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2021 March 16 17:50

CPC and Novorossiysk sign investment Letter of Intent

On March 16, 2021 in Novorossiysk, CPC General Director Nikolai Gorban and Head of Novorossiysk Municipality Igor Dyachenko signed a Letter of Intent in the field of investment. The Letter that had been drafted in accordance with the applicable Cooperation Agreement of January 25, 2017, regulates the implementation of an investment project dedicated to the upgrade of CPC-R Marine Terminal facilities as part of Debottlenecking Program (DBNP) in the territory of Novorossiysk Municipality.

DBNP scope includes construction of new Oil Quality and Quantity Measurement System units (OQQMS), pressure control station, surge relief system, and upgrade of the existing PCVs. In 2021-2024, the Consortium is going to invest over 9.2 billion rubles in DBNP implementation in the territory of the municipality. Over 140 temporary jobs will be created.

The document stipulates that CPC will be engaging contractors, including those registered in Krasnodar Krai, while implementing the investment project. The Letter also includes the Consortium's commitment to compliance with the requirements of environmental safety, rational use and restoration of natural resources.

The Consortium and the City of Novorossiysk Municipality have an almost 20-year history of successful cooperation. In the 2018-2020 time frame alone, CPC tax payments into Krasnodar Krai budget have amounted to about 23 billion rubles. From 1998 to 2020, the people of Novorossiysk have received over 1 billion rubles in charitable aid.

The CPC Pipeline System is one of CIS largest energy investment projects that involves foreign capital. The length of the Tengiz – Novorossiysk pipeline is 1,511 km. This route moves over two thirds of all Kazakhstan export oil along with crude from Russian fields including those in the Caspian region. CPC Marine Terminal is equipped with three Single Point Moorings (SPM), allowing tankers to be loaded safely at significant distance offshore, including in poor weather conditions

CPC Shareholders: Federal Agency for State Property Management represented by Transneft (trustee) – 24%, CPC Company – 7%, KazMunayGas – 19%; Kazakhstan Pipeline Ventures LLC – 1.75%, 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%.