December 2014 In Focus: CPC People p. 20–33 Contents: The General Director and Shareholders of the Consortium – on the results of 2014 6 p. 1–9 / Expansion Project: “We have learnt how to work together” 6 p. 10 / Year of Culture: A gift of new opportunities from CPC 6 p. 18 / About Love – in the female voice 6 p. 36 / Made in the USSR: the story of the construction of the first oil pipeline to the Black Sea 6 p. 40 IN THE FIRST PERSON Nikolay Brunich: “The 2014 Results: Call for Optimism.” DEAR COLLEAGUES, FRIENDS, The passing year, 2014, was the Consortium’s head offi ce in rich in important events and Moscow. Large scale construction will defi nitely enter CPC’s work is under way at the existing history as an important one for facilities, and oil transportation the development of the whole is continually increasing. The Consortium. We have completed successful combination of Phase 1 Expansion Project expansion and operation is facilities and are proceeding possible because we are one confi dently with Phase 2. With team and are capable of almost Facilities). Yury Belov is a relative new facilities already in operation unspoken understanding. At newcomer to the Consortium, but we will be able to achieve a regular meetings with CPC he has managed to quickly blend considerable increase in the regional supervisors I always into the team and has shown him- pipeline system’s throughput see for myself that they are well self to be a good leader. Well done! capacity. Prior to expansion, aware of how things are on the A true leader leads by personal ex- the pipeline transported Expansion Project, and are fully ample and creates a sense of team approximately 30 mln t of oil in control of the situation. In spirit, when he demonstrates a per year, and now given that we our routine work we try hard responsible approach to work and fulfi lled our annual plan ahead of to achieve maximum effi ciency strict compliance with safety and schedule, in September, we expect in the interests of both the other regulations. We completed our year plan for 2014 back Also, I would like to note the in September, and will reach Western Region led by Sergey Potryasov. The launch of the the level of 40 mln t by year end modernized PS Kropotkinskaya was not without problems, but now everything is functioning 40 mln t of oil to be transported shareholders and the countries well, which is also the result of this year in all. The increase in the where our sites are located. the responsible approach to work oil transportation volumes will Our priorities include the safe on the part of our managers and favorably affect the Consortium operation of the pipeline system, specialists. fi nancials and, consequently, will reliable transportation of oil help increase the funding of both from Western Kazakhstan to In the Central Region, serious operational expenses and the Novorossiysk and its scheduled organization work has been Expansion Project. loading into tankers. performed by Viktor Abmayev, and now he is General Manager, I’m certain that such dynamic These functions are reliably per- Operations at CPC, where he is development could not have been formed by the experienced team proving just as successful. Vladi- possible at the Marine Terminal led by mir Groshev, also an experienced Alexander Krichun. He receives specialist, is now working as the without the professional valuable assistance from Igor Flor- Central Region manager. The Con- and responsible work of the ovskiy (Deputy Regional Manager, sortium’s leadership is grateful whole team, from Tengiz to Marine Operations) and Yury Belov to the personnel of this section Novorossiysk, and, of course (Deputy Regional Manager, Shore for their good work, without any IN THE FIRST PERSON fl aws or violations, and their effec- his time and effort, and Vyacheslav all construction and installation tive fulfi llment of both operation- Sergeyev who has worked in the work by December 2015. al and Expansion Project tasks. territory of Kazakhstan for more than a year now. He receives The results achieved in 2014 The Eastern Region’s team too active support from our Kazakh allow us to look to the future with showed good performance. This partners -- Timur Rakhanov and optimism. Of course, we will not year was quite diffi cult for that region: crude shipments were In our routine work performed under the “2+0” we try hard to achieve maximum effi ciency scheme, i.e. without reserve, in the interests of both the shareholders and the countries which required particular atten- tion from the personnel. I take where our sites are located pleasure to note that the team led by Sarsembay Murinov made the grade. Therefore, CPC First Deputy Talgat Ukasov. It is to a large