September 2014

IN FOCUS: The Marine Terminal p. 4–41

Contents: Nikolay Brunich: “We apply only the best international practices” • p. 1 / Cosmic parallels of the Main Operations Control Center • p. 10 / Yuri Belov: “We all are going to be proud of what we have created” • p. 16 / Experts of Chevron PMC – about the situation at the construction site, international cooperation, and exchange of best practices • p. 18 / Environmental well-being axiom• p. 28 / At the cutting edge • p. 31 / Olympic levels of safety • p. 42 / Bringing warmth to children • p. 44 / Through the prism of history • p. 46 IN THE FIRST PERSON Nikolay Brunich: “We apply only the best international practices”

OUR INTERVIEW WITH THE CPC GENERAL DIRECTOR TOOK PLACE JUST BEFORE THE OIL AND GAS INDUSTRY WORKERS’ DAY. HOWEVER, THE THINGS HE SAID REFERING TO THE HOLIDAY REMAIN RELEVANT RIGHT THROUGH UNTIL THE COMPLETION OF THE EXPANSION PROJECT. JUDGE FOR YOURSELVES.

– Nikolay Grigoryevich, the distinguished themselves. We Oil and Gas Industry Workers’ have a huge job this year. The first Day is not just an annual phase of the Expansion Project in holiday, but also a kind of Russia is completed. At the Marine milestone the industry experts Terminal the third SPM has can talk about their business been put into operation, which At PS “Atyrau” – one of the most important achievements. What are CPC’s brought us at the line’s endpoint sites of the CPC Expansion Project accomplishments for the day? to a production potential fully consistent with CPC’s goals of the regional managers and all the – For the CPC team the Oil reaching full production capacity operations and support departments Workers’ Day is a kind of an level. The pipeline throughput workers. Now, for example, the ending to another “oil” year when capacity has increased from 32 to teams for the new pump stations are we usually sum up the results, 45 mln tons. This success is the already being put together by our report on our progress and give result of the cooperative effort of HR department – we are planning encouragement to those who have both the Expansion Project team, to put into operation no less than five of those on the territory of the Russian Federation alone.

The Consortium’s success was also marked at the shareholders’ meeting that took place in May of this year in Geneva. It was stated there that even though at the beginning of 2013 the Expansion Project was running about two years behind schedule, now slippage is no more than a year. And we will not be satis- fied with what has already been achieved. For example, according to the construction program approved in Geneva the comple- tion of the last sites is planned for December 2015. As a result, This event is now history: On April 23 2014, a symbolic push button was pressed to mark the start of operation of the upgraded pump stations (“Astrakhanskaya”, the total delay will be reduced “Komsomolskaya”, “Kropotkinskaya”) and the completion of the first phase of the to 6 months (the initial deadline Expansion Project in the territory of the Russian Federation. The governor of the was July 2015). That is a signifi- Astrakhan Region Alexander Zhilkin took part in the grand ceremony. cant progress. IN THE FIRST PERSON

A work meeting at PS “Kropotkinskaya”

– There is no doubt that only the enhanced the efficiency of recommendations. Now all the cooperative work of the whole the decision making process. questions referring to project multinational Consortium There are head offices and task estimates and various purchases team made it possible. In groups working at construction will be solved for the company’s your opinion, what are its sites which promptly solve all maximum benefit. In the past strong sides and what can be the current issues with the the offer price was actually improved? representatives of authorship determined by contractors.

– CPC is a large international “The pipeline throughput capacity has increased from 32 to Consortium with a total of 45 mln tons. This success is the result of the cooperative effort 11 shareholders, and in our everyday operations we apply of both the Expansion Project team, the regional managers only the best international and all the operations and support departments workers” practices, especially in the fields of industrial, labor and environmental safety. Despite supervision, equipment suppliers That is a really huge step some difficulties at the initial and operations services experts. towards the optimization of the stage, we managed to combine financial policy conducted by the Russian technologies with “The pipeline throughput capacity CPC, and consequently, towards the Western ones. That gives us has increased from 32 to 45 mln the creation of favorable the reason to believe that the tons. This success is the result conditions for increase in CPC pipeline system is going to of the cooperative effort of both profits, speediest repayment of continue to function absolutely the Expansion Project team, debts and paying dividends to smoothly and flawlessly. the regional managers and all our shareholders. the operations and support Talking about the Expansion departments workers.” We will also keep on adjusting Project I have to note that we the company’s policy in have significantly improved Another important innovation accordance with the legal its structure, updated the is CPC estimation group that requirements of the Russian management system and was created on the auditors’ Federation and the Republic www.cpc.ru September 2014 Panorama CPC 1 IN THE FIRST PERSON

of Kazakhstan. I believe it Project budget is approved by and the increase in its pipeline necessary to act with maximum the shareholders and it comes throughput capacity. It is efficiency in the interests of out at 5,4 bln US dollars, 3 bln no secret that for Kazakh both the shareholders and of which has already been spent. oil exports it is two to three the states where our sites are The 2014 spend will be 900 mln times more economical to situated. US dollars. use the routes offered by the

– The expansion of CPC is a large-scale project. Is the “The CPC expansion is a unique project in many ways. Not financing being provided on only does it not have current debts to the General contractor. schedule? On the contrary, it is we who are awaiting the application of funds from them to be able to speed up the construction of the – CPC is a unique project in many ways. Not only does facilities” it not have current debts to the General contractor; on the contrary, it is we who are – By increasing the crude Consortium rather than any awaiting the funds spend by shipment volumes, CPC is others. Before the start of the them to be able to speed up the becoming more and more Expansion Project we used to construction of the facilities. noticeable at the world map of transfer about 30 mln tons of oil The fact that CPC is not using the pipeline systems of crude per year, but once it is finished external borrowings is also hydrocarbons transportation. As we will be able to increase the unique – the Expansion Project the head of the Consortium, do system’s throughput capacity is financed purely from our you feel a growing interest in it at up to 70 mln tons. However at own circulating assets. We have the international level? present we have no incremental external financing contract to capacities that we could cover revenue non-receipt risk, – Many oil companies, possibly distribute by tendering but we have never used it and especially those situated among the non-shareholders in the financial model shows that along our pipeline, are closely accordance with the constituent we never will. The Expansion watching CPC’s development documents.

Even after all the Expansion Project facilities are put into operation, PS “Kropotkinskaya” will remain the largest Consortium station in the Russian Federation

2 Panorama CPC September 2014 www.cpc.ru IN THE FIRST PERSON

With the Kashagan field in operation, our pipeline will be filled. The full load will allow us to quickly clear debts, return loans to shareholders and start conducting the dividend policy for the shareholders in Russia and Kazakhstan.

– Is there anything you would like to wish to CPC staff for Oil Workers’ Day?

– I wish them splendid health! I wish them to be able to come to work in a good mood, enjoy what they are doing and communication with their colleagues. I also wish them to have respectable salaries as it is the only profit source for our employees. We took a serious step in that direction in 2014. I hope that our shareholders will keep on supporting us in that respect.

Interviewed by Pavel Kretov The Marine Terminal: the view from the captain’s deck house

While this issue was in production

On September 3, CPC General Director Nikolay Brunich inspected the progress of construction at the facilities being erected within the framework of the Marine Termi- nal’s Tank Farm Expansion Project. At a working meeting with the top managers of the managing company and contractors, he noted the considerable progress in the pace of construction achieved over the two months that had passed since his previous inspection trip. The effective performance of the recently established Working Group for operational management of the Tank Farm construction was acclaimed as the catalyst of such posi- tive developments.

www.cpc.ru September 2014 Panorama CPC 3 IN FOCUS: MARINE TERMINAL Vladimir Sinyagovsky: “One must not say ‘no’ to progress” NOVOROSSIYSK IS ONE OF THE MOST IMPORTANT TRANSFER POINTS FOR CRUDE CARBOHYDRONS AND OIL PRODUCTS, AND THE CPC MARINE TERMINAL IS AN INTEGRAL PART OF IT. “THE CONSORTIUM IS AN EXAMPLE OF HIGH SOCIAL RESPONSIBILITY”, – VLADIMIR SINYAGOVSKY, THE HEAD OF THE NOVOROSSIYSK HERO-CITY WAS PLEASED TO SAY IN HIS “CPC PANORAMA” INTERVIEW.

– Vladimir Ilych, how significant No wonder that so many people for the city is the dock activity of would like to work there, and oil transfer? those who do are justifiably proud of their company. – Most of all, it’s the “visiting card” of Novorossiysk. 56% of the – The formation and development city budget and the consolidated of the CPC pipeline system took budget comes from such transpor- place right before your eyes. What tation that includes the sea trans- were the relationships between fer of oil, reduced crudes, etc. CPC the city administration and the alone loads tankers with more company management during all than 30 mln tons, plus other par- these years? ticipants transfer about 55-60 mln tons, so altogether it comes up to – We are proud of the relations we 100 mln tons a year! have built with the Consortium as it took some effort. I made my ac- Whether it is Sheskharis or the quaintance with CPC 12 years ago CPC Marine Terminal, the tech- when I became the city mayor. The nical performance level of the oil attitude of local people towards it facilities that determines the high was highly negative. People even ecological standards of their work brought me oil-contaminated is very impressive. I would like to pebbles which, as I later found particularly mention the safest way out, CPC was not responsible for. of transferring oil with the help It was clear to me that it was an of three single point moorings, organized campaign against the organized by the Consortium. CPC oil workers and some resourceful The monument to the founding fathers is a highly productive, effective and gentlemen were trying to turn it of the city of Novorossiysk well-organized company. into a kind of “gold mine”.

4 Panorama CPC September 2014 www.cpc.ru IN FOCUS: MARINE TERMINAL

There was a serious oppositional our municipal district, and CPC need them. I will give you some movement, organized by specially is a good example. happy statistical data: we have trained people, during the time 1,900 newborn children this year, when we were negotiating with Everybody here knows the compa- 500 infants more than during the CPC over the construction issues ny. In the city we have trolley-bus- same period last year. And thank of the system’s second extension. es, buses and ambulances bearing God!.. Yet the public hearings were con- ducted in full accordance with the law, all the construction permits CPC is a highly productive, effective and well-organized were processed, so now construc- company. No wonder that so many people would like to tion is successfully progressing work there, and those who do are justifiably proud of their within the frames of the CPC company Expansion Project.

– What benefits do the local peo- the CPC logo. A short time ago the Today Novorossiysk is among the ple get from the presence of the Consortium presented Novoros- top-rated cities in terms of salary Consortium? siysk with a new batch of public levels due to all-the-year-round buses. At the expense of CPC we employment of the population, – The city has a number of purchased expensive medical in contrast with Anapa or Ge- urgent issues such as municipal equipment that most medical lendzhik where people are only improvement, roads, housing facilities can only dream of. temporarily employed during the and utilities ... It takes serious fi- vacation season when there is an nancial resources to attend to all Have you already seen the con- influx of tourists. Our unemploy- of them. For example, we need struction site of the new kinder- ment rate is only 0,2% since we 1,5 bln rub for resettlement of garten for 160 kids in the Gle- have manufacturing in operation, people from old housing stock. bovskoye rural district? I also took public transport is working and And then there are the problems a look at it yesterday. It is a pretty the dock operations continue. We of medicine, education... Over impressive facility, and by putting enjoy these favorable conditions half of the city budget is spent it in into operation we can make partly thanks to the smoothly on solving social issues. It’s good progress in solving one more running Consortium which is to have companies with a high burning issue – providing kinder- planning to double its oil transfer level of social responsibility in garten places for all those who volumes in the nearest future, and

Novorossiysk – a hero-city, a port, the southern gates of Russia It stands on the crossing of transportation corridors that connect the country with the Mediterranean, the Middle East, Africa, Asia, North and South America

www.cpc.ru September 2014 Panorama CPC 5 IN FOCUS: MARINE TERMINAL

that means more working places and extra tax revenues. There is one more obvious advantage: the best local builders are engaged as subcontractors at the Expan- sion Project sites, and they have a chance to become familiar with the international practices and experiences accumulated by the Company.

That is our way to join efforts for the purpose of solving citizens’ social problems.

– Novorossiysk is also a resort zone which means the very high- est ecological standards must be observed in the region. How do the CPC facilities fit into the city’s ecosystem? Handing over medical equipment to Novorossiysk municipal hospital No. 1 – I am familiar with the strict environmental safety measures – The water there is crystal clear, When you say “no” to progress – observed by the Consortium we have juniper growing along the it’s a dead-end path. because I myself visit the Marine shore which as you know is an in- Terminal from time to time. dicator of air purity. It is not only – How do you see the prospects I can confirm the absence of the people who are not bothered for future city relations with the any enterprise activity-related by the terminal – there are lots of pipeline Consortium? smells, which is highly import- dolphins in the tanker port aqua- ant for resort areas. There hasn’t torium, and their presence means – We work directly with CPC, been a single emergency event the water environment is doing the regional authorities are not involved – and we highly value this relationship. What we have is There hasn’t been a single emergency event for the whole a separate cooperation program. period of CPC’s existence due to the modern technologies We are very optimistic about the used. That is why today we have clean sea and land existing format of relations. CPC where the tourist resort business can be developed to General Director Nikolay Brunich is an experienced manager and a top level a very sociable person. He imme- diately resolves any issue, and I don’t have to leave the city to for the whole period of CPC’s well. When we show it to visiting pester any offices in Moscow. existence thanks to the modern foreign delegations, it takes them technologies used. That is why by surprise. We also have contact with CPC today we have clean sea and representatives based in Novo- land where the tourist resort People can get very critical rossiysk. As of today I have no business can be developed to sometimes when something new questions for the Company. We a top level. Now it all depends is being built – like oil or fuel are getting ready for the autumn on the investors who could put oil terminals. I don’t think it is negotiation session that will serious money into this. right. I believe that the sea exists determine the perspectives for to perform various functions like cooperation between the city – Last night we observed fami- trade and transfer. One should un- and the Consortium for the next lies with children bathing and derstand that everything is going year. relaxing right next to the CPC to be safe when modern technolo- terminal... gies are applied, don’t you agree? By Ekaterina Suvorova

6 Panorama CPC September 2014 www.cpc.ru IN FOCUS: MARINE TERMINAL

A Big-time Oil Port

The Marine Terminal is the end point of the Tengiz-Novorossiysk oil pipeline, which is more than 1,500 km in length. The first tanker was loaded there on October 13 2001. By September 1 2014 around 365.75 mln tons of oil had been shipped to the CPC terminal in Novorossiysk and loaded into almost 3,420 tankers. According to data gathered by the port experts the most frequent tanker destinations were Italy, France and the Netherlands. The CPC terminal can receive tankers with a maximum deadweight of 300,000 tons.

www.cpc.ru September 2014 Panorama CPC 7 IN FOCUS: MARINE TERMINAL Alexander Krichun: “The entire system’s rhythm of work depends on our unique specialists”

NOVOROSSIYSK MARINE TERMINAL IS THE END POINT OF THE 1,500-KM-LONG CPC PIPELINE SYSTEM. IT IS THE POINT WHERE THE CASPIAN OIL ENDS ITS RUN THROUGH THE PIPELINE AND WHERE THE TREMENDOUS WORK OF THE MULTINATIONAL TEAM OF PIPELINERS IS COMPLETED. REGIONAL MANAGER ALEXANDER KRICHUN TOLD “CPC PANORAMA” HOW IT FEELS TO BE IN CHARGE OF THIS “FRONTIER”.

