CPC guarantees efficient and environmentally safe movement of crude oil

The Project is designed to increase the trunk pipeline capacity

CPC - MAIN EXPORT ROUTE OF KAZAKHSTAN

Magzum Mirzagaliev, RK Energy Minister: “Today, this project is a vivid example of successful multilateral cooperation. Crossing Kazakhstan and Russia and connecting the coasts of the Caspian and Black Seas, it comprises many shareholders from UK, Italy, USA, Russia and Kazakhstan. It should be noted that, despite such a broad shareholder structure, project management is highly efficient.

Since the oil pipeline commissioning in 2001 to date, Kazakhstan has exported more than 745 million tons of crude oil. This route accounts for more than two thirds of Kazakhstan crude oil exports.

CPC construction has enabled a significant increase in the crude oil production at such major oil fields as Tengiz, Karachaganak and commencement of Kashagan development. Currently, a stage-wise expansion of CPC has brought the oil pipeline throughput up to 67 million tons of crude oil per annum. Moreover, the task has been set to increase the throughput to 80 million tons of crude oil per annum.”

Nikolay Gorban, CPC General Director: “In June 2019, CPC started the implementation of the Debottlenecking Program which will facilitate the optimization of the transportation process and acquisition of extra capacity for oil pumping. In Kazakhstan, the important milestones of the above activities will be the upgrading of the pumps and all support systems at Tengiz PS. After completion of the said Program, CPC will be able to pump up to 72.5 million tons of crude oil per annum from Kazakhstan with the optimized use of drag reducing agents and up to 83 million tons of crude oil per annum together with the crude oil of Russian shippers.”

“Occupational health, industrial safety and environment protection are always in the focus of the Company, because the CPC top priority is health and safety of its employees, contractors and population living nearby the operating facilities... By the results of 2019, 2020 and the first half of 2021, we have zero injury and MVA indicators. CPC has surpassed the level of 35 million manhours without industrial injuries and 97 million km run by the corporate vehicles without MVA. This has become possible due to the development of a comprehensive Safety Culture Program, where we have articulated and combined all life saving rules for each employee.”

“In 2020, the Company purchased the equipment for the Zhuldyzai Medical Rehabilitation Center, a CT scanner and ambulances for some district hospitals. On an annual basis, gifts are presented to schoolchildren within the campaigns “CPC - to the first-year schoolchildren”, “New Year together with CPC” and charity creative arts festival “CPC to gifted children” is held. Just in the Atyrau Region, charity projects amounting to about USD 3 million are implemented every year.”

“From the first days of its establishment, the Consortium has been paying close attention to environment protection, allocating a fixed percentage of its profits for these purposes. In order to minimize industrial emission of pollutants, technical solutions preventing soil contamination with oil have been implemented at all CPC Tank Farms. Floating roofs have been installed to reduce hydrocarbon vapor fraction emissions by 90%... Since 2016, efforts have been undertaken in Kazakhstan to save and increase the saiga population. Satellite collars, an unmanned aerial vehicle have been purchased to conserve and study the saiga and other Republic’s fauna representatives.”

“On 10 June 2021, following the resolution of the Board of Directors, Caspian Pipeline Consortium, for the first time in its history, paid out the first tranche of dividends to the Company Shareholders for Q IV 2020 and Q I 2021. The total amount of the dividends for the above period reached USD 665 million. USD 548 million of the first tranche were distributed among the CPC Shareholders.”

“Payment of dividends on the CPC shares became possible and proceeded due to a full repayment of the debt to the Company Shareholders, which had originated from the construction of Tengiz-Novorossiysk pipeline system and implementation of its Expansion Project. In 2020, owing to its stable financial indicators, CPC paid out ahead of schedule to the Shareholders the last part of the debt equaling USD 990 million.”

Kevin Lyon, General Director of Tengizchevroil LLP:

“Our participation in the pipeline has become the basis for a strong partnership between TCO and CPC, which has generated a general value for both companies. The CPC investments in the expansion of the pipeline throughput have provided export of 100% of the TCO crude oil output via the pipeline to the international markets. At that, about 45% of the CPC volumes originate from TCO. Over that time, TCO has had stable access, as well as safe and reliable system for its products transportation via CPC.”

«E²nergy», 07 October 2021 ​