Caspian Pipeline Consortium

The Caspian Pipeline Consortium is an international consortium of 1,510-kilometer long oil pipeline from Tengiz field to the Novorossiysk-2 Marine Terminal on Russia’s Black Sea coast. It also major export route for the oil from Kashagan and Karachaganak fields.

The first stage of the CPC with an approximately cost of US $700 million was opened on 27 November 2001. The pipeline diameter varies between 1,016 mm and 1,067 mm. The transport of oil began at convert|350000|oilbbl/d|m3/d and reach now convert|700000|oilbbl/d|m3/d. The planned capacity of pipeline at the first stage is 28.2 million tons of oil per year. A second stage, if constructed, would increase capacity to convert|1.3|Moilbbl/d|m3/d by 2010. The estimated cost of second stage would be around $2.0 billion dollars.

History

CPC today grew out of an earlier CPC development by the Russian, Kazakhstani and Omani government to create a dedicated pipeline from Kazakhstan to export routes through the Black Sea. CPC was initially created in 1992 between the three governments. Chevron was also asked to join, however joining talks broke down due to the high finical burden Chevron would have to take in relation to it equity in the pipeline. Progress on the project stalled for several years until 1996 when it was restructured to include producing companies as well. These partners are the same as the ones listed below with the exception of Shell which came into the Consortium later after buying out Kerr McKee's share in 2003. In April 2007, the Russian government transferred its shares to the Russian state-owned oil pipeline company Transneft.cite news
publisher=Upstream Online
url=http://www.upstreamonline.com/incoming/article132389.ece
title= Transneft takes CPC bite
date=2007-04-29
accessdate=2008-07-07] The CPC is presently the only oil export pipeline in Russian territory not wholly owned by Transneft.cite paper
publisher= IFRI
author = Adrian Dellecker
url=http://www.ifri.org/files/Russie/ifri_RNV_Dellecker_CPC_ENG_juin2008.pdf
title= Caspian Pipeline Consortium, Bellwether of Russia's Investment Climate? Russie.Nei.visions no.31
date=June 2008
accessdate=2008-07-07|format=PDF] There has also been rumours of the Government of Oman's withdrawing from the project.cite news
publisher=Downstream Today
url=http://www.downstreamtoday.com/News/Articles/200806/Oman_Set_To_Leave_CPC_Report_11629.aspx
title= Oman Set To Leave CPC - Report
date=2008-06-30
accessdate=2008-07-07]

Pipeline company

The CPC was formed in 2001 between the governments of Kazakhstan and Russia as well as the American-owned oil company Chevron.The shareholders are:

* Transneft - 24%
* Kazakhstan - 19%
* Oman - 7%
* Chevron Caspian Pipeline Consortium Co. - 15%
* LUKARCO B.V. - 12,5%
* Mobil Caspian Pipeline Co. - 7,5%
* Rosneft - Shell Caspian Ventures Ltd. - 7,5%
* Agip International (N.A.) N.V. - 2%
* Oryx Caspian Pipeline LLC - 1,75%
* BG Overseas Holdings Ltd. - 2%
* Kazakhstan Pipeline Ventures LLC - 1,75%

External links

* [http://www.cpc.ru/ Caspian Pipeline Consortium] , official website
* [http://www.eia.doe.gov/emeu/cabs/Caspian/Background.html Caspian region oil and gas info. including pipelines, US government EIA.]

References