CPC guarantees efficient and environmentally safe movement of crude oil

The Project is designed to increase the trunk pipeline capacity

Historical date: CPC restructuring decision was made 20 years ago

On December 6, 1996, a decision was made to restructure Caspian Pipeline Consortium. That event became a turning point: Russia and Kazakhstan transferred existing pipeline assets valuated at their market value to the restructured entity. At the same time 50 percent of CPC shares were received by private oil producer companies in exchange for their commitment to fully finance the construction of the first phase of the Tengiz – Novorossiysk oil pipeline system and its commissioning.
“All participants of the negotiation team realized that it was necessary to engage the largest companies, such as Chevron and ExxonMobil, and then their example would be followed by others”, recalls Anatoly Shatalov, then the First Deputy  Minister of Fuel and Energy. “The negotiations were completed successfully. It is also important that as a result of the restructuring, in addition to Russia’s 34 percent share, another 20% of shares were received then by domestic oil companies, Lukoil and Rosneft".
The participation of the world’s leading  and gas companies in the CPC project did not only provide financing for the project, but also gave it an opportunity to apply modern technologies and equipment, international  standards for management, design, construction and operation of oil pipeline transport facilities.
A whole package of environmental protection measures was specially developed  for the CPC pipeline system. The cost of introducing the latest environmental protection technologies accounted for about 12% of the oil pipeline system construction budget. Significant funds were also earmarked to help host regions in developing  infrastructure, implementing large community-related programs in health care, education, culture and sport.
The construction of the oil pipeline began on November 17, 1999. The first tanker was loaded at the CPC Marine Terminal on October 13, 2001. 
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.
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%.