CPC: XXI Century Project

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Timothy Daniel
7 years ago
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1 CPC: XXI Century Project

2 CPC Pipeline Route Map SPM Vertical Steel Tanks with Floating Roof Kropotkin PS Astrakhan PS Komsomolskaya PS Atyrau PS Tengiz PS 2

3 CPC Shareholders Oryx Caspian Pipeline Ltd 1.75% Kazakhstan Pipeline Ventures 1.75% Eni International N.A. N.V. S.AR.L. 2% BG Overseas Holdings Ltd 2% Rosneft-Shell Caspian Ventures Limited 7.5% Russia 24% CPC Company 7% KMG 19% Mobil Caspian Pipeline Company 7.5% Lukarco B.V. 12.5% Chevron Caspian Pipeline Consortium Company 15% 3

4 CPC System Development December 1996 CPC Shareholders Agreement was signed; November 2000 the pipeline line section laying was completed; October 2001 first tanker was loaded at the Marine Terminal; April 2004 the pipeline officially commenced commercial operation; August M tons of crude oil lifted since the commencement of operation; December 2010 Amendment Agreement relating to the Shareholders Agreement of 1996 was signed. CPC Shareholders approved the Final Investment Decision for the Project to expand CPC pipeline system capacity from 28.2 to 67 M tons of crude oil per year. The Expansion Project implementation was launched; 4

5 Crude Pipeline Reconstruction to Increase the Throughput Capacity Project objective to increase CPC system throughput capacity from 28 to 67 M tons per year; The necessity of the Expansion is supported by growing volumes of crude oil production and deliveries from Kazakhstan from Tengiz, Karachaganak and Kashagan fields; The target completion date of the Expansion is mid-2016; The Project approved budget is $5.4 B; The Project implementation will allow to almost double the revenues: up to $2.3 B per year, thus accelerating the Shareholders loan repayment and starting dividend payment. The financing is provided out of the Consortium s own funds (Base Business profit, Shareholders loan repayment deferral). 5

6 Reconstruction Basic Parameters Characteristics Currently After the Expansion Project Completion Approximate annual oil pumping volume 28 (33-35 M tons with DRA) 67 (76 tons with DRA) MT Tank Farm (100,000-t capacity tanks) 4 10 SPM 2 3 PS 5 15 Tariff revenues $ 1.1 Billion $ 2.3 Billion Expansion Project is to be completed in mid

7 Construction Management CPC Chernomortransneft Caspian Pipeline Ventures Chevron Neftegaz PSs in Russia PSs in Kazakhstan Replacement of an 88-km pipeline section MT Tank Farm SPM-3 SCADA 7

8 CPC Pipeline Route Map PS-8 SPM VSTFR (4,6,8) VSTFR (7,9,10) PS-7 Kropotkin PS PS-5 PS-4 PS-3 Astrakhan PS PS-2 А-PS-5А Komsomolskaya PS А-PS-4А А-PS-4 А-PS-3А Atyrau PS Tengiz PS Phase 1 increasing the throughput capacity to 35 M tons per year reconstruction of five existing PSs, construction of three tanks at the Marine Terminal, a single point mooring and replacement of the pipeline section at KP 116- KP 204; Phase 2 increasing the throughput capacity to 48 M tons per year construction of five new PSs; Phase 3 increasing the throughput capacity to 67 M tons per year (76 M tons with drag reducing agent) construction of five new PSs and three tanks at the Marine Terminal. 8

9 CPC System Development February SPM-3 was put into operation; April 2014 reconstructed Astrakhan PS, Komsomolskaya PS and Kropotkin PS were put into operation in the Russian Federation ; June million tons of crude oil lifted since the commencement of operation; August 2015 equipment at PS-3 (Republic of Kalmykia) and PS-7 (Krasnodar Krai) in the Russian Federation was tested; September 2015 reconstructed Tengiz PS and Atyrau PS were put into operation in the Republic of Kazakhstan. September 2015 construction of three new tanks, each of 100,000 м³ capacity, was completed. 9

10 Environmental and Industrial Safety The Consortium s particular approach to industrial safety, labor protection and environmental protection. CPC has selected the most state-of-the-art industry technologies and highly reliably equipment of the best work manufacturers for the construction. Crude oil transportation and lifting process is managed in accordance with the international standards of environmental and industrial safety, this being regularly confirmed by the certificates of three key international standards: ISO 9001:2008 Quality Management System, ISO 14001:2004 Environmental Management System and OHSAS 18001:2007 Occupational Health and Safety System. 10

Corporate Social Responsibility Support to socially significant spheres of the society life and humanitarian development of the human capital assets in the regions crossed by the pipeline route.

11 Corporate Social Responsibility Support to socially significant spheres of the society life and humanitarian development of the human capital assets in the regions crossed by the pipeline route. 8% 22% 28% Culture Education Physical culture and sports 13% 3% 10% 16% Health care Programs for veterans and invalids Aid to orphans Municipal transport From 1998 to 2015 CPC social investments in the Russian Federation exceeded 2.0 Billion Rubles, In the Republic of Kazakhstan they exceeded 4.0 Billion Tenge. 11

Annual report 2012. «KazTransOil» JSC

Annual report 2012. «KazTransOil» JSC Annual report «KazTransOil» JSC Development of export and transit potential of Kazakhstan is one of key directions of state policy. The work on creation of new and expansion of existing export pipeline