extent stop at what we have achieved. General Director, Operations, Den- thanks to the joint efforts of this I would like to wish the whole nis J. Fahy deserves to be proud of very team that schedule slippage team a happy New Year and his strong and highly professional was overcome in Kazakhstan and holidays, team. work was expedited at phase 1 of PS Tengiz and Atyrau. I hope in good health, well-being of their And we must thank the specialists the next year all construction and families and achievement of all from the Expansion Project Group installation work will completed at plans! led by Mr. Simpson for their work these facilities. In general, the pace this year. First of all, I would like to picked up by the Expansion Project Nikolay Brunich, note Igor Lisin who put in a lot of allows us to expect completion of CPC General Director Joint eff ort to resolve all issues is the key to success. At one of the meetings held in Kazakhstan, 2014 www.cpc.ru Panorama CPC December 2014 1 IN THE FIRST PERSON Nikolay Tokarev: “Transneft highly appreciates the established partner relations” AT THE REQUEST OF “CPC PANORAMA”, NIKOLAY TOKAREV, THE HEAD OF TRANSNEFT, SPOKE TO US. HE SUMMED UP THE RESULTS OF THIS PAST YEAR, AS WELL AS THE GOALS SET FOR THE FUTURE. THE REPRESENTATIVE OF THE CONSORTIUM’S LARGEST SHAREHOLDER, RUSSIA, NOTED THE HIGH POTENTIAL OF COOPERATION BETWEEN ALL PARTICIPANTS OF THE INTERNATIONAL PROJECT. – Mr Tokarev, this year marked In October, we completed Transneft’s active development welding work on one-half of and expansion of its through- the pipeline’s mainline. The put capacity of major pipelines, bulk of the pipeline construc- as well as large-scale pipeline tion and installation work is construction in different regions scheduled to be completed in of the country. How would you the second quarter of 2015. appraise the results of 2014 for your company? Would you The Zapolyarye-Purpe oil name any CPC accomplishments pipeline is almost ready to be among the major results of this filled with oil: the first stage year? of work there is 100% finished. This pipe will transport oil – 2014 marked the beginning of from the new fields in the a sweeping infrastructure mod- Yamal-Nenets Autonomous ernization for Transneft. It is not District and northern part of limited to replacing old pipes, the Krasnoyarsk Region to N.P. Tokarev – head of the world’s which have been in use for more both the domestic and export largest pipeline company than a decade, but will also in- markets. clude the development of our port infrastructures, upgrading of our I would like to note that, despite a nese agreements on increasing tank farms, etc... We have updat- number of obvious difficulties un- Russian oil supplies to China. It ed and began to implement the related to our work, Transneft has will also create the opportunity for “Sever” (North) and “Yug” (South) fulfilled and is fulfilling all work connecting oil refineries located in oil product pipeline projects using within the scope of the Zapol- the Far East to ESPO. segments of our existing pipeline yarye-Purpe project on schedule. system. We are determined to launch the According to the original plans, pipeline strictly on schedule – in ESPO capacity expansion (up to Large scale construction contin- 2016. Simultaneously, work is in annual 80 mln tonnes) was sched- ued in the eastern areas of our full swing for ESPO Stage 2 Expan- uled to be completed by 2030, but country. A considerable part of the sion. An important landmark was the government approved our Kuyumba-Taishet oil pipeline has achieved in October when three investment program, by which the been welded together. The pipe- pump stations (PS 11, 15 and 19) project was to be finalized 10 years line will be 695.2 km long and will were put into operation in Yaku- in advance – by 2020. Transneft, connect the Krasnoyarsk Region tia. ESPO capacity expansion is, for its part, will take all necessary fields with the East Siberia-Pacific among other objectives, targeted measures for the work to be com- Ocean (ESPO) pipeline system. at implementing the Russian-Chi- pleted on schedule. It is important 2 Panorama CPC December 2014 www.cpc.ru IN THE FIRST PERSON that the oilmen do not let us down tion from PS Kirishi to the port of maintenance and upgrade of the because as things stand today it Primorsk. The pipeline’s capacity Novorossiysk port oil terminal is obvious that development of expansion was achieved by means infrastructure is an important the East Siberian fields is running of reallocation of one of our crude aspect of our company’s activities behind the pipeline construction. oil pipelines for oil product trans- since it helps increase Russia’s port.