– Alexander, without doubt the oil transportation rate through equally important and each Marine Terminal team feels spe- the pipeline is increasing every contributes to the final result, cial responsibility for the final month and currently is more but I would like to specially note result of the whole effort. than 6,000 m3/h. The existing four the professionalism of the on- VFRTs-100000 tanks are only capa- shore service team, its engineers, – Of course. The performance of ble of giving us a safety margin of operators and mechanics, and the the whole pipeline system, which 24 hours; therefore, we are waiting marine department’s team, which begins in Kazakhstan, depends impatiently for the new tanks to be possesses huge experience of on the quality and coordination put into operation, which will make cargo handling operations and oil of our work. If we fail to perform it possible for us to put oil into stor- transfer to the maritime transport. offloading on schedule, the whole age during winter storms. As things pipeline will stop. Fortunately, the stand today, all the oil coming to us All our onshore employees, who Marine Terminal team has never through the pipeline is immediately are in charge of managing the allowed any such delays to occur. loaded onto tankers. The work is process, have higher educations. intense and the responsibility is We do serious HR work, including The rhythm of work of the Marine high. The Operations Department’s strict selection, education and Terminal has become even more workload is particularly high. training, in order to ensure the important in connection with the high reliability of the terminal’s Expansion Project and increased – Despite all the difficulties you performance in the future. Look oil transportation volumes through have mentioned, the team is how it is - our specialists are unique the pipeline system. After all, the coping? - you will not find anyone like them in other ports. They are unique in – Yes, our team is a highly-skilled that in addition to offshore loading one. Of course, all divisions are they operate all the other systems,

8 Panorama CPC September 2014 www.cpc.ru IN FOCUS: MARINE TERMINAL

without which the loading process the end of this year, one more shift office building needs to be con- could not be performed. will be formed and will start working, structed. Design is currently under which will allow us to divide the roles way. We expect the construction – What are the priority tasks of servicing the tank farm and the of a new office building to be com- facing the Marine Terminal’s shore facilities. As things stand, the pleted by the end of 2016. team?

– In the near future, it is, of course, All of Alexander Krichun’s life has been connected with the sea. the completion of the Expansion After graduating in 1978 from the Odessa Higher Maritime Project’s Phase 1. Operations Engineering School, he served on various vessels belonging to services (offshore and onshore) the Novorossiysk Shipping Company. In 1986, he obtained his and the Department of Technology (IT, communications, SCADA) -- all Captain’s Diploma. Alexander Krichun has been to many ports work in support of the Expansion around the world. “If I put stickers on a map of the world,” he Project. After its completion, we smiles, “it would look really dotted.” In the 1990s, after the are obliged to immediately take on fall of the Iron Curtain, he became the first Russian captain new facilities and start their oper- to serve on the bridge of a foreign tanker, sailing under the ation without losing a single min- ute. Incidentally, the Expansion Norwegian flag. He commanded high-tonnage vessels, up Project’s first facility, SPM-3, was to 340,000 DWT. Alexander Krichun has been with the CPC put into operation at the Marine Marine Terminal from the very first day of its operation. On Terminal in February 2014. Soon October 13 2001, he took part in the loading of the first tanker the facilities of the tank farm will as a mooring master be ready. In November, we will be accepting for operation Tank No. 8, and in March 2015 we are sched- tank farm and the onshore facilities – The terminal is located on the uled to take on all tanks included are serviced by one and the same coast, with the city of Novorossi- in the Phase 1 scope of work. team, which is not very convenient. ysk and numerous resort areas In addition, the staff of our auxiliary in the neighborhood. Do you – What preparatory work, departments has been increased by feel any increased interest in the organizational and HR, is under 1-2 people each. The IT Department oil port and its work from the way at the terminal in view of has received noticeable reinforce- general public or environmental the scheduled doubling of the ments, and currently its specialists organizations? pipeline system’s throughput are servicing not only the Marine capacity? Terminal’s facilities, but also those of – As you must know, the Company the pipeline, up to the Kazakh border. devotes major attention to industri- – All the preparations have already al and environmental safety issues. been completed. This is nothing out Now that the number of employ- Thanks to the application of the of the ordinary, but something we ees has increased, in order to most advanced technologies, not have been preparing for well in ad- ensure optimal accommodation a single drop of oil has ever leaked vance. The work aimed at strengthen- of CPC personnel at the Marine into the environment during the ing our HR potential was started back Terminal, the Consortium’s leader- performance of loading operations in March 2011. This year we hired ship has decided that a new, third, at the Marine Terminal or during new people for certain key positions in the Operations Department. By

www.cpc.ru September 2014 Panorama CPC 9

IN FOCUS: MARINE TERMINAL

the transportation of oil along the pipeline’s entire route. Neverthe- Cosmic parallels of less, the oversight agencies are permanently on duty, checking our activities and our compliance with the Main Operations the relevant requirements. Inciden- tally, three oversight agencies -- the Control Center Federal Service for Environment, Technology and Nuclear Oversight (Rostekhnadzor), the Federal Ser- OIL TANKER LOADING IS PERHAPS ONE OF THE MOST IMPORTANT vice for the Oversight of Consumer OPERATIONS PERFORMED BY CPC, WHILE THE RHYTHM OF THE Protection and Welfare (Rospotreb- MARINE TERMINAL OPERATIONS TO A LARGE EXTENT DEPENDS nadzor) and the Russian Federal ON THE COORDINATED WORK OF THE CONTROLLERS. IT IS AT THE Fisheries Agency (Rosrybolovstvo) – NOVOROSSIYSK MARINE TERMINAL WHERE THE MAIN OPERATIONS are currently working together CONTROL CENTER OF THE WHOLE CPC PIPELINE SYSTEM IS LOCATED. at the terminal, performing their scheduled inspections. Approxi- mately 70% of the programs of such SANCTA SANCTORUM yourself: the pipeline system’s inspections are related to environ- throughput capacity is currently mental control issues. Access to this “Holy of Holies” is in excess of 6,000 m3/h or more granted only to a limited number of than 100 rail car loads. Important- – What is the attitude of the employees with special passes. This ly, these amounts not only need to local residents toward the termi- is the place from where all pumps, be transported through the 1,500 nal and its activities? shutoff valves and other process km long pipeline, but also need to equipment along the entire pipeline be loaded onto tankers promptly – I can say with confidence that length, from Kazakhstan to the and without delays. we have won the confidence of the Marine Terminal, is managed. locals through the accident-free op- -- In essence, the work of the eration of the Marine Terminal and The Main Operations Control whole CPC team, its main and aux- our purposeful public awareness Center is a spacious premises with iliary divisions, is targeted precise- campaign. They understand that two consoles, exactly like those in ly at helping our two controllers as far as environmental security the NASA Houston Space Mission perform their work properly, and is concerned the Consortium will Control Center. One console is create all necessary conditions for never agree to any compromise. for the controller in charge of the them, -- lead controller of the Main pipeline’s performance, from Ten- Operations Control Center Alex- At the public hearings, which giz to Novorossiysk. The second ander Nosov commented. -- There- took place in March this year, we console is for his colleague who is fore, nobody has the right to inter- familiarized the locals with our in charge of the tank farm opera- fere in their work or hurry them new, improved, oil spill response tion and tanker loading. up. If a controller decides that plan. It was a very lively discus- the performance of an operation sion, lots of questions were asked, Their responsibility is on a level contradicts the interests of safety, and the result was an even higher with NASA employees. Judge for he will not allow such operation to confidence among the people in the safety of having CPC facilities in their close neighborhood.

It is indicative that the market price of land in the neighborhood of the Marine Terminal is among the highest in the region. Demand for this land is very high, which would hardly be possible if the locals considered the area to be unsafe or ecologically unstable. At the Main Control Center at the Marine Terminal Interviewed by Pavel Kretov

10 Panorama CPC September 2014 www.cpc.ru IN FOCUS: MARINE TERMINAL

From the tank farm, oil flows by gravity Alexander Nosov: “The controller to the shore facilities controls everything!” be performed and his decision will performance control. One control- Alexander Nosov is an oilman with be final and incontestable. ler will be in charge of the pipe- 30 years of experience of work in line’s section from Tengiz to PS the industry. He has worked in A THIRD ONE IS NEVER “Komsomolskaya”, and the second all spheres of the fuel and energy controller will be in charge of the complex -- from geological explo- SUPERFLUOUS remaining part of the pipeline. ration and production to hydrocar- This is being done in view of the bon processing and transportation. The control room is designed projected launch of 10 new oil He has more than one higher perfectly in all respects. Even the pump stations. education diploma - but this is fact that the controllers can hear common for the staff of the CPC each other’s telephone and radio The controllers work 12-hour shifts controller service where each em- conversations is no drawback, but for four consecutive days and then ployee has at least two university an essential feature. The controller they have four days off. An employ- diplomas. in charge of tanker loading must ee who returns to his duties from be well informed of the pipeline’s a lengthy vacation will never be al- It is interesting to recall that when performance, while it is no less lowed to manage the pipeline right the construction of the CPC pipe- important for his colleague, who is away. His first day at work will be line system was nearing comple- in charge of the pipeline’s perfor- devoted to reading the new execu- tion, all processes (hydraulic tests, mance, to be permanently aware tive orders and regulations issued water replacement and launch of of the situation at the Marine during his absence and working oil transmission) were managed Terminal. with a simulation software mod- from Moscow. It was only when eling pipeline management and the linefill oil passed PS “Kom- Data on the monitors of the con- hydraulic processes. Only after somolskaya” that the controllers trollers are updated every second, having proven his professional moved to the Main Operations regardless of the distance between skills will he be admitted to actual Control Center at the Marine the controlled facility and the work. Terminal. Remembering such hard control center. Such promptness work and unforgettable dates, they is provided with the help of the STRICT SELECTION observe the CPC Controllers’ Day SCADA automated control system. every year on June 1. SCADA gathers data from nearly In terms of its strictness, selection 80,000 points along the pipeline’s for the controller positions can be -- This fall will not be an easy time route, its pump stations and the compared to the selection of fight- for us. We will have to perform Marine Terminal. The data is trans- er aircraft pilots. Much attention the commissioning of the pump mitted through the CPC-owned is given to professional skills and stations built as part of the Ex- fiber-optic communication system, experience, but no less attention is pansion Project’s Phase I. We are with a length that is equal to one- given to stress resistance. getting ready to work hard - and third of the equator. for lengthy business trips to the -- The power units of our pump sta- construction sites, -- Alexander In the near future, the Main Oper- tions are nearly as powerful as air- Nosov completes his story. ations Control Center will receive craft engines. Each pump station a third console: two controllers has three such engines - Alexander By Pavel Kretov will be assigned to the pipeline’s Nosov remarked. www.cpc.ru September 2014 Panorama CPC 11

IN FOCUS: MARINE TERMINAL

Celebrating “Day of the Seafarer”

IN LATE JUNE, ON THE INTERNATIONAL “DAY OF THE SEAFARER”, LARGE- SCALE COMPREHENSIVE DRILLS FOCUSED ON OIL SPILL CLEANUP WERE HELD AT THE CPC MARINE TERMINAL.

Nikolay Platonov, Deputy Director Transneft NOT A SINGLE DROP OF ysk, RF EMERCOM Main Division for OIL SPILLED! the Krasnodar Region and RF EMER- Foreign Economic Relations COM Southern Regional Center. Department, commented: The large-scale drills in the harbor area of the port of Novorossiysk were – CPC has gathered together all the – We share the positive watched by CPC General Director best practices of Russian and foreign verdict on the event. It is Nikolay Brunich, representatives companies specializing in pipeline of the CPC shareholder companies transport. Thanks to the use of the notable that Consortium (Transneft, KazMunaiGaz, Chevron, very latest methods, painstaking HR personnel are permanently ExxonMobil, Eni and others), and efforts and regular drills, including fo- improving their skills, representatives of the supervisory cused emergency response, the CPC developing and adopting and oversight agencies – the Federal pipeline system has become among the best international Service for Supervision of Transport the most reliable of its kind in the (Rostransnadzor), Federal Service for world, – CPC General Director Nikolay practices. Also, I would like Environment, Technology and Nuclear Brunich commented. to note the performance of Oversight (Rostekhnadzor), Federal the Operation Management Supervisory Natural Resources Man- – It is common knowledge that our Headquarters, although agement Service (Rosprirodnadzor), company devotes high attention to this was nothing new for and the Transport Prosecutor’s Office, labor safety and health, industrial Marine Superintendent’s Service, Civil and environmental security. It is Transneft: it is well known Defense Administration of Novorossi- a fact that speaks for itself: not a that the company employs true professionals.

single drop of oil has been spilled, onto earth or into water, since the start of operations of the CPC facilities. The comprehensive drills graphically demonstrated how the CPC management and specialists and their contractors succeed in achieving such impressive results. The drill scenario, which was devel- oped by Marine Terminal specialists with the aim of putting to compre- hensive test all available equipment and human resources, envisioned CPC General Director Nikolay Brunich (right) and Chief Operations Manager the least likely accident, as well as Roman Vasilyev the one most difficult to correct –

12 Panorama CPC September 2014 www.cpc.ru IN FOCUS: MARINE TERMINAL

ExxonMobil emergency response advisor for Europe, Africa and the Middle East Rupert Bravery commented:

– We have seen for ourselves that the “Lamnalco” and “Transneft-Service” fleets are capable of bringing all the necessary means and forces to bear in such situations. However, I “Transneft” Foreign Economic Relations Department Deputy Director Nikolay Platonov (center) attentively watching video broadcast from the coastal booms and oil-collection would propose for the equipment deployment site. next exercises to include elements of surprise to see how the terminal’s personnel is capable of accident mitigation in changing conditions.

