Caspian Pipeline Reaches Another Milestone; Consortium Celebrates
CASPIAN PIPELINE REACHES ANOTHER MILESTONE; CONSORTIUM CELEBRATES FINAL WELDING OF NEW PIPE LAID IN RUSSIA
This is news concerning Chevron issued by Chevron Overseas Petroleum Inc. in Russia, and archived here for record purposes
NOVOROSSIYSK, Nov. 22, 2000 -- Chevron announced today that the Caspian Pipeline Consortium (CPC) reached another milestone when it completed the laying of new pipe in Russia. The final welding of the new pipe was done ahead of schedule, and the pipeline is on track for start-up in mid-2001. The 1,580-kilometer pipeline from the Tengiz oil field in western Kazakhstan to the Black Sea port of Novorrossiysk will cost $2.5 billion and expenditures have already exceeded $1.8 billion.
"Chevron is pleased to be a part of this bellwether project," said Peter Robertson, president of Chevron Overseas Petroleum Inc. "The Caspian Pipeline is not only a model of international cooperation but also of regional partnership. CPC establishes a world-class corridor of economic development between the Black and Caspian Seas. Chevron is proud to play a role in this bridge of prosperity," added Robertson.
The ceremony was attended by the United States Ambassador to Russia, James Collins. Collins said, "The construction of the Caspian Pipeline is a major step forward in the development of Russia's and Kazakhstan's oil reserves and one that has consistently had the full support of the U.S. Government. This is a truly international venture with very substantial U.S. involvement. Almost half of the initial $2.5 billion investment in CPC is being met by U.S. corporations."
Chevron Overseas Petroleum Inc.'s Managing Director of Eurasia, Guy Hollingsworth, added, "The pipeline means jobs and revenues for Russia and Kazakhstan. CPC has used local goods, local services and local contractors to construct a state-of-the-art transportation system and a massive contribution to the infrastructure of southern Russia and the North Caspian."
CPC will not only carry Tengiz crude, but also oil from other Russian and Kazakhstan fields. The initial export capacity of the pipeline will be 600,000 barrels per day (28 million tons per year). With upgrades, the pipeline capacity will ultimately reach 1.5 million barrels per day (67 million tons per year).
The equity interest in the CPC is allocated as follows: Russian Federation (24 percent), Republic of Kazakhstan (19 percent), Sultanate of Oman (7 percent), Chevron Caspian Pipeline Consortium Company (15 percent), LUKARCO B.V. (12.5 percent), Rosneft-Shell Caspian Ventures Limited (7.5 percent), Mobil Caspian Pipeline Company (7.5 percent), Agip International (N.A.) N.V. (2 percent), BG Overseas Holdings Limited (2 percent), Kazakhstan Pipeline Ventures L.L.C. (1.75 percent), and Oryx Caspian Pipeline L.L.C. (1.75 percent).
Updated: November 2000