OREANDA-NEWS. March 27, 2012. CPC-R Board of Directors meeting was held in Moscow on March 20, 2012.

The meeting was focused on the review of the CPC Expansion Project matters. In particular, the attendees have discussed and generally agreed the proposals regarding further improvement of the Project management structure aimed at ensuring prompter decision-making within the framework of the technical team and optimizing allocation of management and control functions among different Expansion Project participants.

In addition, the meeting participants have reviewed a number of aspects of Consortium's ongoing financial and business performance including additional measures to provide safety at the Brownfield and Greenfield CPC facilities.

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 with a larger diameter pipe. The total amount of the Project investments will be USD  5.4 billion. It is planned to complete Expansion in 2015.

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%.