CPC guarantees efficient and environmentally safe movement of crude oil

The Project is designed to increase the trunk pipeline capacity

Shareholders of Caspian Pipeline Consortium – representatives of Chevron corporation visited CPC Marine Terminal

On September 21, 2016, Nikolay Gorban, General Director of Caspian Pipeline Consortium and Mark Ross, President of Chevron Shipping Company visited CPC Marine Terminal near Novorossiysk. In this trip they were accompanied by Andrew McGrahan, Chairman of CPC-R Board of Directors, President of Chevron Neftegaz Inc., Eurasia Business Unit, and Sergei Kuznetsov, Chevron Neftegaz Inc. Vice President for Government Relations.

The Shareholders representatives visited offshore and shore facilities as well as the Tank Farm. Nikolay Gorban, General Director of emphasized that this year after commissioning of three new 100,000 ton tanks the total Tank Farm capacity will be one million tons what will make it the biggest tank farm in Russia.

Commenting his visit to CPC Marine Terminal Mark Ross said: “I was very much impressed by the quality of the built facilities, professionalism of CPC employees and the attention they give to occupational safety.”

The meeting between CPC General Director and President of Chevron Shipping Company took place in the Marine Terminal office.

Chevron Shipping Company is a subsidiary of Chevron and the core business of the company is international marine transportation. Chevron Shipping Company operates a fleet of tankers for transportation of liquefied petroleum gas and charters additional vessels for transportation of crude oil LPG, refined oil products and chemicals. The company is the center of the of marine functional expertize of Chevron and it provides consulting services in the area of marine engineering, design development, construction and operation within the framework of several international projects of the corporation.

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%.