The onshore work went just as well in terms of coordination. The contractors promptly deployed 400 m of coastal booms and made 4,700 m more ready for immediate deployment. They delivered a suffi- cient number of containers for col- lecting oil-containing mixture and polluted soil and oil collecting units to a total capacity of 900 m3/h. A multipurpose 9,500 m3 tank was prepared for receiving oil-contain- Deputy Regional Manager for Marine Operations Igor Florovsky (center) and ing mixture. representatives of the CPC shareholder companies Operation Management Headquar- a guillotine breakage of the subsea to deploy booms around the ters provided general coordination. pipeline during tanker loading at imaginary contamination patch In just a few minutes the terminal SPM. The drills involved around 300 to a total length of 1,800 m. The was provisionally placed on emer- people from the Marine Terminal operation was performed by two gency situation regime. Communi- supported by 26 vessels plus a heli- marine forces: the “Lamnalco” cation was established, the situa- copter for surveillance and evalua- fleet moved in directly from the tion re-evaluated, the supervisory tion of the current situation in the auxiliary vessels harbor area, and authorities and local residents harbor area. 45 minutes later vessels of the notified, arrangements made for “Transneft-Service” fleet arrived the delivery of an environmental TWO FLEETS at the site from Novorossiysk. analysis lab, and the contractors The two fleets arranged into eight specializing in the removal and dis- It took the Consortium’s specialist mobile formations for collecting oil posal of contaminated wastes were contractors less than two hours from the water surface. contacted. www.cpc.ru September 2014 Panorama CPC 13 IN FOCUS: MARINE TERMINAL

The coastline is reliably protected

Operation Management Headquar- Kate Fraser-Smith, and the coastal strip was reliably ters explained each instruction and Oil Spill Response specialist protected. the information coming from the “ac- from Oil Spill Response Ltd. cident” site to the representatives of commented: – The drills checked the efficiency of the supervisory authorities and event organization and management of the guests. For better visibility, a large regular emergency response means, monitor was installed displaying data – We liked very much how involved practical training in the of the Automated Identification Sys- the drills were organized. All deployment of emergency response tem (AIS), which showed the move- necessary information was equipment, maneuvers of the oil-col- ments of vessels in the harbor area available at the Operation lection formations and interacting in real-time mode. Large monitors in Management Headquarters. technical means, – CPC-R Marine the Operation Management Head- Terminal Regional Manager Alexander quarters displayed video broadcast The oil spill response plan de- Krichun commented, summing up from the site where coastal booms veloper courteously answered the drills and their results.– Terminal and oil collection equipment were our questions, and we were specialists and representatives of the being deployed. provided with all necessary supervisory authorities concluded that materials. We were greatly the facility’s available regular means THE VERDICT IS POSITIVE! and forces of emergency response impressed by the excellent were sufficient and compliant with The drills received a positive communication and coordi- the requirements stipulated by the Oil appraisal from the observers and nation between the vessels: all Spill Response Plan. During the drill, representatives of the superviso- vessels moved out of the harbor the coastline protection team success- ry authorities. In their concluding when appropriate, occupied fully perfected their skills in adverse statement they noted that all goals weather conditions and sea swell over and objectives were successfully their designated positions and 2 m, and practiced other activities. achieved: the mock oil spill was remained strictly in place until promptly contained and cleaned up the end of the drills. By Pavel Kretov

14 Panorama CPC September 2014 www.cpc.ru IN FOCUS: MARINE TERMINAL

All personnel of the CPC emergency response units are certified rescue workers

Representatives of the supervisory authorities watched the Guests of the event were provided with all necessary materials progress of the large-scale drills www.cpc.ru September 2014 Panorama CPC 15 IN FOCUS: MARINE TERMINAL Yuri Belov: “We all are going to be proud of what we have created” THE ONSHORE MARINE TERMINAL DEPUTY REGIONAL MANAGER YURI BELOV IS A RELATIVELY NEW PERSON AT THE MARINE TERMINAL– HE HAS BEEN WORKING THERE SINCE THIS MARCH, SO ALL HIS IMPRESSIONS OF THIS ENTERPRISE ARE STILL FRESH.

– You can feel that this team is the only in Russia. Before I joined the The CPC team has a lot to be result of the careful selection pro- Consortium I worked in Serbia and proud of, and there are lots of cess that has been ongoing during saw their terminal, I also used to things to learn from them, so I all the years of CPC’s existence, – work in Hungary, Croatia, Italy... am learning. Yuri Nikolaievich remarks. – I was I can safely say that there are no pleasantly surprised to find out terminals with arrangements and – Alongside the Marine Terminal that all the operating staff is uni- an automation level equal to that operations there are the Expan- versity-educated. They are all intel- of CPC. No doubt credit goes to the sion Project works. That must ligent and capable people, and so Consortium’s Western managers make the induction period a lot we never face any implementation who introduced the most advanced more difficult for you? problems typical of some Russian international technologies into the companies when executives not facility construction. Everything – It’s a really challenging time, only give directions but also have was built and worked out without when I have to become familiar to make sure they are executed. spilling a single drop of oil. with the operational details of a large company and at the same – Did anything else take you by The local sea is so pure and blue time be very hands-on with all the surprise? largely thanks to the accurate construction details. work of the automatic systems. – The fact that the operation ser- Of course one should not forget It makes you nervous when there vice is not directly related to the about the human factor – people is ongoing construction at an op- loading itself. All we do is service need time to react, and unfortu- erating facility, when you see the the equipment that is operated automatically by the Operations Control Center staff, they give com- It’s the individual who makes most decisions, but mands by pressing a button. We automated equipment gives him time to size up the know from CPC’s experience that situation and make the right one it is not enough to build facilities, establish an automation principle and invest money in this automa- nately in the oil business such machines driving into the Tank tion. To make it all run smoothly situations may develop with cata- Farm – all those bulldozers and and flawlessly 24 hours a day is strophic speed. pipe layers that can cause serious really invaluable, and this problem damage with one careless move. has been definitely solved here. The It’s the individual who makes most people at the monitors are daily decisions, but automated equip- Some inconsistencies rooted in and effortlessly running the busi- ment gives him time to size up the facilities’ design come up. It’s ness and operating the equipment the situation and make the right no big secret that we may have over the vast territory. I have never one. In CPC the automated systems wells right in the middle of a road, seen such a closed production really work and help people with and some diversions only exist on cycle before, and I do not mean taking the right decisions. paper plans.

16 Panorama CPC September 2014 www.cpc.ru IN FOCUS: MARINE TERMINAL

Brownfield construction is progressing with special precautions

We are trying to make provision worst enemy is such situations is the being that the operation services for everything possible to ensure recurring nature of human habit. A would receive a ready facility as a the security of people and equip- construction worker may not always result. But life sets its own rules. It is ment, and that is a difficult thing know the things that can’t be done difficult for Expansion Project spe- to do. What really helps is the here once it is already an operating cialists, with all the tasks they are professionalism of all the staff, the facility. He has to completely change facing at any moment, to feel the technical and operating personnel. his behavior – but he is used to being operational rhythm. Besides, some Together, we will get through it all. the boss here and to acting accord- things have to be decided by those ingly. That is when the problems in control of the facility, which – Is it possible to predict any compli- start. One can easily reprogram a means the operating staff. cations so as to prepare for them? machine or issue an order that turns a green zone into a red one. But the In an ideal world, we would re- – The Tank Farm will be set to hardest part is to make the perform- ceive a ready-to-use facility from work during the autumn and ers, the builders, change themselves. the builders. But in reality we will winter period which will definitely not get the proper quality if we do result in some problems. Rains, That is why the zone of responsi- not participate in the process. water and drops in temperature – bility becomes a trouble spot when all of these are extra loads for the control changes hands. And only Taking advantage of this opportunity, operation services. We hope that the professionalism of our staff I would like to thank all my colleagues we will be able to successfully get stops many things from happen- from EP, PMC, Chevron and “Koksokh- over any difficulty, in cooperation ing. I even sent a corresponding immontazh” for their cooperation, with the Expansion Project spe- inquiry to PMC, which found its re- professionalism and commitment. I cialists and building contractors. sponse there: the Chevron special- know I can be harsh sometimes and I ists working at construction sites apologize for that. Everything depends – Does the fact that the expan- started paying more attention to on the tasks set before us. sion is taking place in “waves”, such zones, and currently we have one phase after another, make it managed to achieve real profes- – Do you already see the light at easier or more difficult? sional cooperation. The first stages the end of the tunnel? of the Tank Farm operational zones – It definitely makes it more difficult. expansion went rather smoothly. – I do – and it’s a rather bright one! What we have is a situation when But I think the conclusion of the operation is gradually “pressing – How do you divide your time construction works that everybody on” the construction process. Some between general operations and is so looking forward to will come facilities can be brought into opera- the Expansion Project? right out of the blue, as it usually tion only in one piece. For example, does – when the ugly duckling turns a completed electric substation – I have to dedicate about 80% of my into a swan. We all are going to be with the voltage on may become time to the Expansion Project. At proud of what we have created. dangerous – there are construction the time the best staff were assigned works in full swing all around it. The to its implementation, the intention By Ekaterina Suvorova www.cpc.ru September 2014 Panorama CPC 17 IN FOCUS: MARINE TERMINAL

Mark Kevin Nance: “Never compromise on safety principles”

CPC’S EXPANSION INVOLVES LARGE-SCALE CONSTRUCTION OF THE “TENGIZ-NOVOROSSIYSK” OIL PIPELINE SYSTEM, WHICH IS BEING UNDERTAKEN BY A LARGE MULTINATIONAL TEAM. BUT MOST OFTEN IT’S THE ENGLISH LANGUAGE THAT CAN BE HEARD AT THE MARINE TERMINAL, WHERE CHEVRON IS THE PROJECT MANAGEMENT CONTRACTOR. Chevron Neftegaz, Inc. BRANCH DIRECTOR MARK KEVIN NANCE TOLD “CPC PANORAMA” ABOUT THE SITUATION ON SITE, AND THE COOPERATION OF SPECIALISTS FROM DIFFERENT COUNTRIES AND THEIR EXCHANGE OF SHARED EXPERIENCES.

– Mr. Nance, the CPC Еxpan- tions with different work man- – We put considerable effort into sion Project has reached a stage agement styles taking part in the the organization model devel- where you can look back and see project, but nevertheless we have opment for our future work in some of the results of the work. managed not to compromise our Russia. The planning of the work What experiences have been new fundamental principles. Safe exe- was started in a large Chevron for you in this project? cution of works is our greatest val- center of expertise in Houston a ue. Efficient accomplishment of year before team mobilization be- – This project is unique for Chev- the work is natural when executed gan in Novorossiysk and Moscow. ron, it’s unlike any other project safely. The results obtained show After we arrived in Novorossiysk, that we’ve done before. It will be that we are applying the best possi- we proceeded with building up remembered for the extensive ble project management practices the team. First of all we invited rocky earth works, construction in these challenging conditions. those specialists who had proved of advanced marine systems like themselves during the initial CPC SPM-3, and installation of six – How did Chevron Neftegaz, Inc. facilities construction. We also major 100 000 m3 tanks. There are form its team for implementing had high hopes for the experts a number of contractor organiza- the project? who had carried out large oil

18 Panorama CPC September 2014 www.cpc.ru IN FOCUS: MARINE TERMINAL

and gas projects in Sakhalin. In Expansion Project facilities. I have – You requested 96 (72+24) addition, we found many talented to note that SPM-3 is one of the hours for future pipeline shut specialists in Novorossiysk and the most advanced marine facilities of down in October. That’s a Krasnodar Region. its kind in the world. The use of lengthy period for a functioning the latest technologies in the sys- pipeline. What’s planned for – How did relationships develop tem resulted in some difficulties that time? between the project managing during check-out and start-up. But company, Chevron Neftegaz, now when the facility is operating – We have a lot of work to do. Inc., and the contractors? What at full capacity we can confidently Our plans include the tie-in of a difficulties did your team have state that CPC has got an efficient 56-inch (1,422 mm) offloading to overcome in the course of buoy that will operate as required manifold’s shutoff unit at the such collaborative work in this for the company’s benefit. Marine Terminal’s tank farm. The multinational environment? work will require draining off – How about the progress of the product from the offloading – It’s true that ensuring produc- construction work in respect of manifold, cutting off a 15 m long tive cooperation required a lot of tanks No. 8, 4 and 6? section of the pipe, cleaning the effort at the initial stage. In the pipeline, degassing and sealing. course of multiple meetings with – Tanks Nos. 8, 4 and 6 part of the Since CPC can’t suspend the the contractors we managed to Expansion Project Phase 1. The next operation of the “Tengiz-Novo- work out procedures to regulate three tanks (No. 7, 9 and 10) are rossiysk” pipeline system for the the operation during the project’s part of the Phase 3 effort. Speak- entire 96 hours (which would realization and risk management. ing of tank installation, we should cause stoppage of oil production), That is a crucial moment; as we remember that simultaneously we proposed to perform the work all know, obligations taken on vol- with the erection of tanks auxilia- in two stages. Stage one will be untarily are executed with much ry facilities are constructed at the completed over 72 hours while more enthusiasm than those given site (such as power supply system, the pipeline’s operation is sus- in the form of orders. By using this control system, fire-extinguishing pended, and the remaining work approach we let all participants system, and others), without which will be performed during 24 hours feel they were part of the team, tank operation is impossible. The when the pipeline is operated in and that their opinion mattered Phase 1 construction works are a reduced capacity mode. During to us. close to completion, which brings the latter 24 hours, oil will be

– Chevron Neftegaz, Inc. is participating in all the onshore Mark Kevin Nance was born in the state of New Mexico, not and offshore Expansion Project far from Texas, which is famous for its oil industry. His father work at the Marine Terminal. worked in the oil and gas industry, and the family traveled How important was the extensively, following him around many U.S. cities. “I can’t commissioning of SPM-3 for the construction team? say that it was my childhood dream to follow in my parent’s footsteps, but once I started studying this profession in college – It was the first large important I soon understood that it was very interesting for me,” says facility commissioned as part of Mr. Nance. In 1984 he received the diploma of mechanical the CPC Expansion Project. It has engineer and started working with Chevron. Apart from been some years since any new facilities were connected to oper- the U.S. projects, Mr Nance has also worked in West Africa, ations in the Consortium pipeline Indonesia, Kuwait, and other locations system. During the SPM-3 commis- sioning process we worked togeth- er closely with the representatives us to the test stage, before the oil is transferred through the hydraulic of various organizations, including dispatched. Our main efforts are washing-out line at the rate of the CPC Operation Department now focused on the Phase 1 tanks, 3,000 m3 per hour. The tanks of PS and other contractors, and worked tank No. 8 in particular. Once it “Kropotkinskaya” will be used for out the plan to be used in putting starts working, we will be able to storing the rest of the feedstock. the facility into operation. That help the Marine Terminal to run scheme is now being used within faultlessly throughout the forth- Interviewed by Julia Starodubets CPC for commissioning other coming winter storm season. www.cpc.ru September 2014 Panorama CPC 19 IN FOCUS: MARINE TERMINAL

