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Panorama CPC April 2016 FIRST PERSON Heading Into the Home Straight

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Panorama CPC April 2016 FIRST PERSON Heading Into the Home Straight №1 (12) April 2016 In Focus: The Marine Terminal p. 7-19 Contents: Heading into the home straight • p. 1 / Operations: Result-oriented work • p. 2 / Environmental protection is the priority • p. 15 / Expansion Project: Launch of PS-4 • p. 21 / Thanks to CPC: To the people of Stavropol • p. 24 / Lifestyle: Only the brave can tame the oceans • p. 46 CONTENTS FIRST PERSON Heading into the home straight 1 OPERATIONS Result-oriented work 2 Milestone meeting 4 When the system is in balance 6 MARINE TERMINAL Full readiness 7 To be in front 8 This is part of our biography... 11 Environmental protection is the priority 15 Caring for people 18 EXPANSION PROJECT A huge construction project 20 running on time The Magnificent «Four» 21 THANKS TO CPC To the people of Stavropol 24 PROFESSIONALS Everything is under control 26 By the roads of CPC 27 PEOPLE OF CPC The lady of the house 28 THROUGH THE LENS OF HISTORY At the bottom of an ancient sea 30 The pipeline laid beneath 32 the Ladoga Lake TRADITIONS Following the ancient customs 34 HOBBY With love for the land 37 Astrakhan’s great spaces 38 TRAVELS Paradise island 40 “This is no plain ...” 42 LIFESTYLE Come And Be Caught, Fish 45 Only the brave can tame the oceans! 46 OUR FUTURE Young Taekwondo Fighter 48 “Pride of the Motherland” from Ipatovo 49 Panorama CPC April 2016 FIRST PERSON Heading into the home straight DEAR COLLEAGUES AND FRIENDS, THIS YEAR, THE CASPIAN PIPELINE CONSORTIUM WILL REACH A HISTORIC MILESTONE. IN SEPTEMBER, WHEN ALL THE CONSTRUCTION AND INSTALLATION WORKS ARE COMPLETE, THE PIPELINE SYSTEM WILL REACH ITS DESIGN MECHANICAL CAPACITY OF 67 MTA. THE USE OF DRAG REDUCING AGENTS MAY FURTHER INCREASE THE PIPELINE’S THROUGHPUT CAPACITY TO 76 MTA. Since the launch of the The CPC oil terminal is ready for Expansion Project, the CPC receiving “big oil”: it is already team has been consistently capable of simultaneous loading moving forward towards our of two tankers at a rate of up to goals. In 2015 alone, 19 facilities 24,000 tonnes per hour. were put into operation; 16 in Russia and 3 in Kazakhstan. In Three new tanks were put into December 2015, CPC pipeline’s operation at the Novorossiysk throughput capacity reached 52 tank farm in September 2015. MTA, which is a notable result! Three more tanks are scheduled to be put into operation in the CPC Expansion Project will not Pipeline capacity will be autumn of 2016, to bring the only remain within its budget of further increasing throughout tank farm’s total capacity to $5.4 bln, the assumption is we 2016. Two pump stations 1 million tonnes. shall achieve some savings. are scheduled to be put into operation in the first half This growth will increase the The Consortium’s shareholders of this year: А-PS-4А in the Consortium’s revenues and and its management are Astrakhan region and А-PS-4 in facilitate debt repayment to the happy to note that, huge Kazakhstan. With the launch shareholders. In 2015, CPC paid as it is, the CPC Expansion of these pump stations, the over $1.5 bln to the shareholders, Project is running with good pipeline’s capacity will reach up including $530 mln to the HSE indicators. Being an to 57–58 million MTA. Russian treasury (The state international consortium, CPC shareholding employs only the very best in the project practices and strictly observes is 31%). Given the statutary requirements of the present the Russian Federation. diffi cult fi nancial Now, as we are heading into situation, the home straight of the the money Expansion Project, I’m calling is a sound upon all project’s participants support for our to stay vigilant, disciplined country. and attentive to each other so that we can successfully and In 2016, safely complete our ambitious CPC plans to undertaking and proceed to allocate up to the safe operation of the new $1 bln for debt facilities. repayment At PS-4 commissioning to the Nikolay Brunich, General Director shareholders. of the Caspian Pipeline Consortium www.cpc.ru Panorama CPC April 2016 1 OPERATIONS Result-oriented work THOUGH THE YEAR HAS STARTED IN A DIFFICULT ECONOMIC SITUATION, THOSE COMPANIES, WHICH WORKED HARD DURING THE LAST YEAR TO LAY A FOUNDATION FOR THE FUTURE, TEND TO VIEW CRISIS AS A TIME OF NEW OPPORTUNITIES. HOW WOULD YOU APPRAISE CPC’S PERFORMANCE FROM THIS VIEWPOINT? VICTOR ABMAYEV, GENERAL MANAGER FOR FIELD OPERATIONS ANSWERED THESE AND OTHER QUESTIONS ASKED BY “CPC PANORAMA.” and loading, we have managed Operations entering the fi nal stage it all without a single accident, of the Expansion Project? which is truly impressive.” “We have accumulated a huge – What can you say about the amount of experience from performance of individual regions, the interactions between the which one is the leader? Operations, the construction contractor and the Expansion “As