Caspian Pipeline Consortium confirms budget for 2018

Oil&Gas Materials 1 December 2017 10:21 (UTC +04:00)

Baku, Azerbaijan, Dec.1

By Nigar Guliyeva - Trend:

The budget of the Caspian Pipeline Consortium (CPC) was confirmed at a meeting of CPC-R Board of Directors and an Extraordinary General Meeting of CPC-K Shareholders in Moscow on Nov. 29, 2017.

The International Consortium’s Officers and Shareholders discussed CPC business operation results. The participants approved the Consortium’s 2018 Budget and reviewed the preliminary results of CPC Expansion Project implementation.

This year, five new Pump Stations were put into operation in 2017: two PSs in Astrakhan Oblast, one in Krasnodar Krai and one in Stavropol Krai and also one in Atyrau Oblast in Kazakhstan.

PS-2 in Kalmykia was tied in to the Tengiz-Novorossiysk crude pipeline system in late October 2017. Comprehensive testing of the equipment was commenced on Nov. 24, 2017 at the Station, which commissioning completes the Expansion Project. Once the facility is put into operation, the CPC pipeline system will reach its designed capacity of 67 M tons of crude oil per annum.

The CPC pipeline system is one of the largest investment projects with foreign capital in the energy sector in the CIS. The length of the Tengiz–Novorossiysk Pipeline is 1,511 km; it transports over two thirds of all Kazakhstan export crude, as well as crude from Russian oil fields, including 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: 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% and Oryx Caspian Pipeline LLC – 1.75%.