“Under operations control”

Bradford C. Rosewood, Operations Representative, Chevron Neftegaz, Inc.:

-- After more than 30 years working Saipem, the offshore pipeline ing and putting into operation for the Operations Department in installation operation began. This efforts. the Chevron Pipeline Company subsea pipeline construction and I was selected as the CPE opera- SPM installation process ran non- Upon successful completion of test- tions Representative and given stop for 12 weeks. ing, the Acceptance Commission the opportunity to take part in gave us permission to remove the the construction of the Marine Thanks to the “Incident and blinds and introduce oil into the Terminal facilities near the city of Injury Free” policy (IIF), good new onshore equipment and pig Novorossiysk. My first assignment communication, availability of launcher. We were now connected was to lead the installation of the work plans, appropriate work to the new subsea pipeline and third pig launcher/receiver. surveillance and oversight by SPM-3, and received approval to PMC Chevron, CPC Marine Termi- begin comprehensive testing! In late 2010, the CPC placed an or- nal Operations Department and der with Bluewater for the design Saipem, the offshore construction On August 20 2013, the third and and manufacture of SPM-3. The project was accomplished on final step was completed. It includ- first batch of equipment was deliv- schedule and incident free. ed the selection of a tanker for oil ered to Novorossiysk in early 2012. loading testing, which is commonly While the onshore and offshore referred to as the 72-hour compre- In May 2012, the construction per- construction were under way, the hensive trial run. CPC Commercial mit was obtained by CPC allowing new pig launcher/receiver was be- Department worked closely with “Koksokhimmontazh” to begin ing manufactured by TD Williams Chevron Shipping to ensure compli- excavation works at the shore at their UK facility. ance with all applicable standards facilities. of the Russian Federation during The onshore and offshore the performance of these works One of their priority tasks was to construction was completed in and subsequent obtainment of the dig a seven-meter trench across an the fall of 2012, and on Decem- operations permit. access road, which was necessary ber 24 2012 all newly installed for connecting the new pipe to equipment was connected to the SPM-3 was officially turned over for the subsea pipeline. Heightened systems of control, communica- operation to the CPC Marine Ter- safety requirements were applied tions and power supply. minal on December 24 2013, thus to all earthmoving, pipe alignment becoming the first system in the CPC and welding works as they were We were now ready to proceed Expansion Project to be 100% con- performed within the security zone with the commissioning phase. structed, commissioned and put into of SPM-1, which was in operation This was the first time the “fish- operation. Dozens of tankers have and where tanker loading was not bone” practice was employed been loaded at the new SPM to date. interrupted. for commissioning, which has since this proved good and is Materials of Chevron PMC In July 2012, shortly after the currently widely used by CPC for specialists (pp. 20-23) arrival of the pipe lay vessel from planning finishing commission- compiled by Julia Starodubets

20 Panorama CPC September 2014 www.cpc.ru IN FOCUS: MARINE TERMINAL

“Meeting international and Russian standards”

Susan Elizabeth Anderson, Deputy Director - Onshore Marine Terminal, Chevron Neftegaz, Inc.:

– So much has been accomplished fined with the project’s evolution. move that soil, which was unusable since the start of the construction As early works began, Novorossiysk for the needs of the project, and and installation work back in 2011. experienced one of its harshest bring in an equivalent amount of Phase 1 construction efforts at the winters in 20 years, which brought new suitable backfill instead. There Tank Farm have progressed dramati- problems in the construction effort were several more unfortunate dis- cally toward completion. The project and caused even greater concern coveries during the excavation of is on track to deliver Phase 1 mechan- for keeping people working on the the foundation sites for Tanks Nos. ical completion by March 31, 2015 project safe when roads were not 6, 9 and 10. The ground fractures and additional operational Tank passable and power supply was discovered required an engineering capacity by May 2015. unreliable. solution to ensure that the founda- tions for the tanks possessed the The Caspian Pipeline Expansion So, what can we say that we have necessary structural integrity. Project has been an interesting one accomplished? The early works from the very beginning not least were completed in about six Other technical challenges we because it is definitely not a typical months resulting in the tempo- confronted in the course of project capital construction project for rary site office, accommodation implementation included the Chevron. The shareholders in- camp and medical facilities. The withdrawal of the original design structed Chevron Neftegaz, Inc. to major earthworks were completed company from the project and the take part in the project as a project in March 2014 – at its peak this change of design institute. Our task management contractor and to construction activity involved was to erect tanks and auxiliary apply the company’s own project more than 100 units of heavy facilities in compliance with both management system. construction equipment and over Russian and international standard 200 dump trucks. As of today, we requirements. Despite all these In the CPC project, Chevron Neft- have completed the installation of difficulties, we have managed to egaz, Inc. is in charge of managing all three tanks scheduled for Phase achieve considerable progress in the tank construction work per- 1. Painting and piping installation the construction of the Marine formed by the General Contractor works are still ongoing. All major Terminal’s Tank Farm as well as “Koksokhimmontazh”, including concreting has been completed in building up relations with our all earthmoving, construction of and interior building finishing is Russian colleagues. the pipelines, infrastructure facili- currently under way. ties and utility lines, installation of We also devote much attention to instrumentation and controls and In the course of construction we sharing popular conceptions from electrical equipment. had to overcome several unfore- various cultures represented in the seen technical challenges. The project’s international team. In all As it was the first capital construc- first one was the discovery of an things, we have developed a warm tion project for CPC since the area containing approximately working relationship and a mutual completion of Stage 1 back in 2001, 250,000 m3 identified as bad condi- respect for each other, which will, the requirements for contractor tioned soil in the area of Substation no doubt, help us to be better pro- mobilization continued to be re- No. 1. We had to completely re- fessionals on our next projects. www.cpc.ru September 2014 Panorama CPC 21 IN FOCUS: MARINE TERMINAL

“We will persevere and prevail”

Tim V. Smith, Project Quality Manager from Chevron Neftegaz, Inc.:

– The word “quality” is used often, points and reverse control points These proven techniques, coupled but what does it really mean? A are provided for under the Mon- with the stringent requirements simple definition is, “There are no itoring and Testing Plans (MTP). of Russian normative documents, defects to equipment or docu- The project employs only highly will produce a “world-class” facili- mentation that delay construction skilled and competent personnel, ty that will well serve CPC and its activities or impact long-term re- which is confirmed by certifica- shareholders for 40 plus years! liability of the completed facility”. tion and knowledge checks. All This is easier said than done; how- the already mentioned project Assurance of Quality at the Shore ever on the CPC Marine Terminal elements are strictly verified for Facility and Tank Farm Construc- Expansion, we are accomplishing compliance with the ISO 9001 tion sites in Novorossiysk has this mammoth feat! standard requirements in the been successful; but has not been course of Quality Audits. without some challenges. Chevron (as Project Management Contractor) is utilizing “inter- Quality assurance and quality For example, in the early stage national best-practice” Quality control measures at the Marine of construction, we had hairline Management techniques. Terminal are not limited to the cracks in some concrete pours. scope of construction work in The situation was investigated and Plans and procedures are devel- Novorossiysk. In effect, this is a mitigation in the form of revised oped and technical requirements global initiative where major en- “slump control” and water resis- are monitored in order to create gineering and production efforts tance ratings were employed. well-adjusted work processes for are performed in Russia, Finland, Furthermore, the Quality Group quality assurance and observance Croatia, Italy, Greece, Germany, was involved in coordinating of basic quality requirements. the Netherlands, France, Spain, with CPC and the Independent Coordination of subcontractors the United Kingdom, India, Cana- Technical Oversight the allowable and suppliers and risk based da and the United States. limits of verticality of the series inspection (RBI) are performed shell rings during the construction in order to ensure reliable static For critical equipment manufac- of the first three tanks to ensure data in respect of quality indi- tured in remote facilities, “we compliance with the API-650 inter- cators and to channel limited were there” for Vendor Quality national standard. available resources into critical Assessments, Pre-production tasks. Furthermore, we inspect Meetings, Inspections during crit- In conclusion, the Quality Effort the facilities of our suppliers and ical manufacturing stages, Facto- for the Marine Terminal is not a perform incoming inspection of ry Acceptance Tests (FAT’s), and “sprint”; it is a “marathon”. We materials to make sure there are Final Inspections for shipping. We are now complete with more than no defects prior to the start of have had full-time Inspectors at 30km of this 42km marathon; but installation. Appropriate mea- some remote RF manufacturing we are well-hydrated and have ad- sures of monitoring in respect of facilities (such as Saratov, Chel- justed our stride to the roughness each of the Project’s disciplines yabinsk, and Izhevsk) for nearly of the road. We will persevere and as well as the practice of control 2 years. prevail!

22 Panorama CPC September 2014 www.cpc.ru IN FOCUS: MARINE TERMINAL

“Safety as a Value”

Matthew James Portacci, Health, Environment and Safety Manager (HES) Chevron Neftegaz, Inc.:

– If your goal is to realize a Con- want to, and not because they have Based Safety” (BBS) observation struction Project with a Tank Farm to. It is a culture, where the leader- process. BBS is a peer-to-peer for 1 mln m3 of oil, with more ship consistently demonstrates care observation and feedback process than 1,500 km of pipe line and a and concern for the workforce and that recognizes good behavior number of pump stations, when values human safety. and safe conditions, as well as you need to involve over 1,500 helps identify unsafe behavior people from different countries Building such a culture is most about and conditions. One of the areas, and companies, it becomes a real changing a mindset. For Chevron where unsafe conditions were challenge. How can you do it PMC, this wasn’t a new direction, observed, was related to eye promptly, to high quality, in accor- but for “Koksokhimmontazh” as a protection. The problem was dance with schedules and budget, Contractor and all the Subs it was particularly acute for welders and local and international laws and totally new. installation workers. regulations, and be SAFE? The IIF Leadership Team composed Therefore, an “Eye Safety Cam- You may say that we should put of Chevron and KKhM people is con- paign” was launched on the proj- SAFETY as a PRIORITY, because hu- stantly monitoring the situation, and ect. We took a special approach man life is priceless. But the bad based on the feedback they are re- for this. We involved people who news is: PRIORITIES can CHANGE. ceiving a number of “fit for purpose” knew from their personal experi- When you are behind schedule, IIF workshops have been created. ence what eye protection meant. productivity may become the Two blind individuals from the number one issue. When you are 18 months ago, we started devel- Russian Society of the Blind were running over budget, costs be- oping our “IIF Driving” program. invited: they had lost their eye- come your first priority. So, where Furthermore, we developed and sight in work related accidents. should SAFETY be? The only way implemented the “IIF Driving for Their willingness to share their to keep your crew safe and sound Passengers” workshop, where all stories and provide encourage- is to look on SAFETY as VALUE. staff and even family members get ment to all of us to follow safety VALUES do not change. a better understanding of how they rules was an effective message can influence safety while just being that was powerfully delivered. The Caspian Pipe Line Expansion in a car as a passenger or walking as Based on these workshops a Project enlisted help from JMJ a pedestrian. training DVD has been made for Associates and their copyright distribution on distant locations. program “Incident and Injury We also implemented the CPC-initi- Free” (IIF). IIF is more than a pro- ated “Kilometer Diet Program” that By the end of the first half of gram, it’s a culture where people reduced our mileage by more than 2014, we have achieved more are encouraged to speak openly 10% and eliminated unnecessary than 10 mln man-hours worked and honestly, rather than to be trips and risks. without time loss due to accident afraid of being punished; to take or injury. We are proud of that, on safety as a value and follow the One cornerstone of having a good but we understand that we still rules and regulations because they safety culture is a robust “Behavior have a long way to go. www.cpc.ru September 2014 Panorama CPC 23 IN FOCUS: MARINE TERMINAL

Construction amidst the rocks

THE MARINE TERMINAL’S TANK FARM IS LOCATED IN A HILLY AREA, 9 KM FROM THE SHORE FACILITIES.

FROM ALL OVER RUSSIA Pacific coast, he supervised the construction of the “Transneft” The Tank Farm, or TF, as special- Far East Oil Terminal at the special ists often say for short, is located marine oil port, Kozmino -- the away from population centers end point of the Eastern Siberia – and is completely hidden from Pacific Ocean oil pipeline. view by surrounding peaks. If you Vladimir Khartonyuk happen to pass it, you only learn AN ILLUSTRATED about its existence from the road signs: there’s a turn to Abrau- SUMMARY 9 and 10) had barely risen above Durso, a turn to Ozereevka and ground level. Two shell courses finally -- an exit ramp to the Tank An imposing scene appeared had been welded together at Tank Farm. An almost straight, steeply before us. There are roughly 75 No. 10 and one at Tank No. 9. At rising access road took us to the hectares of land on several levels Tank No. 7, a circular foundation entry checkpoint. There we put on with around 2,000 workers and and a watertight screen were be- coveralls and PPE, including hard some 200 pieces of machinery ing installed. hats, eye protectors, special vests involved in the effort of erecting and special boots with metal-lined six 100,000 m3 tanks, a transform- The scope of work involved in tips, and then “Koksokhimmon- er substation, firewater pump constructing a tank is best char- tazh” Deputy Project Manager station, fire station, operations acterized by the fact that some Vladimir Khartonyuk led us to the service base, lightning protection 3,000 tons of structural steel need construction site. system and other facilities. to be welded together for each tank to be erected. Judging by the area code license Since the tanks are erected in two plates on the cars parked by the phases, they are currently at dif- HARDER THAN CONCRETE workers’ accommodation camp, ferent stages of readiness, which people from all over Russia are makes the whole site a very real The scope of the earthwork is im- involved in the CPC Tank Farm “illustrated summary” of the tank pressive. Some 2,5 mln m3 of rock construction effort. As regards farm construction! For example, had been excavated and around Vladimir Khartonyuk -- an expe- Tank No. 8 (we had visited the site 2 mln m3 processed and laid. rienced specialist with a record in the second half of July 2014) Incidentally, most of the processed of handling a number of similar was ready and even painted, Tanks rock was marlstone -- a heavy, projects -- he came to Novorossi- Nos. 4 and 6 were being painted, stone-like sedimentary rock. It is ysk from Nakhodka. There, on the while the Phase 2 tanks (Nos. 7, even denser than concrete.

24 Panorama CPC September 2014 www.cpc.ru IN FOCUS: MARINE TERMINAL

chines. An additional problem for the contractors was connected with the fact that during the Tank Farm’s original construction tie- ins were not moved to outside the grounds, which is why additional measures had to be taken to en- sure their safety.

For overcoming these and oth- er problems effectively a CPC Construction Headquarters was established, which, vested with a considerable power of authority, helps to minimize bureaucratic red tape.

