OREANDA-NEWS. September 21, 2012. Caspian Pipeline Consortium-R Board Meeting and Caspian Pipeline Consortium-K Extraordinary Shareholders Meeting were held on September 18-19 in Almaty.

The meetings reviewed matters pertaining to financial and economic performance of the Company and received an HSE report. Shareholders amended the Regulation on CPC-K Employees Service Awards.

Shareholders also received detailed information on construction under the Expansion Project. It was resolved to review this matter further at the meetings of CPC bodies of management scheduled for November 2012.

Shareholder representatives confirmed the budget approved in 2010 when the Expansion Project FID was signed. The budget sanctioned at the FID stage amounts to USD 5.4 bln.

CPC-R Board also resolved to terminate the authority of Mr. Robert James, Deputy General Director, Finance, and to appoint Berend Hazelaar, a Rosneft-Shell nominee, to this position.

CPC Pipeline System is one of the major investment energy projects with foreign participation in the CIS. The pipeline that transports crude oil from the oil fields of Western Kazakhstan to the Marine Terminal in Novorossiysk is 1,511 km long. CPC Marine Terminal is equipped with single-point moorings, which enable safe loading of tankers at a considerable distance from the shore, including in adverse weather conditions.

The Expansion Project envisages rehabilitation of 5 existing and construction of 10 additional pump stations (2 in the Republic of Kazakhstan and 8 in the Russian Federation), six near Novorossiysk and an SPM at the CPC Marine Terminal to supplement 4 existing crude oil storage tanks. It also includes replacement of a 88 km pipeline section in Kazakhstan with a larger diameter pipe. Total investment in the Project will be USD 5.4 billion.

CPC Shareholders: Russian Federation (represented by Transneft - 24% and CPC Company - 7%) - 31%; Republic of Kazakhstan (represented by KazMunaiGas - 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%.