Caspian Pipeline Consortium

The CPC pipeline with total length of 1.510 km connecting Kazakhstan oil field Tengiz with the oil terminal “South Ozereevka” on the Black Sea (near port of Novorossiysk). Since the beginning of operation of the pipeline (2001) 265.8 million tons were transported, including 223.6 million tons of Kazakhstan oil, 36 million tons for 2010 with the share of Kazakhstan oil amounting to 29.9 million tons. During the 1st half of 2011 the volume of oil transported through the CPC system was 17.5 million tons, including Kazakh oil amounting to 15 million tons.

The participants of the CTC project are: the Russian Government (OJSC “AK” Transneft”) - 24%, the RK Government (“NC “KMG” JSC) - 19%, CTC “Company” (Russia) - 7%, mining companies, “Chevron Caspian Pipeline Consortium Companies” - 15%, “Lukarco BV” (hereinafter - Lukarco) - 12.5%,

“Mobil Caspian Pipeline Company” - 7.5%, “Rosneft-Shell Caspian Ventures Limited” - 7.5% “ENI International (NA) NV S.ar. l.” - 2%, “BG Overseas Holdings Limited” - 2%, “Kazakhstan Pipeline Ventures CCW” (hereinafter – the “KPV”) - 1.75% and “Oryx Caspian Pipeline Co., Ltd.” - 1.75%.

With increasing oil production at Tengiz and Karachaganak fields and the planned commissioning Kashagan field, one of the pressing issues of the CPC project is to increase the capacity of the pipeline.

On December 15, 2010, CPC shareholders unanimously approved the final investment decision on the CPC Expansion Project. Within the framework of this decision financial, economic and technical parameters of the expansion project are determined, including safety and environmental protection. The project involves increasing the capacity of CPC from 28.2 million tons/year to 67 million tons/year, including up to 52.5 million tons/year at its Kazakhstan section.

On July 1, 2011, in Atyrau, the construction works opening ceremony was conducted on the expansion project. Expansion is planned in three stages with its full completion of the project in 2015.