-- Earlier, we had to wait up to 10 days for an answer even to a very Tank foundation reinforcement simple question, and that held us back considerably, -- Khartonyuk explained. -- Now, all decisions are – One m3 of concrete weighs 2,500 -- As things stand today, the Tank made noticeably faster, without kilos, while the same volume of Farm expansion Phase 1 scope of red tape. marlstone is as heavy as 2,800 earthwork is almost complete, tons, Khartonyuk told “CPC Pan- -- Khartonyuk went on. -- What is Over the period of three years ap- orama”. -- The mineral is heavy, left to do is only pipeline backfill proximately 70% of the construc- viscous and hard to shatter. and landscaping. tion work had been completed at the CPC Marine Terminal’s Tank When performing earthworks at WE WILL COMPLETE Farm. The remaining 30% has to the site of Tank No. 7, “Koksokh- be done in one year. A challeng- immontazh” deployed a special WORK ON TIME! ing, but quite manageable goal. cutter-loader. However, that was Without doubt, the Expansion the only site large enough to Another challenge is the installa- Project has already entered its accommodate a machine like tion of onsite utilities. The Tank homestretch, though it won’t be a that. The mighty machine proved Farm Expansion Project calls for short one. effective and fast in turning the laying a total of around 500 km of solid rock into ballast and loading onsite utilities! Since the routes of -- Of course, we will complete it it onto a dump truck. This allowed new cables cross existing utility all on schedule. “Koksokhimmon- avoiding working with a consider- lines and process pipelines, the tazh” has never let anybody down, able number of hydro-hammers, work needs to be performed with -- Khartonyuk assured us as he said crushing machines and excavators. special precaution. For example, goodbye. The cutter-loader processed a total trenches are excavated manually, of around 100,000 m3 of rock. without even small-scale ma- By Pavel Kretov

www.cpc.ru September 2014 Panorama CPC 25 IN FOCUS: MARINE TERMINAL Alexander Soloviev: �There is always room for improvement�

“First visit to the marine terminal? No? Then you have to see Soloviev first for instructions!” - such were the press service’s words of welcome on our arrival at this tightly regulated CPC facility. Within a few minutes we were talking to Alexander - Lead HSE Engineer.

Our meeting was to feature in – It’s not easy to put into a few Lighting, the microclimate, poten- this issue of “CPC Panorama” – we words...– he replies. – Ensuring the tial injury risks... Sometimes we could not have done a full story safety of work carried out by con- hear directly from staff who are on the Marine Terminal without tractors both for the Expansion unhappy with something at the covering the area supervised by Project and as part of maintenance workplace and we try to identify Alexander Soloviev. Any and all – access clearance, risk assess- the problem. If anything proves to activity in the shore facilities or ments, identifying the necessity to be out of line we set out to return on the tank farm construction and use protective gear and so on. That it to normal. operation sites is only undertaken is how we start every day. with special permission from the – What particular problems have safety experts who closely monitor Then the next thing is to check been solved in this way? every stage of the work in prog- the workplace conditions for the ress. Company staff, and in this task we – Here’s a recent example. Several are assisted by a hired laboratory members of staff working in the – The scope of your responsibil- that performs the measurements main building were complaining ities is pretty much covered by and tests we request. They used to about headaches. We called the your job title – but what does call it workplace assessment – he laboratory straightaway, measured it involve in practice? – we ask continues, – but now it is “work- the geomagnetic fields and dis- Alexander. ing conditions special evaluation”. covered the reason: the commer- cial frequency cables next door. People were promptly removed from the room and relocated to safe workplaces. At the moment materials are being purchased to screen the cable lines.

Alexander Soloviev has been at the Marine Terminal for nine years, and he has noticed the continuing improvements in the facility’s working conditions.

– This administrative building No. 2 where we are having this conversation is six years old. Be- fore that we had a temporary sin- gle-story office inherited from the builders, – he recollects. – It was a wooden unit, a fire hazard. The workplaces in the new premises are excellent and as a safety ex- pert I consider this to be of great importance. The modern Marine

26 Panorama CPC September 2014 www.cpc.ru IN FOCUS: MARINE TERMINAL

Terminal buildings are completely safe in all respects and designed to withstand a scale 9 earthquake as required by building regulations in this region. Before joining the Consortium Alexander was employed by the Nizhnevartovsk subsidiary of a large oil company where he took part in a full repair of the well. There he was face to face with oil, so to speak.

– At CPC we never see the oil and can only follow its progress to the tankers by reading the me- ter, – he remarks. – The terminal is top-notch in terms of its envi- ronmental safety. All equipment has been tested and the tank farm reservoirs have concrete barriers against oil spillage. The project standards for maintaining docu- meeting with Chevron and build- is also extremely well thought mentation are set. Initially this ing contractor representatives, the through as far as the shore facil- is taken care of by the head of the deputy regional manager, mainte- ities are concerned. When rep- tank farm, his deputy and shift nance manager and HSE experts. resentatives from the Fire Safety masters and the check-up results – Any check-up is about raising any shortcomings as well as un- Alexander Soloviev has been at the Marine Terminal avoidable reprimands to certain for nine years, and he has noticed the continuing members of staff. Do you ever improvements in the facility’s working conditions have to deal with misunderstand- ing or resentment? – is our final question to Soloviev. Inspection Service, the Federal Ser- are recorded in the industrial, fire, vice for Environment, Technology environmental safety and work- – When, upon finding that some- and Nuclear Oversight, the Federal place conditions log. At the next thing is not up to standard, we Service for the Oversight of Con- level this monitoring is taken over approach the mechanics or electri- sumer Protection and Welfare, the by the Regional Standing Com- cians with suggestions for improve- Russian Federal Fisheries Agency mission for Production Control. ment, everyone is perfectly all and other regulatory bodies visit The third stage is assigned to the right with that and reacts accord- us they say: “We have yet to find CPC Standing Commission for ingly, – he says. – It never happens a better facility, you must arrange Production Control chaired by the that someone brushes us aside, guided tours!” This kind of praise General Director of Operations saying: “I’m not on the production is a result of the Company’s inte- First Deputy or the Chief Opera- side - no time for you!” There is grated industrial safety approach. tions Manager. The commission always room for improvement. It’s the best validation of the joint consists of managers, heads of Having reached a certain level we efforts of the Marine Terminal departments and divisions and go deeper into the operational experts and their colleagues from experts from the Moscow office. network and uncover further goals the Moscow office. One of the main goals that the - just as it should be. We move from experts at the Marine Terminal are the more substantial problems to The facility has its own Produc- striving to achieve is the Expan- smaller scale ones, which at first tion Control Regulations Policy sion Project implementation – glance seem less important. But describing in detail monitoring increasing the tank farm capacity specialists know that in oil trans- procedures for work progress, and ensuring maximum efficient portation there are no such things workplace conditions and indus- construction schedules within the as trifling matters. trial safety; provisions are in place limits of operational safety. It is for daily on-site check-ups and discussed every Friday during a By Ekaterina Suvorova www.cpc.ru September 2014 Panorama CPC 27 IN FOCUS: MARINE TERMINAL

The axiom of environmental well-being

THE CPC MARINE TERMINAL IS ONE OF FIVE MAJOR TERMINALS OFFLOADING OIL AND OIL PRODUCTS INTO TANK- ERS IN THE PORT OF NOVOROSSIYSK. THE FOUNDATION FOR THE TERMINAL’S HIGH ENVIRONMENTAL PERFOR- MANCE WAS LAID AT THE STAGES OF DESIGN AND CONSTRUCTION OF THE MARINE TERMINAL’S FACILITIES.

Added to the Armory combustion end product genera- power line, leaving the generators tion, which allowed reducing toxic to serve as a backup power source. In order to prevent the release of oil wastes by 75%. Despite that, these vapors into the atmosphere, crude turbine generators were still re- The result was a 60% reduction in oil storage tanks have been equipped sponsible for up to 80% of the total the Marine Terminal’s annual total with specially designed floating roofs amount of emissions into the at- emissions in 2013. with tight secondary lock valves. mosphere. “Total amount” sounds POSSIBLE, BUT NOT CPC demonstrates its social responsibility not in words, EXPEDIENT but in deeds. While implementing large-scale construction under the Expansion Project and increasing oil offloading Asked whether it was possible to volumes, CPC is pursuing one of its top priority goals – achieve any further reduction of atmospheric emissions, Marine reducing the environmental impact of its activities Terminal environmental engineer Liliya Flyaum replied: Effluent from equipment and pipe- a bit strong in this context since lines flows into subsurface drainage the remaining 20% were represent- – Yes, it is possible, but only at systems toward the high-tech water ed by the emissions generated in the expense of tanker loading treatment systems of the Marine Ter- the oil transportation, storage and efficiency, i.e. at the expense of minal. The maximum safety method loading reduced to the minimum. our operating efficiency, which is of tanker loading was adopted: from Nevertheless, the Marine Terminal absolutely inexpedient from both single-point moorings located far management decided to eliminate the economic and environmental from the shore. the impact of turbine generators viewpoints. Why should we do by switching the facility over to that given that even working at Originally, electrical power for the external power supply. In 2012, maximum loading rate we have needs of the Marine Terminal was CPC, at its own expense, built the never violated hygiene standards generated locally. Power gener- “Neftenalivnaya” substation for for atmospheric air quality at ators were driven by turbines connection to the “Kirillovska- the boundary of the established equipped with suppressors of fuel ya-Solnechnaya” high-voltage sanitary protection zone, not to

28 Panorama CPC September 2014 www.cpc.ru IN FOCUS: MARINE TERMINAL

mention residential areas closest sites) is 1 km. Here I would like to to the Marine Terminal, which explain that the radius of a sanitary is located beyond that boundary protection zone is the distance from located in close proximity to the the nearest residential area, at which Marine Terminal? hygiene standards established for such areas must be observed. It is Emission reduction is not a goal in set at 500 m for the Tank Farm and itself, -- she remarked. 250 m for the shore facilities.

Having already once received the official confirmation of compliance with ISO-14001, CPC permanently demonstrates its environmental performance management efficiency and permanently improves its environmental responsibility

– Emission reduction is necessary Nevertheless, in order not to cause when pollutant concentrations in discomfort for people living near Liliya Flyaum the air of residential areas exceed the the Marine Terminal or coming applicable hygiene limits. For this here on vacation, CPC specialists purpose Maximum Allowable Con- have performed calculations to de- the wave of a magic wand. CPC has centrations (MAC) are established. termine wind conditions (velocity developed and is implementing a MAC is the concentration of a given and direction), at which the odor comprehensive Industrial and En- substance (determined by public of oil flowing through the pipe- vironmental Monitoring Program. health experts) which is low enough lineinto tankers may reach the to have no impact on humans living shore. If such a likelihood exists, As we were told, the environ- in the affected area. It our case, CPC immediately reduces the rate mental safety of CPC activities is the level of pollution is 0.8 MAC. of tanker loading. ensured by a unique system of Therefore, it would be unreasonable automated tracing of all processes and illogical to reduce the efficien- Over the five days of our business related to oil transportation and cy of tanker loading for the sake trip, my colleague and I visited all its loading into tankers, capable of of additional emission reduction. Marine Terminal facilities, in- prompt detection and immediate All the more so given that tanker cluding the Tank Farm and shore response in the event of a leak. It is loading operations are performed facilities. We even went into the common knowledge that there has at a 5 km distance from the shore, sea on a tow-boat to watch super- not been a single emergency of this and light hydrocarbon fractions tanker loading from the permitted kind during the entire term of the disperse almost completely before safe distance of 1 km, and we did Marine Terminal’s operation. And, they reach the coast. There is no not smell the odor of oil. the locals are certain, they should sanitary protection zone established never occur in the future, as they for the SPMs because the maximum Such environmental well-being is are doing their best to ensure the radius of such zones (for oil loading not something that comes with reliable operation of MT facilities.

Tank Farm construction is performed in compliance with Vineyards are doing well in the neighborhood of the Marine all applicablewww.cpc.ru environmental regulations Terminal September 2014 Panorama CPC 29 IN FOCUS: MARINE TERMINAL

Out in the country

KONSTANTIN SAVCHENKO, COMMUNICATIONS MANAGER, AND SANAL CHIMKINOV, SENIOR SCADA ENGINEER, WHO BOTH WORK AT THE OPERATIONS CONTROL CENTER, ARE AMONG THOSE EMPLOYEES OF THE MARINE TERMINAL WHO HAVE SETTLED IN FAMILY HOMES NEXT TO THEIR PLACE OF WORK.

Konstantin Savchenko, along with dolphins playing in the clear water his wife and two sons, moved here next to the Marine Terminal. Dolphins are the true masters of the oil harbor at the Marine Terminal in 2001 for his new job at the Op- erations Control Center, when the The Chimkinov family purchased building of the CPC pipeline was land in the village of Glebovskoye completed. and built a house there. What DINING-ROOM FOR THE attracted them there was the quiet DOLPHINS Eventually, Savchenko and his rural life next to a beautiful moun- wife came to the conclusion that tain range, closeness to work, and The sea area around the oil ter- it would be beneficial for their naturally, the local school, which minal is a true dolphin sanctuary. children’s health if they moved to their elder daughter is now enrolled. They feel perfectly safe there. Dol- ecologically safe Yuzhnaya Ozere- phin pods follow ships and some- evka. So they built their family “It is wonderful that our Consortium times delight people with real per- home there. is actively supporting the school in formances as they leap high above Glebovka! CPC bought furniture, the water. Why are these intelli- Soon the family celebrated computers and interactive educa- gent animals so attracted to the oil moving into the new housing tional boards for the school,” says harbor? The fact is that this facility development close to the Marine Sanal Chimkinov, the head of the is strictly guarded –unauthorized Terminal. family. “The football field that the marine traffic is prohibited here, consortium built for the school (the so there is no fishing, including Here, living out in the country best one in Novorossiysk!) regularly illegal fishing. Thus, a rich food means enjoying the clear sea air hosts football tournaments, and our supply exists for the dolphins, and invigorating landscapes. The local team is always winning prizes!” which is why they are so drawn Savchenko family like spending to the oil harbor. People are also time together – they hike in the Sanal points out that there are drawn to the seashore here – close mountains, bike the uncharted many new houses under construc- to the CPC Marine Terminal, land forest trails, and listen to the birds tion in the settlement. He is sure that is available for residential singing. For many years now, that when CPC has finished build- construction is probably the most when in the summer they come ing the kindergarten, there will expensive in the area, and demand to the Black Sea shore, they watch be even more people who want to is growing. Many of the Marine the same familiar site: a family of settle here. Terminal employees also live close to their place of work; some of them were even able to build their family homes in Yuzhnaya Ozere- evka village, the closest location to the onshore facilities. They are the lucky ones – their commute lasts only a few minutes! And don’t for- get the mountains, clean sea and clear air… Those of us who live in big cities cannot even dream of such perks! Konstantin Savchenko sons Friendly Chimkinov`s family By Ekaterina Suvorova

30 Panorama CPC September 2014 www.cpc.ru IN FOCUS: MARINE TERMINAL

At the cutting edge

THE CPC MARINE TERMINAL EMPLOYS A METHOD CURRENTLY USED AT ONLY ABOUT 40 OIL TERMINALS IN THE WORLD.

tons. Having moored at an SPM, Europe, West Africa, the Gulf of tankers are connected to the oil Mexico and the Persian Gulf. pipeline system by flexible hoses. During loading, tankers move According to specialists, few oil freely around the SPM, driven by terminals in the world can com- the winds and currents. pare to the CPC Marine Terminal in terms of equipment and work The buoys are specially designed organization. for marine conditions and the sea bed topography and are capable – For good reason, our terminal has of withstanding a gale equal in won first prizes at various interna- severity to the heaviest one that tional competitions. We are indeed has occurred here in the last leaders in technology and best 100 years. Moreover, the use of practices, – Deputy Regional Man- single point moorings ensures ager for Marine Operations Igor Deputy Regional Manager for Marine Operations Igor Florovskiy very convenient navigation for Florovskiy told “CPC Panorama”. heavy-tonnage vessels reducing accident risk in the Marine Termi- Igor Florovskiy knows what he is nal harborage area. talking about. From the bridge of a LOADING FROM supertanker he has seen oil termi- UNDERWATER A 42-inch diam (approx. nals in many countries around the 1,000 mm) pipeline is laid to each world employing very different Tankers now moor not at the SPM from the shore. Steel subsea techniques, and is very familiar wharves of the oil port, but at arteries run up to an end mani- with the methods and processes the single-point moorings (SPMs) fold. Flexible hoses run from the both onshore and aboard a vessel. located within 5 km of the shore. manifold to an SPM and two lines He can find a common language SPMs are floating buoys attached run from the SPM to a tanker. with the captains and promptly to the sea bed with the help of Similar single-point moorings are resolve any issues, which may suction anchors weighing many used at oil terminals in Northern emerge during tanker loading.

