OREANDA-NEWS. During his business trip to the Marine Terminal on September 3 CPC General Director Nikolay Brunich checked the construction progress of additional oil storage tanks and auxiliary facilities of the Expansion Project Phase 1.

After the visit to the construction site a meeting was conducted with participation of top managers of the Project Management Company and Contractors. The Consortium's Head noted significant progress in the construction over the past two months since the previous inspection visit. Successful performance of the established Working Group for prompt management of the Tank Farm construction was named as a catalyst of positive changes in the work progress.

Nikolay Brunich emphasized that, despite the apparent progress the approved schedule should be rigidly followed and, if necessary, available labor resources should be mobilized, with maximum engagement of people at the facilities. Given the scope and complexity of the work performed and also a great number of workers engaged in the construction, particular attention should be given to the safety matters.

In the course of the meeting it was pointed out that the Contractor should deliver three tanks (100,000 cu m each) to the Operations Department in accordance with the following timeline: Tank 8 - in December this year, Tanks 4 and 6 - in January and February 2015, respectively.

It was also noted that given the adjusted construction schedule the earlier approved commissioning schedules should be brought in compliance, including Expansion Project Phase 2.

CPC pipeline system is one of the largest investment projects in the energy industry with participation of foreign capital on the CIS territory. The length of the pipeline connecting the oil fields in Western Kazakhstan with the Marine Terminal near Novorossiysk is 1,511 km. CPC Marine Terminal is equipped with single point moorings which allow for safe tanker lifting at a considerable distance from the shore, also when the weather conditions are unfavorable.

The Expansion Project includes rehabilitation of 5 existing and construction of 10 additional pump stations (2 in the Republic of Kazakhstan and 8 in the Russian Federation), six new storage tanks (100,000 cu.m each) in addition to the existing four near Novorossiysk and a third SPM at the CPC Marine Terminal, and also the replacement of an 88 km pipeline section in Kazakhstan with a larger diameter pipe. The total amount of the Project investments will be USD 5.4 billion.

CPC Shareholders: Russian Federation (represented by Transneft - 24% and CPC Company - 7 %) - 31%; Republic of Kazakhstan (represented by KazMunayGaz - 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% и Oryx Caspian Pipeline LLC - 1.75%​