CPC guarantees efficient and environmentally safe movement of crude oil

The Project is designed to increase the trunk pipeline capacity

Developing cooperation : Meetings at the CPC Moscow Office

CPC General Director Nikolay Gorban met with Republic of Kalmykia government chairman Igor Zotov at the CPC Moscow Office on 29 July. The parties discussed a wide range of issues related to cooperation between CPC and the republic. CPC has two existing pump stations in Kalmykia, Komsomolsk and PS-3, with the third one, the new PS-2, closing to completion.

The commissioning of new facilities and the build-up of CPC’s capacity enable it not only to create new jobs for local residents and increase tax revenues to regional budget, but also consistently develop large community-related programs. Since it came to Kalmykia, the company has already allocated over RUR 400 million for these purposes. CPC finances such annual charity events as CPC to First Graders and CPC to Gifted Children and allocates funds to furnish equipment, furniture and transport to republican health, education and sport establishments.

Also on 29 July, the CPC General Director held a working meeting with Rustam Khalitov, Astrakhan Region Industry, Transport and Natural Resources Deputy Minister. It was stated that the cooperation between CPC and the Astrakhan Region where one existing pump station, Astrakhan, is already in operation, and another two, APS-4A and APS-5A are under construction as part of the Expansion Project, will be 20 years old next year.

Since 1998 up to present CPC-R has signed over twenty contracts and agreements with the Astrakhan Region Government for support in areas of most significance for the local community, such as health, culture, sports institutions, kindergardens and schools, as well as charity aid to necessitous public. Currently, there are to supplementary agreements in place, in addition to the main one, for the implementation of CPC-R’s social program under the Expansion Project - one for RUR 150 million dated 28/07/11 and the other for RUR 145 million dated 27/08/2015.

For reference.

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%.