SPM-3 arrives in Novorossiysk. 2012

www.cpc.ru September 2014 Panorama CPC 31 IN FOCUS: MARINE TERMINAL

A WELL-ADJUSTED MECHANISM

As of February 2014, after SPM-3 was put into operation, the Ma- rine Terminal’s shore facilities acquired a configuration which allows offloading up to 70 mln tons of oil annually. Already today, due to the increase in the pipeline transmission volumes, the CPC Commercial Department has or- dered to service two tankers daily.

Possibly, the Marine Terminal team is somewhat happier than the project’s other teams because they have the opportunity to see the results of their work not only as diagrams displayed on comput- er monitors or oscillating instru- ment pointers, but by looking at A special air chamber is used for diving to a 60 m depth the tankers departing from the SPMs. special air chamber and a special – Florovskiy continued. Divers I shared this thought of mine with hose supplying diving gas. While cannot work if sea swell is over Igor, but he dismissed the idea as a a diver is busy working at the sea 1.5 m, velocity of currents above “layman’s approach”. bed, another one is in “standby 1.5 knots, etc. mode” – fully equipped and ready – A layman is unable to compre- for immediate diving if something Once a year, the Marine Terminal’s hend the complexity and thor- goes wrong. Other crew members subsea pipelines are subjected to oughness of work performed by a are also on the alert. an external inspection. This work team of true professionals for the is performed by ANO NITs “Coastal terminal to function as a well-ad- INTERNATIONAL Zone Dynamics” with the help of justed mechanism, and the huge a controllable deep submergence scope of preparatory work per- STANDARDS COMPLIANT vehicle. formed to ensure safe offloading, – he explained. A diver may work at the sea bed During such inspections, special- for no more than 30 minutes. The ists verify pipe position on the The team performs pre-mooring way back to the surface will take ground, the presence of washouts, and weekly equipment checks. another 90 minutes, with stops for concrete erosion, and, if necessary, Every summer, the SPMs’ cargo decompression. Incidentally, all give recommendations for addi- handling system is washed with diving operations at CPC are per- tional diving work. seawater delivered by a specially formed to meet both the relevant chartered tanker. The service life international standards and the CPC Marine Terminal operations of the underwater and floating requirements established by the are arranged to be fully compli- hoses is two to six years, upon Russian Diving Service. ant with the requirements of the the expiration of which they are International Maritime Organi- subject to mandatory replace- – In 2014, for example, 55 days zation (IMO). CPC and contractor ment. Hose replacement is a very were allocated for SPM-2 main- personnel strictly observe all IMO labor-consuming operation since tenance. But this is only enough requirements, including those each section weighs around five in theory. In reality, allowances set out in the International Safety tons. always have to be made for the Guide for Oil Tankers and Termi- weather. This year, it has been nals, which regulates all processes Also, working at a depth of 60 m is far from favorable, and we hope and safety measures to be taken a challenge for a diver, involving a to complete the work in 70 days, during oil tanker loading.

32 Panorama CPC September 2014 www.cpc.ru IN FOCUS: MARINE TERMINAL

MOORING MASTERS “ready” to the port operations operations to be performed to a manager and the latter replies depth of 100 m and a set of hoist- Preparations for safe loading with permission to approach ing gear to perform SPM mainte- begin long before tanker’s arrival the SPM. Now all formalities are nance. Furthermore, “Lamnalco at the terminal. First, the loading complete, and it is time to proceed Chaika” carries a whole arsenal of window nomination request from with mooring and subsequent emergency response equipment, the cargo shipper is considered. loading! including a fire-fighting system, Before replying, specialists study oil skimmers and booms. the tanker’s history of operations This is the moment to say a few and its technical characteristics words about the work of mooring During the entire period of its for compliance with the require- masters. They are also improving operations, CPC has never allowed ments established by the relevant their skills all the time and receiv- a single emergency situation to international organizations and ing new equipment. Nowadays, occur, and the “Lamnalco Chaika” oil companies. Upon completion they use satellite-based position- emergency response systems have of these formalities the tanker is ing to monitor distances to the been used only for drills. The only considered to be “preliminarily ap- moorings. Soon they will receive exception was an incident which proved” and is permitted to head special shock-resistant and wa- occurred several years ago, when for Novorossiysk. ter-protected computers to have “Lamnalco Chaika” responded access to all necessary information to an SOS and towed a catama- However, this is only the first from SPM sensors and SCADA, ran-yacht in distress to the shore. stage of the vessel compliance as- including loading speed, quantity The yacht was taking part in a race sessment. Before permission is giv- of loaded oil, etc. and had broken its mast. en for a vessel to enter Region 670 (CPC Marine Terminal’s operation- A fleet of the contractor company – Since oil transmission volumes al responsibility area), a mooring Lamnalco comprising 11 vessels is have increased, the Lamnalco master must come on board. based in the neighborhood of the fleet will soon be reinforced terminal to service CPC offshore with a fourth tug. Currently, the Following the relevant checklist, facilities. Their largest vessel is the tug is being built to a custom- he performs the vessel’s final mighty tug “Lamnalco Chaika” ized design, and is scheduled examination, which includes with a displacement of 1,020 tons. to arrive at the terminal in May verification of all required docu- The vessel is absolutely unique 2015, – Igor Florovskiy complet- ments and certificates and a visual as it was built specially for the ed his story. inspection. If everything is in CPC project. It is equipped with order, the mooring master reports a diving system allowing diving By Pavel Kretov

Single-points mooring undergoing maintenance

www.cpc.ru September 2014 Panorama CPC 33 IN FOCUS: THE MARINE TERMINAL

Beauty and might

THEY ARE ELEGANT AND HIGH-TECH. THE SNOW-WHITE OUTLINES OF THEIR PIPELINES ENHANCE THE IMPECCABLE BLUENESS OF THE SEA. AS YOU MIGHT HAVE GUESSED, WE ARE SPEAKING ABOUT THE MARINE TERMINAL SHORE FACILITIES. INDEED, IT IS VERY BEAUTIFUL THERE! THE LOCAL STAFF, HOWEVER, HAVE GOTTEN USED TO THE SCENERY AND ARE NOT THAT EUPHORIC. FOR SPECIALISTS, IT IS MOST IMPORTANT TO ENSURE THE SAFETY AND RELIABILITY OF OPERATION.

IN AUTOMATED MODE pumps and two main pumps available here. The Marine Termi- At the beginning of our conversa- nal’s fire-fighting system func- tion with the shore facility team tions in automated mode. If the they told us about the engineering fire-detection system goes off, solutions employed to ensure both a fire alarm signal is generated, process safety and the safety of the and any location of fire will be facility as a whole. To begin with, immediately extinguished with there is an automated fire-fighting the help of manual, mobile or system. A closed-loop firewater stationary fire-fighting means. network, where pressure is per- manently maintained at 13.4 kg, The Marine Terminal team cares is installed underground. Jock- about the planet’s extremely ey pumps are used to maintain valuable resource – fresh water. required pressure in the firewater The firewater reserve is formed system, – process units operator from atmospheric precipitation. Denis Astashkin explained. All rainwater collected within the production sites goes into – In case the jockey pumps fail the firewater reserve after appro- Denis Astashkin to cope, there are two auxiliary priate treatment.

34 Panorama CPC September 2014 www.cpc.ru IN FOCUS: THE MARINE TERMINAL

RULES ARE THE SAME FOR and distribution of diesel fuel – no EVERYONE! more and no less. Looking at the young man speaking enthusiasti- Having noticed that our escorts cally about his work left no doubts always carried gas masks on them, that he had fulfilled himself in his we could not refrain from asking profession. Then, we asked Denis them why was it necessary given to tell us about himself. the existing level of safety? He is not an “old-timer” at the Ma- – Yes, it is safe here and the alerts rine Terminal, Denis believes for are only training ones, – oil prod- anyone to become a member of uct pump station operator Ivan the team they need to be a worka- Spitsyn agreed. – But the rules holic – and have a bit of luck. require carrying this PPE and the rules are mandatory for everyone. Indeed fortune smiled upon this young man from Novorossysk – Strict compliance with all when CPC Marine Terminal requirements and procedures is recruiters appeared at the Marine part of the facility’s strict regime, Academy exactly when he was which is a key to safety, – Denis graduating. Ivan Spitsyn Astashkin echoed. – They looked at the diplomas, and WORKAHOLISM PLUS A found me, among others, fit for emy and the knowledge you really their team. – Upon arrival here, a need in practice? BIT OF LUCK “mentor” was appointed who ex- plained to me how things worked – I studied similar equipment – Denis maintains he is the “rich- here. diesel engines, pumps, pipelines... est” person here because he is Of course, here there are certain in charge of all equipment op- Over 14 work shifts I took prac- specific features, but I’ve already erated at the terminal, except tical training while working sorted them out. the equipment directly involved together with various specialists. in oil transmission. His sphere Also, I took theoretical studies and – Don’t you regret you didn’t go to of responsibility includes such passed exams. I must say, I really sea as you’d dreamed? critical equipment as the water like my job! treatment purifying liquid wastes – The sea is right here. I continue and producing drinking water, air – Is there much difference between with it at the yacht club of the conditioning, fire-fighting, storage the things you learned at the Acad- Marine Academy and I go sailing...

www.cpc.ru Panorama CPC September 2014 35 IN FOCUS: THE MARINE TERMINAL

SWITCH ON YOUR flows further, through dia 42 inch- IMAGINATION es subsea pipelines, into the tanker via single-point mooring facilities – All the facilities of the Marine SPMs. Thanks to the launch of a Terminal work as a single “organ- third SPM within the framework of ism”. Vladimir Dmitriyev has a the Expansion Project, loading can long record in the oil industry and now be performed from two SPMs is currently acting manager for at a time at a rate of 12,700 m3 per Marine Terminal maintenance in hour at each SPM. charge of the Tank Farm and shore facilities. Speaking to “CPC Panora- This illustrates the power potential ma”, he tried to draw a picture of of the modest-looking CPC Marine the Marine Terminal’s “life”. Terminal’s Shore Facilities. And that potential will grow with the – The Tank Farm currently com- progress of the Expansion Project. prises four tanks with floating roofs for crude oil storage. They Transportation volume currently are installed 252 m above sea level equals around 33-35 mln tons of and each has a working capacity of oil per year. After the completion 100,000 m3. Driven by gravity, oil of the Expansion Project, it will flows from the Tank Farm through be increased to 67 mln tons per a dia 56 inches loading pipeline to year, – Vladimir Dmitriyev re- the shore facilities. Then, the oil is marked, finishing the interview. fed through a pressure reduction Vladimir Dmitriyev unit and metering stations and By Ekaterina Suvorova

CPC Marine Terminal has a powerful automated fire protection system

36 Panorama CPC September 2014 www.cpc.ru IN FOCUS: MARINE TERMINAL

BEST OF THE BEST

BOTH MANAGMENT AND STAFF AT THE CASPIAN PIPELINE CONSORTIUM (CPC) HAVE NO DOUBT THAT OUR TEAM IS ONE OF THE BEST IN THE PETROLEUM PIPELINE INDUSTRY. IT IS STILL VERY SATISFYING TO KNOW THAT OUR FOREIGN PARTNERS SHARE THIS OPINION.

like we were co-workers at the same laboratory, not representa- tive of different states.”

At the competition, our contestant achieved a small advantage right after the practical stage. It was important not to lose that at the theoretical knowledge examina- tion. Fanira Akhmetzyanova did not make a single error and was de- servedly placed first by the judges.

