23 Nov 2010 16:25

CPC-R board nominates Platonov to head CPC

MOSCOW. Nov 23 (Interfax) - The board of directors of CPC-R has nominated Nikolai Platonov, the deputy director of foreign economic relations at Transneft , for the position of general director of the CPC consortium.

"The CPC-R board of directors approved a candidate. It will be examined by the board of directors of CPC-K tomorrow," Transneft Vice President Mikhail Barkov said.

Approval by the CPC-K board would confirm Platonov in the post. "If they approve Nikolai Platonov tomorrow, then he will immediately assume his new duties," Barkov said.

He did not say what assignment current CPC head Alexander Tarakanov would receive. "That question is being decided," he said.

Tarakanov was named to head CPC in April. Prior to the appointment he was the head of the Trans Balkan Pipeline B.V. project company, formed to carry out the project to build the Burgas-Alexandroupolis oil pipeline.

CPC operates the 1,511-kilometer Tengiz-Novorossiisk oil pipeline. CPC's sovereign shareholders are Russia with 31% (Transneft - 24%, CPC Company - 7%) and Kazakhstan with 20.75% (KMG - 19% and Kazakhstan Pipeline Ventures LLC - 1.75%). The rest of the consortium belongs to private companies: Chevron Caspian Pipeline Consortium Company (15%), Lukarco B.V. (12.5%), Rosneft-Shell Caspian Ventures Limited (7.5%), Mobil Caspian Pipeline Company (7.5%), Eni International (N.A.) N.V. (2%), BG Overseas Holding Ltd (2%) and Oryx Caspian Pipeline LLC (1.75%).

CPC exported 34.574 million tonnes of oil in 2009, 9.9% more than in 2008. The shareholders agreed to upgrade capacity on the pipeline late last year. A final investment decision is due on December 15, 2010.

The project, which will boost capacity to 67 million tonnes a year, will be completed in 2014. It will see addition of 10 pump stations (two in Kazakhstan and eight in Russia), six oil tanks near Novorossiisk, a third oil loading terminal, and replacement of 88 kilometers of pipeline in Kazakhstan. The project will cost an estimated $4.6 billion. The shareholders' agreement caps the pipeline tariff at $38 per tonne and the interest rate on borrowing at 6%.