Inspection of CPC pump station under construction in Kalmykia

Мая 26, 2017

On May 25, 2017 Nikolay Gorban, General Director of CPC paid an inspection visit to pump station PS-2 being constructed in Kalmykia where he had a meeting with representatives of construction contractors and discussed the status of construction. The pump station is located in the south of Kalmykia, at 845 km of Tengiz-Novorossiysk pipeline.

At the moment, they are landscaping the station territory, constructing the access road and starting-up and commissioning the pump station equipment. It is planned that in the 3rd quarter of 2017 the pump station piping will be ready for oil in, once crude oil is in, CPC will conduct comprehensive testing of the pump station. It is expected that the pump station will be commissioned before the end of 2017.

Currently, CPC has two pump stations in Kalmykia – PS Komsomolskaya and PS-3. The former pump station was upgraded in the spring of 2014 as part of the Expansion Project. PS-3 was commissioned in November 2015.

Since 2013 through 2016, CPC spent almost 14 billion rubles on construction and upgrade of the Expansion facilities. In 2017 the funding volume is expected to be around 450 million rubles.

For reference:

CPC pipeline system is one of the largest investment projects in the energy industry with participation of foreign capital on the CIS territory. The length of the pipeline connecting the oil fields in Western Kazakhstan with the Marine Terminal near Novorossiysk is 1,511 km. CPC Marine Terminal is equipped with single point moorings which allow for safe tanker lifting at a considerable distance from the shore, also when the weather conditions are unfavorable.

The Expansion Project includes rehabilitation of 5 existing and construction of 10 additional pump stations (2 in the Republic of Kazakhstan and 8 in the Russian Federation), six new storage tanks (100,000 cu.m each) in addition to the existing four near Novorossiysk and a third SPM at the CPC Marine Terminal, and also

the replacement of an 88 km pipeline section in Kazakhstan with a larger diameter pipe. The total amount of the Project investments will be US$ 5.4 billion.

CPC Shareholders: Russian Federation (represented by Transneft – 24% of and CPC Company – 7%) – 31%; Republic of Kazakhstan (represented by KazMunayGaz – 19% of 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% of and Oryx Caspian Pipeline LLC – 1.75%.