Vitaly Pavlov, chief metrologist at CJSC “CPC-R” said: “Does our con- testant’s success reflect the general level of professional excellence In August 2014 Fanira by studying regulatory documents, of laboratory quality engineers Akhmetzyanova, a laboratory qual- expanding their knowledge of at CPC? Without a doubt! I would ity engineer at the CPC Marine theory and honing their prac- even add that this success is the Terminal, won the gold medal tical skills. Even though it was result of a systemic approach – at the international competition the first time that the laboratory we organize competitions in the “Best in Profession” at the Mozyr technician from the CPC Marine Consortium’s regions and remain LOCS in Belarus. Terminal was taking part in the a permanent participant at the competition, she stood her ground multi-laboratory comparative Five of the major Eurasian oil pipe- against her competitors. competitions in Russia. Here is a line companies took part in these fact that is a clear indication of our professional competition: JSC “AK Fanira shared her impressions of staff’s high qualifications: more Transneft”, JSC “KazTransOil”, the competition: “I wish to thank than 90% of our specialists have a JSC “Ukrtransnafta”, JSC “Gomel- the competition organizers at JSC college degree and regularly attend transoil Druzhba”, CJSC “CPC-R”. “Gomeltransoil Druzhba”! The career enhancement training.” Traditionally, each company atmosphere at this professional chooses its best specialists, who in competition was so warm that it By Pavel Kretov turn go through a rigorous process felt like there was more friendship Photography courtesy of of preparing for the competition than competition among us. It felt TransPress LLC www.cpc.ru September 2014 Panorama CPC 37 IN FOCUS: MARINE TERMINAL

as School No. 31 is part of the For the youth of UNESCO Associated Schools Project Network. Here they study UN and UNESCO activities, the Glebovskoye problems of natural and cultural heritage preservation, and issues WHEN AT THE TURN OF THE 20th CENTURY THE TRANS-SIBERIAN of observance of human and RAILWAY WAS UNDER CONSTRUCTION, THE WORKERS WOULD ALSO children’s rights. BUILD BRIDGES, ROADS, TELEGRAPH AND POWER LINES, HOSPITALS AND CHURCHES, COLLEGES AND SCHOOLS... TODAY, A CENTURY LATER, The school principal showed THESE GREAT TRADITIONS ARE BEING CARRIED ON BY THE WORKERS no false modesty in saying OF ANOTHER IMPORTANT INFRASTRUCTURE PROJECT – THE CASPIAN that the students have shown great achievements in sports as PIPELINE CONSORTIUM. well as in their studies. In the recent regional competitions It may take the people from CPC charity expense. It is meant the children took first place in the villages next to the CPC to be used for working with streetball and volleyball. No Marine Terminal some time to handicapped children who are doubt in time their results will remember that just 15 years sight – or hearing-challenged, be just as good in mini-football: ago there was nothing but a or for pupils who have missed CPC presented the school with narrow dirt-track leading to their classes due to illness. a perfectly equipped football houses and summer cottages. It ground with Tartan turf, certified was the pipeline workers who – The teachers used to visit such by the Federation Internationale brought many of the blessings of pupils at their homes. Now there de Football Association (FIFA). civilization to their homes. And is the additional opportunity to today this systematic large-scale keep the educational process UNIQUE IN DESIGN charity activity continues... going via the Internet, with the help of the school site, using Having wished the teachers EDUCATION VIA SKYPE Skype, – she continues. every success in educating the younger generation, our The “CPC Panorama” journalists UNESCO SCHOOL journalists moved on to take a received a warm welcome at the look at a CPC Expansion Project regular public school (municipal When new study directions, facility construction site. Our budgetary general education such as project activities that readers are now probably institution) No. 31 in Glebovskoye require the skills of independent imagining a pumping station, village. From the first moments information search and a laboratory or a tank, but they at the school it was obvious presentation making, were are wrong. Here in Glebovskoye that it has close ties with the introduced as part of the new village the Consortium is international Consortium – or state educational standards, the building Kindergarten No. 18 as is being “sponsored” by it, if we students of School No. 31 turned part of the Expansion Project use the Soviet-era term. There is out to be among the best trained social program. The project a sign with the familiar logo at in the Krasnodar Region and were costs including the design works the entrance, and a big colorful ready to face these innovations. amount to almost 140 mln rub. stand telling about the pipeline company’s activities. No surprise! All the students – Our company started building are completely familiar with the kindergarten in September – The Consortium has really done computers as the school received 2013, – says Sergei Stepanov, a lot for us, – school principal 25 notebooks alone from the CPC director of “Novoshipstroy” Angelika Kalinobrodskaya charity providers. LLC. – By mid-summer 2014 expresses her gratitude. – The the facility was more than 50% rooms are equipped with modern The students also have long ready. computers, interactive boards, air been using the World Wide conditioning and new furniture. Web for communication with The utility engineering works their friends from different are completed. About 80 people In 2013 the school equipped a countries. They have a great are involved in the building room for distance learning at deal to discuss with their peers works.

38 Panorama CPC September 2014 www.cpc.ru IN FOCUS: MARINE TERMINAL

Children from the sponsored school enjoy posing with a new issue of the CPC corporate magazine. “Are we going to be in it, too?” – they keep asking.

– The kindergarten Improvement works on the construction works are being surrounding area are being conducted to a unique design conducted in parallel with the also by “Novoshipstroy” construction of the building LLC in cooperation with itself. The construction workers “Novorosgrazhdanproekt” CJSC, promised to preserve all the – adds Igor Vinogradov, the precious coniferous trees that regional and local authorities grow here, and also to plant communication manager more trees, lay out flower beds (Group for Laws and Regulations and grass lawns, and create Issues, Expansion Project). – It paths. Sergei Stepanov and would be enough to say that it Igor Vinogradov is going to be the only project In accordance with its contract of its kind in Novorossiysk with with CPC, “Novoshipstroy” will its own swimming pool. The not only build but fully equip the kindergarten will be equipped childcare center with furniture, with independent power systems kitchen, laundry and ironing – a boiler station operating both equipment, toys and playground with gas and liquid fuel, and accessories so it is ready to waste treatment facilities. operate. At the end of the year the house-warming party will The roof-work was completed be celebrated by 160 children. in August 2014. The roof is the To make it even better, the source of the builders’ special contractors are already choosing pride as its complex structure a spot for a Christmas tree. When the grown-ups are trying to please allows it to blend harmoniously the children, everything goes just right! into the surrounding landscape. By Pavel Kretov www.cpc.ru September 2014 Panorama CPC 39 IN FOCUS: MARINE TERMINAL

A dream fulfilled

WHO HAS NEVER DREAMT OF GOING ON A JOURNEY ON A HOME-MADE RAFT? WITH A HEAD WIND, VAST RIVER VIEWS AHEAD, A ROMANTIC ATMOSPHERE, RISK, ADVENTURES... MANY MUST HAVE DREAMED ABOUT THIS – BUT FEW HAVE FULFILLED THEIR DREAMS. ALEXANDER BOROVSKY IS ONE OF THOSE WHO HAVE.

HE MADE THE DECISION flows into the White Sea, in theory ON HIS 55TH BIRTHDAY we could have said ‘Hi’ to the White Sea from the Black Sea. Alexander Borovsky has worked as a driver at the CPC Marine Terminal They traveled about 200 km on since 2002. This past January he cel- a journey of five days and four ebrated his 55th birthday and in the nights. Alexander says that they summer he went on a rafting trip on would have kept going but his the Vaga river in his native Arkhan- companions were frightened by Alexander Borovsky putting together his raft gelsk Region with a team of family the weather that suddenly wors- members who shared his plans. ened. It was really scary: a heavy thunderstorm, lightning right other stuff: the mast, paddles, equip- – A raft was my childhood dream, close to them, and the small raft ment. There were four of us. Would Alexander says. – As young people, with its metal mast seeming so the raft withstand the load? Or would we also used to swim down the solitary and vulnerable on the we have to sail knee-deep in water? river on logs: we would hammer endless ribbon of the river. So they them together with two planks had to make for land. The thunder- However, all such fears proved and head out. I am originally from storm subsided but they decided groundless. The raft turned out the Velsky District, which con- to end the journey there. reliable and mobile. It floated sists of numerous villages scat- smoothly. Although the launch tered along the bank of the Vaga THE COSTS OF BUILDING was still not without stress. river that flows into the Northern Dvina. Since the Northern Dvina A RAFT – When we were putting togeth- er the raft on the river bank, a Building a raft turned out to be local TV reporter came to see difficult, stressful and costly. All us,’ Alexander recalls. ‘They had the components of the future already been told by someone raft were prepared in Novorossi- that something extraordinary was ysk. Then, the resulting 315 kg going on at the river bank. When load was shipped by plane to the the reporter found out that we Arkhangelsk Region. Already there, were going to sail in two hours, he Alexander Borovsky and his niece’s asked us to wait until their cam- husband Viktor sent all the equip- eraman arrived. So we ended up ment to the district center Velsk, being filmed as we sailed away. the starting point of the journey. When asked about the financial – My workmates also helped, in aspect of the endeavor, Alexander word and deed. Personally I was replied that it proved costly but very worried that we would make he did not regret spending the fools of ourselves and that the raft money because “the experience wouldn’t be able to sail. was worth it”. He would “just keep on sailing and sailing. The freshly cut wood was moist and The raft ready to sail off very heavy. How would it behave in – It was so scenic and romantic! – Al- the water? There was also so much exander explains. – I love traveling.

40 Panorama CPC September 2014 www.cpc.ru IN FOCUS: MARINE TERMINAL

I would probably be able to survive mattresses and lay down to sleep. It also emerged in our conversa- outdoors under any conditions. And even though they had brought tion that a raft was only Alexander warm clothes, they were still freez- Borovsky’s little dream. His big OFF TO ADVENTURES ing. In addition to the cold nights, dream is still ahead. another issue were the mosquitoes, On the first day, the travelers still gad-flies and horse-flies. Not even – When I was a teenager, I worked lacked experience and paddled repellents helped against the latter. at our school forestry every summer fiercely. When we were pretty ex- However, the main challenge were since the 5th grade. We were plant- hausted, we thought - why paddle? the occasional shallows that made ing pine trees on pieces of waste It was supposed to be a fun sail, not the travelers beach four times. land left over after fires. You would a race. So we started to sail calm- go over the waste land, planting ly, only sometimes adjusting the – One time we got really stuck, at trees in one direction before lunch position of the raft in the river. We Borvinka, – Alexander remembers. and in the other direction after cooked meals (all necessary cooking – We started to push. We had no lunch. And you could keep going facilities were on the raft), watched energy left. I was already thinking like that for several days. But the the surrounding views and enjoyed that sand would come over us and following year, you would come the beautiful,always changing land- we would stay there like a monu- back and see that only a few plants scapes. There was amazing nature ment. But the four of us knuckled had survived. Because the work was around, little villages, the taiga... We down, went at it - and made it. done just to “check the boxes”. But would sometimes stop to fish, or to in reality we were just leaving the pick mushrooms, or to ‘splash in JUST DO IT little trees to fend for themselves, the water like kids.’ so that only the lucky ones survived. Despite such challenges he’s expe- So my dream for when I retire is According to Alexander, at first the rienced, Alexander Borovsky isn’t to go back to the North, build a wind bothered them a lot, which planning to rest on his oars -- he’s little log house, get some land and was why it once took them three determined to repeat the journey. organize a school forestry, in order hours to pass a single village. On to plant pine trees again, but this top of that, the river meandered a – Although next time we’ll work time using proper methods and lot in some places and the banks more closely on our itinerary. We with my soul in it. I mean, Velsk were grown very thickly, so it was will pick a river, there are plenty pine trees have been famous since not until after midnight that they out there: the Onega, Mizen, Pin- long ago. They were used for ship found a spot to spend the night. ega, Ustya, Vata... You can sail to construction in the days of Peter the They set up tent, pumped up the your heart’s content! Great. The pine trees were so high and slim. Probably you can’t find one like that anymore...

Everyone should have a dream. And it does not matter whether it’s big or small, easy or challeng- ing to accomplish. In any case, a dream makes you move forward and not focus on day-to-day hard- ships -- it shines on your life and makes it bright and meaningful. To get closer to your dream, you just need to take the first step, like Alexander Borovsky did. He has only one piece of advice:

– Just do it. Some people didn’t believe me, they would say: “How will it sail? Where will it end up?” But everything went smoothly. The journey was a success. Camping By Ekaterina Krapivko www.cpc.ru September 2014 Panorama CPC 41 EXPANSION PROJECT

Just like at the Olympic Games, the competition started with the teams’ parade

Olympic levels of safety

THE CPC EXPANSION PROJECT SAFETY (RUSSIAN FEDERATION CONSTRUCTION PROJECTS) OLYMPIAD WAS HELD IN LATE AUGUST IN THE STAVROPOL TERRITORY. THE ORGANIZERS OF THE EVENT, WHICH TOOK PLACE ON THE “PS-4” OIL PUMP STATION, REMINDED ITS PARTICIPANTS OF THE ULTIMATE IMPORTANCE OF PROJECT SAFETY.

Guests were greeted by William Sovetskorunny Rural Commu- Simpson, CPC Deputy General nity welcomed visitors to the Director, Projects & Engineer- Olympiad. ing, Igor Lisin, Oil Pump Station Construction Coordinator for The competition program con- the Russian Federation, Vladimir sisted of such exciting events Kozlov, Administration Head of as “Fun Starts”, “A Friend Izobilnensky region, and Alex- in Need is a Friend Indeed”, ander Nakonechny, Head of the “Powerful Minds”, “Wonders in

42 Panorama CPC September 2014 www.cpc.ru EXPANSION PROJECT

the Turns”, and others; the list of competitors included subcon- tractors of the CPC Expansion Project, “Transneftstroy” LLC, “EFESK” Group of Companies, OJSC “Stroynovatsiya”, “Con- tact-C” LLC, “Velesstroy” LLC, CJSC “KHM Trust”. Staff mem- bers from the CPC subcontractor companies gave spirited perfor- mances at the amateur talent show, while representatives of the shareholder companies and members of the CPC man- agement team served as com- petition judges. The winners of different categories received their awards from Sergei Ruzan- ov, CPC Project Management Dennis Fahy (right) and Vincent The winners received medals and Director, Igor Lisin, Oil Pump Richard were active participants in the commemorative awards Station Construction Coordina- Safety Olympiad tor for the Russian Federation, and William Simpson, Deputy General Director, CPC Expansion Project and Engineering.

Stavropol performing arts ensembles continued the enter- tainment. A festive dinner was followed by colorful fireworks. Safety-related events have long become a good tradition at CPC. Safety specialists have no doubt that the level of safety at com- pany facilities will continue to improve.

