15 June 2004 16:03
CPC SIGNS CONTRACT FOR EXPANSION SURVEY
a contract on Tuesday for the development of documentation for the
expansion of the pipeline system connecting the Tengiz field in
MOSCOW. June 15 (Interfax) - The Caspian Pipeline Consortium signed
Kazakhstan with the Yuzhnaya Ozereika terminal near Novorossiisk, CPC said in a press release.
The statement said that the information provided by this group
would allow CPC and its shareholders to reach a decision on the
The tender to carry out this work was won by a group containing the U.S. company Gulf Interstate Engineering, the
Kazakhstan Oil and Gas Institute, Giprovostokneft from Samara and Britain's John Brown E&C.
timeframe and scale of the expansion project and the corresponding technical solutions.
The initial capacity of the system, launched in 2001, amounts to 28 million tonnes per year. However, the system was
designed to be expanded to 67 million tonnes and the entire length of the pipe has oil pumping points, which will allow
it to transport oil from various fields in Russia and Kazakhstan.
CPC General Director Ian McDonald said that by optimizing pipeline operations and using admixtures the consortium
will be able to increase the capacity of the first phase by several million tonnes. However, he said that this is a
temporary measure and growth in production by oil companies requires the CPC system to be gradually expanded, involving
the construction of new pumping stations and reservoirs near Novorossiisk.
Russia has 24% participation in Caspian Pipeline Consortium,
Kazakhstan - 19%, Oman - 7%, and another 50% of the consortium is
He said that the pipeline would expand its capacity gradually over the next four to five years, until the entire
planned infrastructure to expand the system is built. He said that this will ensure a significant increase in the export
capacity of Russia and Kazakhstan and will supply additional oil to the world market.
The CPC currently transports 1.6 million tonnes of oil per month. With the inclusion of Karachaganak volumes should
increase to 2 million tonnes per month over the next few months or about 24 million tonnes per year - over 500,000
barrels per day.
The total length of the Tengiz-Novorossiisk pipeline is 1,580 km and it joins deposits in Western Kazakhstan with the
Russian Black Sea coast. The first stage of the pipeline has a capacity of 28.2 million tonnes of oil per annum, which
will gradually increase to 67 million tonnes per annum.
divided between Chevron Caspian Pipeline Consortium Co. (15%), Mobil Caspian Pipeline Co. (7.5%), Oryx Caspian
Pipeline L.L.C. (1.75%), Russian-U.S. joint venture LUKArco B.V. (12.5%), Russian-British joint venture Rosneft-Shell
Caspian Ventures Ltd. (7.5%), Italian Agip International (N.A.) N.V. (2%), British BG Overseas Holdings Ltd. (2%) and
Kazakhstan Pipeline Ventures L.L.C. (1.75%).
[Interfax] |
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