CPC guarantees efficient and environmentally safe movement of crude oil

The Project is designed to increase the trunk pipeline capacity

CPC 2009 results press release

Caspian Pipeline Consortium (CPC) lifted 34.574 million tons of crude oil for export through its Marine Terminal near Novorossiysk in 2009, up 9.9% on 2008. 319 tankers were loaded from CPC’s single point moorings in 2009.

A total of over 209 million tons (1.6+ billion bbl) of crude oil have been lifted since the pipeline was commissioned in October 2001, without any accidents and in full safety and environmental protection compliance.

In December 2009 CPC Shareholders approved an Expansion Project execution plan including a package of organizational, technical, commercial and financial arrangements. Phased practical implementation of the agreements reached commences in January 2009.

CPC Expansion which provides for CPC’s capacity being increased up to 67 MTA is estimated to be fully completed in 2014. The Expansion Project provides for building 10 additional pump stations (2 in Kazakhstan and 8 in Russia), six crude oil tanks near Novorossiysk and a third single point mooring at the CPC Marine Terminal, as well as the replacement of an 88 km pipeline section in Kazakhstan.

CPC Shareholders:
Russian Federation (represented by Transneft – 24% and CPC Company - 7%) – 31%; Republic of Kazakhstan (represented by KazMunaiGaz – 19% and Kazakhstan Pipeline Ventures LLC – 1.75%) – 20.75%, 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.