CPC governing bodies discuss Transneft proposals to increase financial return of project

MOSCOW. Nov 27(Interfax) - The governing bodies of the Caspian Pipeline Consortium (CPC) discussed proposals aimed at increasing the financial return of the project at their recent meetings, one of the consortium shareholders, Transneft , said.

A meeting of the board of directors of JSC CPC-R and extraordinary general meeting of shareholders of JSC CPC-K were held on November 26-27 in Dubai.

Representatives of CPC shareholders also considered long-term investment projects, including a large-scale import substitution program for pumping equipment, as well as amendments to CPC social policies to improve work conditions for employees in Russia and Kazakhstan.

As reported, the CPC exported over 53 million tonnes of oil from the beginning of the year to October 31.

The consortium did not disclose data for January-October 2023. It transported and shipped 63.47 million tonnes of oil in the whole of 2023, up 8.1% from 2022. The updated forecast for 2024 is to transport about 65.2 million tonnes of oil, 7% below the previous target of 70 million tonnes.

The 1,511 km CPC pipeline connects oil fields in western Kazakhstan and Russian fields on the Caspian shelf with the marine terminal in Novorossiysk. The system is the main export route for Kazakh oil, accounting for more than 80% of Kazakhstan's volumes pumped through the pipeline.

Currently, CPC is capable of transporting approximately 72.5 million tonnes of oil per year from Kazakhstan's territory and up to 83 million tonnes via Russia.

CPC's shareholders are the Russian Federation with 31%, with Transneft managing 24% and 7% on the balance sheet; KazMunayGas with 19%; Kazakhstan Pipeline Ventures LLC with 1.75%; Chevron Caspian Pipeline Consortium Company with 15%; Lukoil International GmbH with 12.5%; Mobil Caspian Pipeline Company with 7.5%; Rosneft-Shell Caspian Ventures Limited with 7.5%; BG Overseas Holding Limited at 2%; Eni International N.A. N.V. S.ar.l. with 2%; and Oryx Caspian Pipeline LLC with 1.75%.