CPC shareholders must change project agreement in autumn

Azerbaijan, Baku, July 12 / Trend S. Suleymanov /

Shareholders of the Caspian Pipeline Consortium (CPC) must make changes to the Project Agreement in autumn this year, JSC National Company KazMunaiGas said.

"Not only CPC shareholders, but the governments of Russia and Kazakhstan must make the appropriate changes to the existing agreements on the CPC (CPC shareholders agreement and other related agreements) before October 31, 2010," the press service of the company said.

A decision was made unanimously to authorize the CPC expansion project at a meeting of CPC-K shareholders and a meeting of the CPC-K Board of Directors in December 2009. As part of this decision, the shareholders approved an increase in the CPC capacity to 67 million tons per year until 2015, including Kazakh oil - 52.5 million tons per year.

KazMunaiGas chairman Kairgeldy Kabyldin said that Kazakhstan expects that the CPC expansion project will be completed by the beginning of the first phase of development of the deposit Kashagan.

"Only existing system of pipelines will be used in the first stage of development of Kashagan, which will give from 370,000-450,000 barrels per day," he said.

He recalled that according to the plans a project to expand the Caspian Pipeline Consortium (CPC) must be completed by the beginning of production at Kashagan in 2012 - early 2013.

"Moreover, today as a result of commissioning the oil pipeline from western Kazakhstan to western China, there will be additional capacity to transport Kashagan oil for export", he added.

He said that the existing corridor Aktau - Baku - the Black Sea will be used.

KMG is a shareholder in the CPC project with share holding of 20.75 percent (including 19 percent - the Kazakh government and 1,75 percent - "Kazakhstan Pipeline Ventures"). KMG, along with other stakeholders, realize the CPC expansion project. It is responsible for the expansion project in Kazakhstan.

In January-June, shareholders of the Caspian Pipeline Consortium (CPC) loaded 17.1 million tons of crude oil CPC Blend at the terminal "South Ozereika-2" compared to about 17.2 million tons during the same period last year. The CPC shareholders loaded about 34.6 million tons in 2009 at the terminal compared to about 31.5 million tons in 2008. The CPC shareholders shipped more than 32.6 million tons in 2007.