Azerbaijan, Baku, Nov. 30 / Trend E. Kosolapova/
Caspian Pipeline Consortium plans to attract up to $500 million loan on expansion project, the consortium reported.
The decision was taken at the Special General Meetings of Caspian Pipeline Consortium-R and Caspian Pipeline Consortium-K Shareholders as well as a CPC-R Board of Directors Meeting which took place on November 27-28.
"The Shareholders approved a resolution to take a third-party loan not exceeding $500 million to fund the project to expand CPC crude pipeline which was the key agenda issue of the meetings," the consortium said.
The loan will be within the planned expansion project budget of $5.4 billion.
The meetings also approved the 2013 OPEX Budgets of both companies and also reviewed the business plan which included financial forecasts, operations plans and strategic directions of the company's forecasted costs for the next five years. Resolutions on HR matters related to direct hires and those on salaries, bonus and social benefits were approved.
In the course of the General Shareholders' meetings new memberships of the companies' Boards of Directors and CPC-R Audit Commission and CPC-K Internal Audit were elected.
The CPC pipeline system is one of the largest investment projects with foreign capital in the CIS. The length of the pipeline connecting the oil fields in Western Kazakhstan with the Marine Terminal in Novorossiysk is 1511 km.
The CPC Project was originally developed with a view to a potential expansion of its capacity by 2.5 times up to 67 million tons per year (76 million tons per year with DRA).
The Expansion Project includes the rehabilitation of five existing and construction of 10 additional pump stations (two in the Republic of Kazakhstan and eight in the Russian Federation), six crude oil storage tanks near Novorossiysk and a SPM at the CPC Marine Terminal and also the replacement of a 88km pipeline section in Kazakhstan with a larger diameter pipe. The total amount of the project investments will be $5.4 billion.
CPC Shareholders are: The Russian Federation (represented by Transneft - 24 per cent and CPC Company - seven per cent) - 31 per cent; Kazakhstan (represented by Kazmunaigaz - 19 per cent and Kazakhstan Pipeline Ventures LLC - 1.75 per cent) - 20.75 per cent; Chevron Caspian Pipeline Consortium Company - 15 per cent, LUKARCO B.V. - 12.5 per cent, Mobil Caspian Pipeline Company - 7.5 per cent, Rosneft-Shell Caspian Ventures Limited - 7.5 per cent, BG Overseas Holding Limited - two per cent, Eni International N.A. N.V. - two per cent and Oryx Caspian Pipeline LLC - 1.75 per cent.