BP Makes Clear its Intention to Sell its Share of CPC Soon: Chevron
Azerbaijan, Baku, 17 October / Trend / ВР made clear to the stockholders of the Caspian Pipeline Consortium (CPC) that it will sell its share of the project in near future, after which shareholders will be able to coordinate expansion of oil pipeline's capacity to 67mln tons, Andrew McGrahan, Chevron Vice-President for CPC Asset Management, said to journalists on 16 October, according to RosBusinessConsulting news agency.
As to whether BP's withdrawing from the project is connected with stockholders' position on coordinating the capacity of CPC, he said "ВР made clear for other stockholders that an agreement on joint ventures (through which the company possesses stocks of CPC) will be reached soon".
McGrahan said ВР is now keeping on negotiating to sell its shares, and Chevron is not involved. Now, ВР is the only obstacle on the way for all stockholders to sign a memorandum on expansion of CPC, he said. As is well known, the positions of CPC and ВР stockholders do not coincide on financing to expand the capacity of the CPC pipe system. A memorandum on the issue has not yet been coordinated, since ВР believes the project must be financed through external loans, while other shareholders insist on own investing.
According to McGrahan, Oman which plans to sell its share of CPC anyway backs expansion of the pipeline. "Oman also made clear it will back the decision and will sign the memorandum whenever the negotiation of sale of its stocks is over," he said.
Chevron representative again hoped that coordination and signing of a memorandum on expansion of CPC will take place in near future.
The project sides hope that will happen by the end of 2008.
Earlier ВР (owns 19% of Kazakstan Pipeline Ventures LLC with KazMunayGaz and 46% of Lukarco B.V. with LUKoil) was reported intending to sell its share of CPC. However, the company has first to offer its stocks to its partners on joint ventures through which it participates in the consortium, i.e. KazMUnayGaz and LUKoil.
According to unofficial reports, withdrawing from CPC is also considered by another participant - Oman (owns 7% of CPC). Both Russia and Kazakhstan, which have the privilege to purchase the stocks of another CPC shareholder, confirmed that they had received Oman's proposal and got interested. In September, 2008, Russian Deputy Energy Minister Stanislav Svetlitski assumed that the 7% would be divided between Russian and Kazakhstan as 4% and 3% respectively, but added that Russia had applied for the whole 7%.