pipeline System
reliability level upon crude oil transportation volumes increase.
The Debottlenecking Program logically derives from CPC Expansion Project successfully completed in 2018 and is intended to enhance the shippers’ satisfaction while maintaining the high standards of safety and reliability of CPC Crude Oil Pipeline System.
*Capacity is increased post DBNP completion due to upgrade of hardware, optimizing DRA consumption without changing the main parameters.
Crude Oil Shipment
CPC Crude Oil Capacity needs further increase in a view of LLP Tengizchevroil plans to complete expansion of Tengiz field production (Future Growth Project) by late 2022 and, as a result, increased shipment of crude oil from RoK. The volumes of injected crude oil have been secured in the Consortium's Shareholders “Ship or Pay” Agreement.
Construction Schedule
In line with the Shareholders nominations, the Consortium shall complete by late 2022 all DBNP projects critical for enabling transportation of 83 MTA with optimized number of DRA. The projects aimed at reduction of DRA injection, improvement of pipeline system reliability (namely, use of frequency converters for the pump motors), as well as demolition of decommissioned equipment will take place through 2025.
Current DBNP Implementation Status
To date, CPC DBNP Project Team organization chart has been filled in with highly qualified specialists and managers in the number sufficient for successful Program delivery.
CPC has managed the development of the main scope of DBNP facilities design effort. All expert reviews have been successfully passed, all the permits required to proceed with construction and installation work have been received.
Agreements for supply of the main scope of long lead equipment have been signed. Upon completion of manufacturing and clearing of all necessary procedures, the equipment will be delivered to the Company sites.
Agreements for major CIW scopes performance and performance of specialized control systems and telecommunication scopes have been placed. Contractors have been mobilized at the Company facilities and perform construction and installation work.
DBNP Funding
The cost of DBNP projects implementation in the Russian Federation and the Republic of Kazakhstan is 599.9 MM USD. The project is being funded from CPC own funds from operating profit.
Social Responsibility
A range of CPC social projects and programs in the Russian Federation and the Republic of Kazakhstan are planned for implementation at the expense of DBNP budget funds.
Environmental and Industrial Safety
Environment protection and strict compliance with the environmental protection legislation of the Russian Federation and the Republic of Kazakhstan have become a priority while developing the design solutions. As part of its business concept, the Company recognizes that the value of the human life and health, zero harm to environment is above any economic profit. The works have been planned so that to minimize or fully avoid any negative environmental impact. To achieve this, the Company has completed a rigorous selection of contractors based on the results of which the contracts have been awarded to the best bidders that proven in progress of tender their competence in industrial, fire and environmental safety as well as emergency response. While managing the contractors, the Company adheres to the principles and recommendations of International Association of Oil and Gas Producers (IOGP) through a risk-based approach, leadership and continuous improvement.
Both the well proven technologies and equipment along with the latest international developments in crude oil pipeline transportation will be used in progress of construction. Pre-Start Safety Reviews for all newly installed equipment prior to oil-in is a must for all new DBNP facilities start-up. The process includes a comprehensive review of readiness against all safety aspects: starting with confirmation of applicable engineering disciplines compliance with design through actual verification of required resources availability at work location.
Occupational Health
While implementing DBNP projects, the Consortium has been proving its commitment to high standards in occupational health. CPC pays major attention not only to development of Safe Work Culture within the Company but is following up on forming the conscious safe behavior among the staff of all contractors involved in DBNP projects. Various motivational means are used for contractors’ personnel engagement in the process of improving of corporate goals and values along with their invitation in active participation in safety management.
While performing DBNP work, any CPC or contractor employee still has an unconditional authority to stop any unsafe work. This right further evolved in introduction of observation cards regarding labor conditions and safe work performance. It enabled all CPC and Contractors’ staff to promptly notify all unsafe work conditions, near misses at sites, as well as to make proposals for reducing the impact of hazardous and harmful production factors, improvement of labor conditions which is a key element of preventive risk management measures.