On August 27, Nikolay Brunich, General Director of Caspian Pipeline Consortium, and Alexander Zhilkin, Governor of Astrakhan Oblast, signed a supplementary agreement to the Cooperation Agreement between CPC-R and Astrakhan Oblast Government. The document provides for an additional investment by the Consortium at the amount of RUR 145 million which will be allocated under the Expansion Project for construction of new social facilities in Astrakhan Oblast.
The signing ceremony was also attended by members of Astrakhan Oblast Government, representatives of the Consortium and heads of the municipal territorial entities traversed by the CPC trunk pipeline.
Alexander Zhilkin noted that CPC-R was an Oblast’s reliable partner for many years and, being a socially responsible company, paid close attention to the safety and environmental aspects of its business activities. The Oblast Head expressed special gratitude to the Consortium for its contribution to development of the social infrastructure of the Oblast Districts. In his turn, Nikolay Brunich assured all the present that the said cooperation between the Oblast and CPC would continue and also informed of the forthcoming commissioning of the newly constructed pump stations of A-PS-4A and A-PS-5A in Krasnoyarsky and Narimanovsky Districts.
The total amount of funds allocated by CPC-R for implementation of social projects in Astrakhan Oblast during the period from the beginning of company operations in the region through completion of the Expansion Project will exceed RUR 500 million.
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), six new storage tanks (100,000 cu.m each) in addition to the existing four 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 amount of the Project investments will be US$ 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% и Oryx Caspian Pipeline LLC – 1.75%