OREANDA-NEWS. Caspian Pipeline Consortium finished the year by setting another annual oil loading record on 31 December. The total volume of oil loaded by CPC from the Marine Terminal in 2015 went up 7% on the year before, reaching 42,759,000 tons, including 37,993,000 tons out of Kazakhstan and 4,766,000 tons out of Russia.

The total CPC system throughput capacity increased up to 52 million tons per annum. This became possible thanks to the commissioning of new facilities under the Expansion Project. Thus, PS-4 was commissioned in Stavropol in late December and PS-3 in Kalmykia a month earlier. The upgraded Tengiz and Atyrau pump stations were formally commissioned and the CPC Tank Farm near Novorossiysk expanded in September.

The commissioning of the new facilities increased the pipeline system's operational reliability significantly. All Expansion project work is planned to be completed in 2016, within the Shareholder-approved budget.

Last year, CPC started payouts to the shareholders as part of the shareholder debt repayment.  The decision to start repayments was made on the basis that there were enough funds available to the consortium to complete the Expansion project.  In 2015, CPC paid out to the shareholders a total of USD 1.5 billion, including USD 326.8 million paid to the Russian shareholder.

In 2015, CPC had its environmental management system successfully recertified for compliance with ISO 14001:2004.

Another significant event last year was CPC's expanding its cooperation with the host regions - CPC-R signed amendments to cooperation agreements with regional administrations, providing for an additional RUR 145 million being allocated for implementing community-related projects in every region under the Expansion Project.

The year ended with CPC brilliantly winning the International Oil Terminal 2015 competition that took place in St. Petersburg on  26-27 November. The CPC Marine Terminal was awarded the Grand Prix. This was  already the fourth award the terminal had won since CPC had joined the competition. The company had earlier been a prize winner of the International Oil Terminal Award  in the nominations "Best Process Equipment", "Reliable Partner" and "Sustainability".

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 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 US$ 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%