far as the regions are Project’s lead specialists. concerned I would rather not Together, we have managed name any of them specifi cally. to achieve the synchronous All sites are staffed with strong operation of all CPC services. and professional teams. CPC has Coordinated work is under way operational standards in place as by specialists from the Operations well as working approaches and Department, the Expansion algorithms, and each region works Project, procurement, sales, hard to contribute to the common and the system automation goals. One cannot lag behind at department. Together we are a CPC. We are like a military unit on single mechanism, which is why the march, where everybody must we have succeeded in achieving stay in step. our goals of increasing pipeline throughput and commissioning Victor Abmayev: “Together we are In fact, we do not need heroism the new facilities. a single mechanism, which is why here, but we need stable and we succeed in achieving our goals of result-oriented work, the Our top priority is safety, which increasing pipeline throughput and aim being to increase the is the cornerstone of CPC and is launching new facilities.” pipeline’s throughput capacity. absolutely the right approach. Responsibility at all levels – from After all, human life and health – 2015 год, несмотря на сложную top managers to workers – is is much more important than “Despite the diffi cult situation in business as usual for CPC. When anything else.” the country and in the world, the last year was fairly successful for the company as we managed to In fact, we do not need heroism here, but we need lay the foundation for this year’s stable and result-oriented work, the aim being to successes,” Abmayev stressed. increase the pipeline’s throughput capacity “We have fulfi lled nearly all the obligations for commissioning our new facilities and increasing people know what they are doing – What has been done to improve the operational reliability of the and what is expected of them, the operational reliability of the pipeline. We’ve achieved the they can work more effectively. system? milestone target of 52 MTA. We If everybody is aware of ultimate have every reason to be proud of goal it is easier to fi nd optimal “We’ve put into operation both our excellent performance ways, methods and processes.” additional pump stations and and our labour safety record. lots of additional facilities at the Working simultaneously on the – With what professional Marine Terminal. At the same Expansion Project, oil pumping achievements is the Department of time, there has been no increase 2 Panorama CPC April 2016 www.cpc.ru OPERATIONS in the number of equipment “I would rather not divide Yet before a facility is put failures from 2014 thanks to facilities into more important and into operation, we make constantly improving equipment less important. All of them are maintenance agreements with maintenance and monitoring. Ad important and signifi cant since service contractors. We inform hoc commissions have been set up they ensure the stable and reliable our equipment maintenance in the regions, which investigate operation of the pipeline system. contractors beforehand so that each incident of equipment For example, the pump stations they have time to be trained. failure, fi gure out the root causes, commissioned as part of the Maintenance specialists are and send the relevant documents Expansion Project have allowed admitted to our facilities only to the Moscow offi ce, where more us to increase its both throughput after they have passed a strict investigation is carried out and capacity and reliability. The certifi cation procedure, which we perform together with the There is no limit to perfection as we learn something new contractors. every day. We are always learning While a facility is being installed and commissioned, we take care to provide everything necessary – conclusions are drawn. Based on new three 100,000 tonne tanks from amenities to working tools. these fi nal conclusions, measures launched at the Marine Terminal The Operation Department takes are taken to prevent such failures have helped us to pull through the care of the electricity and water in the future. winter gales season at the Black supply, fi re and gas safety and Sea. With the higher capacity of all the other things needed for Unfortunately, there is no such the Tank Farm we were able to reliable operation. thing as a perpetual motion continue pipeline operation even machine. Equipment, which is when forced to suspend tanker As we have learned from our operated 24/7, requires increased loading.” experience, joint efforts by the attention. All our equipment construction and operations maintenance agreements include – When does the Operations teams are particularly important delivery, supervised installation Department join the process of the at the fi nal stage of the Expansion and subsequent post-warranty new facility commissioning under Project.
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