press release

Chevron Press Release - CPC Transportation Agreement Approved

This is news concerning Caspian Pipeline Consortium (CPC), in which Chevron owns a 15% equity interest. It is archived here for record purposes.

MOSCOW, Aug. 3, 2001 -- At a meeting today in Moscow, Caspian Pipeline Consortium (CPC) shareholders approved its Transportation Agreement, including the Quality Bank, which is crucial for CPC to commence operation.

Commenting on the decision, Chevron Vice Chairman Richard H. Matzke said: "This is a great day for the CPC project, Russia, Kazakhstan and all CPC shareholders."

The approval of the Transportation Agreement represents the detailed enactment of the original 1996 CPC Shareholders Agreement. All elements are now in place to commence shipping of oil from the CPC terminal near Novorossiysk in the next few weeks.

Chevron Chairman David O'Reilly said: "The Russian Government has been a steadfast supporter of CPC from the initial stages of the project and throughout the construction phase.

It has now given full support & approval for the commencement of CPC operations in accordance with the Shareholders Agreement. This decision sends a powerful signal to the world's investment community that Russia and Kazakhstan are countries in which major, long-term capital investments can be made with confidence."

Note to editors: Equity interest in the Caspian Pipeline Consortium is allocated as follows:

  • Russian Federation (24 percent)
  • Republic of Kazakhstan (19 percent)
  • The 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)
  • Oryx Caspian Pipeline L.L.C. (1.75 percent).

Updated: August 2001