Meetings of the Caspian Pipeline Consortium managing bodies

The meetings’ agendas were focused on organizational, management, finance and business aspects of the Company’s ongoing performance. The Shareholders have reviewed and approved proposals aimed at improvement of the Company’s finance management system and maintaining high level of the CPC system’s technical reliability and safety. In particular, they have sanctioned pipeline recoating work at Kazakhstan pipeline segments having total length of 114 km.
In addition, the Shareholders have discussed preparations for commencement of Expansion construction work and agreed the measures necessary for implementation of Expansion decisions taken in December 2010.
The Expansion provides for the CPC pipeline system capacity increase to 67MMTA. The Expansion Project includes rehabilitation of the existing, and construction of 10 additional pump stations (2 in the Republic of Kazakhstan and 8 in the Russian Federation), six crude oil storage tanks near Novorossiysk, as well as third single point mooring at the CPC Marine Terminal and replacement of 88 km of pipelines in Kazakhstan.
CPC Shareholders: Russian Federation (represented by Transneft – 24% and CPC Company – 7%) – 31%; Republic of Kazakhstan (represented by KazMunaiGaz – 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%.