On 28 February - 1 March 2023, meetings of CPC
corporate governance bodies - Board of Directors of Caspian Pipeline
Consortium-R and an Extraordinary General Meeting of the Shareholders of
Caspian Pipeline Consortium-K - were held in Astana, the capital of Kazakhstan.General Director Nikolay Gorban delivered a
report on the Company’s business status and health, safety and environmental
protection performance results.
It was noted that in 2022 CPC Marine Terminal
lifted 58.7 mln tons of oil delivered by the crude pipeline and the total
volume of oil delivered by the crude pipeline since its commissioning exceeded
823 mln tons.
The Consortium achieved all its target
zero-injury indicators. In 2022, the Company’s and contractors’ personnel
worked over 17.2 mln man hours without injuries and incidents, the motor
vehicles ran over 33.4 mln km without MVAs. During the discussion of the
HSE Strategic Plan up to 2024, the critical role of the Leadership system in
further progressive development of the Safety Culture in the Consortium was
highlighted.
Last year, CPC successfully passed
recertification of Health, Safety and Environmental Protection (HSE) Management
System in accordance with international standards ISO 14001:2015 and ISO
45001:2018. Nikolay Gorban emphasized that the largest number of scheduled (13)
and unscheduled (10) drills were conducted in CPC units in 2022 resulting in
approval of updated OSR Plans at some facilities of the Company.
The results of 32 scheduled and unscheduled
audits and inspections by supervisory and regulatory authorities in 2022 became
an important topic of the meetings. The majority of the findings have already
been closed, the remaining ones are being closed in accordance with the
established procedures and due dates.
A report on the Consortium’s financial
performance was presented to the Shareholders in the course of the meetings.
The high performance allows CPC to consistently continue paying dividends to
the Shareholders. In particular, in total 66 billion rubles were paid to CPC-R
Shareholders, including the Russian Federation, in 2022.
CPC-R tax payments in 2022 amounted to 23.5
billion rubles. In Kazakhstan, CPC-K paid taxes of 37.5 billion tenge, or
almost 82 million USD for the same period.
The meetings participants reviewed the issues of
bank services of CPC business and possibilities of attracting major foreign
banking institutions for cooperation.
The Shareholders’ representatives and
Consortium’s Management examined the progressive implementation of the
Reliability Improvement Program for CPC pipeline system.
Views were exchanged on the situation with
foreign-made equipment supply for CPC needs to support safe and reliable
operation of Tengiz-Novorossiysk crude pipeline. It was pointed out that 96.8%
of the stock items for which a search for alternative manufacturers and
suppliers was required had already been found in the Russian Federation.
However, there are some important items for which there is only an operating
stock. To support long-term replenishment of inventory, CPC continues to study
the market and conducts survey in this direction.
In addition, particular attention was paid to the
Update on the Debottlenecking Program (DBNP) work and ongoing tasks facing the
DBNP participants. It was noted that facilities at Tengiz PS and Astrakhan PS
already commissioned prepared the Consortium to receive additional volumes of
crude from the Shippers. CPC pipeline system mechanical capacity has reached
for the first time 72.5 mln tons transported from Kazakhstan and up to 81.5 mln
tons transported through the territory of the Russian Federation.
In the course of the meetings, the Shareholders
were also informed of the significantly increased number of cyber attacks on
the Company's information resources and the measures taken in this regard.
For
information:
CPC Pipeline
System is one of the major investment projects with foreign capital in energy
sector in the CIS. The length of the Tengiz – Novorossiysk pipeline is 1,511
km. This route transports over two-thirds of all Kazakhstan export crude, as
well as crude from Russian oil fields, including those in the Caspian Region.
CPC Marine Terminal is equipped with three Single Point Moorings (SPM) that
allow to load tankers safely at a significant distance offshore, also amid poor
weather conditions.
CPC Shareholders:
Federal Agency for State Property Management represented by Transneft (trust
management) – 24%, CPC Company – 7%, KazmunayGas – 19%, Kazakhstan Pipeline
Ventures LLC – 1.75%, 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. S.ar.l. – 2% and Oryx Caspian Pipeline LLC – 1.75%.