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Caspian Pipeline Consortium announces terms of expansion project

Oil&Gas Materials 29 November 2013 16:35 (UTC +04:00)
The Caspian Pipeline Consortium will complete the expansion project’s phase 1 in Russia by mid-December. Phase 1 work in Kazakhstan is planned to be completed in October next year

Baku, Azerbaijan, Nov. 29
By Elena Kosolapova - Trend: The Caspian Pipeline Consortium will complete the expansion project's phase 1 in Russia by mid-December. Phase 1 work in Kazakhstan is planned to be completed in October next year, the consortium reported on November 29.

"Paperwork needed to commission the upgraded facilities in Russia for operation should be signed in January to early February," the consortium said.

Meanwhile, CPC General Director Nikolai Brunich said the consortium would be ready to receive crude from the Kazakh Kashagan field using its reserve capacities and also increase the crude injection quota at the Tengiz pumping station by May 2014.
Such announcements were made at the meeting of Kazakh Oil and Gas Minister Uzakbay Karabalin with the management of CPC, Russian Transneft, Kazakh KMG and U.S. Chevron on November 28.

The main focus of the meeting was the execution of the CPC Expansion project. Attendees discussed the current project status including some problem issues related to schedule delays, particularly on sites in Kazakhstan. CPC shareholders presented their view on the situation and set challenges to the company for 2014 and looking forward.
It was decided that all contractors involved in constructing facilities in Kazakhstan should develop and approve a revised integrated project execution and facilities commissioning schedule by mid-December.

CPC pipeline system is one of the largest investment projects in the energy industry with participation of foreign capital on CIS territory. The length of the pipeline connecting the oil fields in Western Kazakhstan with the Marine Terminal near Novorossiysk is 1511 kilometres.

The Expansion Project includes rehabilitation of five existing and the construction of 10 additional pump stations, two in Kazakhstan and eight in Russia, six new storage tanks (100,000 cubic meters each) in addition to the existing four near Novorossiysk and a third single-point mooring at the CPC Marine Terminal. Also the replacement of an 88 kilometre pipeline section in Kazakhstan with a larger diameter pipe. The total amount of the project investments will stand at $5.4 billion.

CPC Shareholders are Russia represented by Transneft - 24 per cent and CPC Company - 7 per cent at 31 per cent; Kazakhstan represented by KazMunaiGas - 19 per cent and Kazakhstan Pipeline Ventures LLC - 1.75 per cent at 20.75 per cent; Chevron Caspian Pipeline Consortium Company - 15 per cent, LUKARCO B.V. - 12.5 per cent, Mobil Caspian Pipeline Company - 7.5 per cent, Rosneft-Shell Caspian Ventures Limited - 7.5 per cent, BG Overseas Holding Limited - 2 per cent, Eni International N.A. N.V. - 2 per cent and Oryx Caspian Pipeline LLC - 1.75 per cent.

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