By Nadezhda Cherednikova William Simpson wishing good luck Team spirit and positive attitude are to the competitors key to success

www.cpc.ru September 2014 Panorama CPC 43 EXPANSION PROJECT

Bringing warmth to children THE DISTRICT CENTER OF THE YENOTAYEVKA DISTRICT IS TWO HOURS’ DRIVE AWAY. WE ARE GOING WITH REPORTERS AND WILLIAM SIMPSON, DEPUTY GENERAL DIRECTOR FOR PROJECTS AND ENGINEERING, TO THE OPENING OF A SCHOOL’S BOILER HOUSE.

building the boiler house. Earlier, to be afraid of freezing temperatures the Yenotayevka School underwent anymore. The boiler house is powerful total reconstruction financed from enough to also serve the Children’s charitable funds of the Consortium. Rehabilitation Center located An “emergency surgery” was nearby. It was custom-made using performed to replace windows, doors, high-technology Italian equipment. W. Simpson particularly liked heating systems and roof coverings According to the contractor’s the electronic fuel injection of the “seriously ill” building. representative, commissioning will system of the boiler house’s gas Specialists “reanimated” utility lines start in September, immediately turbine and “rehabilitated” dangerous wall after authorization documents areas in the gym. Its condition is now are received. Specialists will set The boiler room is an important stable and good. The overall cost of the engine and the heat supply is contribution to the reconstruction of “reanimating” the school building scheduled to start on October 16 of the local school. The implementation was 32 mln rub. this year. Notably, the boiler house of our social project at the will be able to function during Yenotayevka District of the Astrakhan However, one problem remained: emergency power shutdowns since it Region would not be complete it was cold at school. The school will have a gas generator installed. without it. building is more than 30 years old, and each year it was increasingly A momentous occasion: W. Simpson At the premises of the municipal difficult for the old walls to keep and the Head of the Yenotayevka budgetary general education the heat in. -– It was freezing in District S. Mikheyev cut the institution “Yenotayevka Secondary classrooms in the winter and the traditional red ribbon, and the School”, we were awaited by regional children were constantly sick. The headmaster of the school O. Stepova government officials, leaders of the school often had to be closed for is given a symbolic key and the district administration, teachers, quarantine, -– Ekaterina Nikitina, technical passport of the boiler house. students, parents and the mass chair of the school governing council, Guests of the event inspected the media. The atmosphere was festive. explained to us. Now the problem is boiler house and the building of the CPC has invested 10 mln rub in solved and the students do not have Yenotayevka School.

Let there be heat at school! The momentous occasion Head of the Yenotayevka District S. Mikheyev explains of cutting the symbolic red ribbon the details of the boiler house’s mechanism to W. Simpson

44 Panorama CPC September 2014 www.cpc.ru EXPANSION PROJECT

The Manager of the Expansion Project did not hide his happiness: -– I am happy that we can be helpful to people who live in the regions of our operations. Nothing compares to the impressions from such events where you can witness the results of charitable activities of the company, talk to local people and see that thanks to our work, their lives are a little better today than yesterday. We are not stopping at what has been accomplished, we are moving forward. Specifically, construction of an up-to-date school athletic field will start in Yenotayevka this fall, funded by CJSC CPC-R. W. Simpson and the Senior Priest of the Svyato-Troitsky Cathedral Hieromonk German easily found a common language A little guided tour was organized for the CPC guests: they visited the Mr. Kuchumov, the Deputy but also enhance the company’s Svyato-Troitsky Cathedral, viewed Minister for Industry, Transport image in the local community -– he the collections of the Yenotayevka and Natural Resources of the emphasized. -– It is wonderful that Local History Museum, and were Astrakhan Region, told reporters: there exists a business that cares introduced to local traditions. -– CPC-R is not only a reliable about people. economic partner of our region, The event was festive but tasteful, but also an excellent example of a But what matters most is that the without unnecessary pomposity or socially responsible company. children will not be freezing in the formalities. The local authorities winter. They are warm now, thanks are doing their best to support -– A serious comprehensive not only to gas and electricity but also community investment by approach and annual to the care and attention of CPC. business in general, and CPC implementation of social programs programs in particular. not only strengthen our relationship By Alexander Detkov

www.cpc.ru September 2014 Panorama CPC 45 THROUGH THE PRISM OF HISTORY

The first pipeline of Kazakhstan

NEXT YEAR WILL MARK THE 80TH ANNIVERSARY OF THE START OF THE from the sites would reach 300 FIRST PIPELINE IN KAZAKHSTAN, GURYEV-ORSK. THIS DATE IS ALSO people per day, despite the SIGNIFICANT FOR ALL PIPELINE WORKERS OF THE POST-SOVIET ERA: harsh punishments used by DESPITE MULTIPLE HARDSHIPS THE CONSTRUCTORS BUILT THE OIL the administrative-command PIPELINE THAT FOR A WHILE WAS CONSIDERED THE MOST POWERFUL IN system. THE SOVIET UNION AND EVEN EUROPE. LOGISTICS DIFFICULTIES Trench excavation, and the cleaning and insulation of pipes new consumers had appeared, was performed by hand, and which made the transportation then the pipes were lowered issue even more complicated. into trenches with the help of hoists and rigs. Anti-rust coating The Guryev-Orsk pipeline only of the pipes was performed with appeared in the second five- carbonic sand or oil bitumen; year industrial plan of the USSR at certain segments, which State Planning Committee required particularly strong in June 1931, and already by insulation, pipes were wrapped October construction was under in sackcloth prior to treatment. way. The 847-kilometer-long pipeline was to go through In September 1932, the USSR the endless steppe and regions People’s Commissar for Heavy with no rail transportation Industry Sergo Ordzhonikidze of any kind to connect the received a letter informing him rich oil-bearing regions of the of “threatening difficulties” Caspian with the oil-processing in the construction of the The work of the pipeline builders was plant in Orsk. “The Orsk plant Guryev-Orsk oil pipeline. The extremely hard. Trench excavation, and in its turn will provide oil issue of pipe delivery from the the cleaning and insulation of pipes was products to Western Siberia, performed by hand, and then the pipes were lowered into trenches with the help the southern part of the Urals, of hoists and rigs the Eastern Siberia region and a small part of the Central Volga region,” – “Izvestiya” newspaper wrote in June 1932. A CHALLENGING TASK The country gave all it had to In the early 1930s the Soviet equip the builders up with the government set itself the necessary technical resources: ambitious task to achieve almost 3,000 tons of pipes, 50 first place in the world on “International” wheel tractors, most economic indicators. 20 “Caterpillar” chain-track According to those plans, in tractors, 50 trucks, two crane 1937 oil production had to shovels and other machinery. reach the level of 130 mln tons. The situation with skilled labor The main production regions was even worse. There were that were supposed to provide only 40 welders, three foremen almost 85% of all such oil were and five instructors working situated far from the center. at the pipeline construction Also, in response to the forced sites. The job of the front-line Anti-rust coating of the pipes was industrial development of the workers was extremely hard; performed with carbonic sand or oil Soviet country more and more sometimes the labor outflow bitumen

46 Panorama CPC September 2014 www.cpc.ru THROUGH THE PRISM OF HISTORY

Mariupol factory needed to be For transportation of solved urgently. Due to the low equipment the Guryev- capacity of the narrow-gage Orsk pipeline builders railway, no more than 1.5 km would often use “ships of pipes, half of the plan, could of the desert” - camels be delivered to the construction site. 30 new platforms allocated from the Vyatka factory did not arrive on time, while the old ones had completely degraded. Due to lack of tractors, 80% of which were out of repair and awaiting spares, pipes had to be welded in sections each containing 5-6 pipes; without tractors it was impossible to pull the pipes together for continuous welding.

The initial materials and equipment transport route through Stalingrad also proved UNDER THE PEOPLE’S to cope with all hardships despite to be unfortunate. The city was COMMISSAR CONTROL the extreme conditions in which unprepared to handle such they had to work. By the end volumes of cargo. By autumn Sergo Ordzhonikidze was of 1935 the main part of the there were around 1,300 tons personally monitoring the Guryev-Orsk pipeline construction of various equipment “stuck” construction process, but at the works was completed and the in the city, including the pipes beginning of 1934 it was still builders let the oil in. “Pravda” already produced in the second experiencing great difficulties. newspaper wrote about this quarter. Transportation was There were shortages of insulation event on December 8 1935: “For only speeded up by opening materials, wood, forage, water the last several days the city has railway deliveries from transport and petrol. The animal- been living in anticipation of oil. Stalingrad to Astrakhan. drawn transport was also lacking The huge river of oil is coming - in the Aktobe region there were closer to Orsk by every hour. This only 60 carts working instead morning the oil crossed the river of the 450-500 planned. Any Ural. It is now 9 km away from attempt to use additional carts the city. By night the 5,000 cubic met with resistance from the meter tanks will be filled with regional Party committees that Emba oil.” were transporting food products under the conditions of famine The oil pipeline was built that followed collectivization. completely from domestically- As a result, after 18 months of produced materials and fitted work only 240 km of the line out with Soviet equipment. The were ready – and only one year pipeline capacity reached up to remained to weld the rest of 1,200 mln tons of oil per year, the 650 km. And the builders and pressure in it was maintained managed it! by seven pumping stations. It is interesting that during the war 5,000 people were mobilized to years the pipeline was turned into the construction site, which made an oil-products pipeline and was all the difference. Another 60 mln used to deliver Baku oil products rub were additionally allocated that were transferred to Guryev from the state budget. Having via Astrakhan, right to the front. displayed unequalled heroism, the Soviet pipeline builders managed By Pavel Kretov www.cpc.ru September 2014 Panorama CPC 47 IN FOCUS – OUR COLLEAGUES

In the previous issue of “CPC Panorama” we asked you, dear readers, to tell us about your wonderful co-workers. It is a pleasure to say our appeal met with a response. That was how this new section that we are introducing today came about. We are publishing the first efforts and looking forward to new photos and further stories about your colleagues. The driver who is a local history expert a driller and is more than familiar of the stunningly beautiful chalk with the smell of oil and every mountains rising as high as a production detail. seven-story building and how they were only clearly visible at dawn, He was born and raised in before turning into a mysterious Zhylyoisky district, loves local unattainable mirage in the heat of nature and knows everything. the day... As a child he used to listen on the shores of Lake Karash to his As a CPC-K driver Amangali enjoys mother’s stories about the place the views he has known as a child Amangali Saginbaev they lived in, the history of the on the road. He recognizes every region and its people. It fostered hill, every plot of land and can Driver Amangali Saginbaev has his interest in the nature and navigate any country road. been behind the wheel since 1988. history of his homeland and the He comes from a family of oilmen: legends told by his mother of the I offer this simple story by way his father Zholdybaj worked in the batyrs who defended it remained of sincere gratitude to Amangali oilfields in Zhylyoisky district, and in his heart forever. Amangali’s for his help in gathering material his brothers are employed at the father made his own contribution for an article about geographical Prorva oilfield not far from Tengiz. in encouraging his son’s curiosity place names along the pipeline His wife is a lab technician by having ancestors who had lived route. at the TCO Plant. Amangali close to the Akmeshit area on the himself started as a mechanic at Bortau plateau. It is with immense Marzhan Diarova, chief translator for Prorvaneft (Tengizneftegaz) OGPD, love and fondness that Amangali the administrative department in the continued as an operator and still recalls his childhood memories Atyrau office of CPC-K.

A man of his word What can be said about the “Atyrau” PS operator Sergey Rozhkov? He is a responsible man who will not hide behind someone else’s back. A man of his word he does as he says. He is generally very outgoing and fun to be with, also an avid fisherman.

Sergey was born in Russia, in the Perm region. Moving at some point to Atyrau he became as fond of it as of his native city. Here he made friends and got married. Together with his wife Tatiana, they are raising two children.

Andrey Keshishyan, control, measurement and automatic equipment technician, “Atyrau” PS, Republic of Kazakhstan Sergey Rozhkov

48 Panorama CPC September 2014 www.cpc.ru While this issue was in production

An effective ‘oil’ year At the beginning of Sep- tember everyone at CPC celebrated Oil, Gas and Fuel Workers Day. All along the trunk pipeline route – from the Tengiz plains to the mountains of Novo- rossiysk – fellow workers exchanged greetings on their professional holiday, shared their impressions about the past ‘oil’ year and reported their achieve- ments.

The Moscow office staff marked “Kropotkinskaya”. In eight the holiday by the ancient months of 2014 the CPC pipeline Kremlin walls in the historical system has shipped over 26 mln Manezh building on Mokhovaya tons of crude oil and we are street. In a festive mood CPC confident, given the consistent General Director Nikolay increase in throughput volumes, Brunich congratulated those to hit the annual rate of 40 mln who had done especially well tons. This is a result of all CPC and received the “Honorary staff working closely together as Oilman” award and presented an expert team. certificates of acknowledgment and diplomas from the Ministry – Only a few years back a week of Energy of the Russian was considered successful if Federation. we were able to load five or six tankers at the Marine Terminal, – – It was a difficult ‘oil’ year for First Deputy General Director of us and yet a very effective one, – Operations Dennis Fahy added, Nikolay Grigorievich remarked. – – whereas last week we loaded The third SPM was commissioned 10 tankers! We are indeed which allows us to load two becoming one of the largest tankers daily. Construction pipeline companies in the world, of the Expansion Project first at the same time as providing phase facilities on Russian our facilities with the highest territory has been completed stability and safety levels. at PS “Astrakhanskaya”, “Komsomolskaya” and By Pavel Kretov Caspian Pipeline Consortium: a time-tested international project

CPC-R, Moscow Office CPC-R, Republic of Kalmykiya Business Complex “Legion“, Suite 608, V.I. Lenina Str., 255A, 4th floor, B. Ordynka Str., 40, building 4, Elista, 358000, Russia Moscow, 119017, Russia Tel: +7(84722) 4-13-89 tel: +7 (495) 745-87-70 e-mail: [email protected] fax: +7 (495) 745-87-72 e-mail: [email protected] CPC-R, West Region Budennogo Str., 117/2, CPC-K, Astana Krasnodar, Hotel “Beijing Palace“, 350000, Russia Level 11, Esil district, tel: +7 (861) 216-60-00 Syganak Str., 27, fax: +7 (861) 210-35-51 Astana, 010000, Kazakhstan e-mail: [email protected] tel: (7172) 799-271 fax: (7172) 799-272 CPC-R MARINE TERMINAL e-mail: [email protected] Marine terminal, Primorskiy okrug, Novorossiysk, 353900, Russia CPC-K, East Region tel: +7 (8617) 64-25-52 Business center «Seven Stars», fax: +7 (8617) 64-25-51 Satpaeva Str., 34A, e-mail: [email protected] Atyrau, 060011, Kazakhstan CPC-R, Novorossiysk tel: (7122) 76-15-00, 76-15-35, 76-15-99 Vidova Str., 1A, Novorossiysk, fax:(7122) 76-15-91 Krasnodar Region, e-mail: [email protected] 353900, Russia tel: +7 (8617) 61-15-64 CPC-R, CENTRAL REGION fax: +7 (8617) 61-26-90 Kirova/Krasnogo znameni Str., 24A/10, e-mail: [email protected] Astrakhan, 414000, Russia CPC-R, Stavropol Territory tel: +7 (8512) 31-14-00, 31-14-99 Suite 208, Ryleeva Str., 7, fax: +7 (8512) 31-14-91 Stavropol, 355000, Russia e-mail: [email protected] e-mail: [email protected]

CPC Marine Terminal is the end point of Tengiz – Novorossiysk trunk oil pipeline

Prepared by CPC Press service 999 copies. Editor Ekaterina Suvorova Contacts: e-mail: [email protected] Design, layout – Arabesque Communication Group. Tel. +7 (495) 745-87-70 ext. 5220, 5327