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CPC guarantees efficient and environmentally safe movement of crude oil

The Project is designed to increase the trunk pipeline capacity

Caspian Pipeline Consortium: 2014 Results

The record quantity of crude oil – in total, more than 40 M tons – were pumped through the CPC System in 2014. Crude lifting from the Marine Terminal has increased by 7.3 M tons, or by 22.2%. In total, over 400 M tons of crude oil has been received in the CPC System since the beginning of the operation.
The pumping record has, to large extent, become possible thanks to commissioning of the facilities constructed and reconstructed as Phase 1 of the CPC crude pipeline expansion project. Specifically, a third Single Point Mooring was commissioned at the Marine Terminal in February, allowing for an increase of the quantity of the crude oil lifted during the annual de-commissioning of one of the SPM. The reconstructed Astrakhan PS, Komsomolskaya PS and Kropotkin PS were commissioned in April.
The Consortium’s tariff revenues amounted to $ 1 B 395 M, which is 21.9 % higher than the 2013 level.
As part of the charities, in addition to CPC traditional programs, the Year-of Culture projects were implemented. Thus, in Krasnodar Krai, together with Historical Archeological Open-Air Museum named after E. Felitsin,  a display was arranged called “Culture of cooperation, excavations of ancient monuments within CPC zone”, which included the archeological finds of various historical eras, discovered on the territory where the new crude pipeline system facilities were constructed. Municipal culture establishments in Astrakhan Oblast, Stavropol and Krasnodar Krais, received certificates for musical instruments, professional audio, lighting and stage equipment for the total value of about RUR 42 M. The year ended with the implementation of the largest scale social project of CPC: a kindergarten was opened in the village of Glebovka for 230 kids. The Consortium allocated almost RUR 140 M for its construction.
2014, in general, turned out to be a high-performance year for the Consortium. Significant progress was achieved in the Expansion Project implementation, the work at all sections, including the territory of Kazakhstan, was intensified. The achieved results allow for planning completion of the construction of all facilities by late 2015. Commissioning of new facilities next year will allow for an increase of the system throughput capacity up to 45-50 M tons. Given the construction scope and a great number of personnel engaged, the matters of ensuring operation safety and environmental protection continue to be the Company’s priorities.
CPC pipeline system is one of the largest investment projects in the energy industry with participation of foreign capital on the CIS territory. The length of the pipeline connecting the oil fields in Western Kazakhstan with the Marine Terminal near Novorossiysk is 1,511 km. CPC Marine Terminal is equipped with single point moorings which allow for safe tanker lifting at a considerable distance from the shore, also when the weather conditions are unfavorable.
The Expansion Project includes rehabilitation of 5 existing and construction of 10 additional pump stations (2 in the Republic of Kazakhstan and 8 in the Russian Federation), construction of six new crude oil storage tanks (each of 100,000 cu.m capacity), in addition to four existing tanks, near Novorossiysk and a third SPM at the CPC Marine Terminal, and also the replacement of an 88 km pipeline section in Kazakhstan with a larger diameter pipe. The total investments in the Project will amount to $ 5.4 billion.
CPC Shareholders: Russian Federation (represented by Transneft – 24% and CPC Company – 7 %) – 31%; Republic of Kazakhstan (represented by KazMunayGaz  – 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%.