BAKU, Azerbaijan, Oct. 1
Trend:
Caspian Pipeline Consortium (CPC) remitted $341.01 million to repay in full the debt to the Shareholders on Sept. 30, 2020, Trend reports citing CPC.
The said amount included CPC-Russia’s repayment of $295.26 million ($48.74 million was remitted to the Russian Federation budget), whereas CPC-Kazakhstan repaid $45.75 million.
Thus, the CPC repaid its debt to the Shareholders ahead of schedule. Full repayment was previously expected in 4Q2020.
The debt arose from the Loan Agreements made in 1997 between the Government Shareholders and Producer Companies as Lenders and Joint Stock Companies CPC-R and CPC-K as Borrowers. Loan repayment to the Shareholders was suspended during the CPC Pipeline Expansion Project and resumed in April 2015.
Shareholder loan balance amounted to $967.77 as of early 2020. The total amount repaid by CPC-Russia and CPC-Kazakhstan for the loans is $10,843 billion.
The CPC pipeline system is one of the largest investment projects with foreign capital in the energy sector in the CIS. The length of the Tengiz-Novorossiysk pipeline is 1,511 km; more than two-thirds of all export crude oil from Kazakhstan and crude oil from the Russian fields, including those in the Caspian Region, are transported by this route.
CPC Shareholders: Russian Federation (represented by Transneft – 24 percent and CPC Company – 7 percent) – 31 percent; the Republic of Kazakhstan (represented by Kazmunaygaz – 19 percent and Kazakhstan Pipeline Ventures LLC – 1.75 percent) – 20.75 percent; Chevron Caspian Pipeline Consortium Company - 15 percent, LUKARCO B.V. - 12.5 percent, Mobil Caspian Pipeline Company – 7.5 percent, Rosneft-Shell Caspian Ventures Limited – 7.5 percent, BG Overseas Holding Limited - 2 percent, Eni International N.A. N.V. - 2 percent and Oryx Caspian Pipeline LLC – 1.75 percent.
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