CPC-R Board of Directors meeting and CPC-K Extraordinary General Shareholders’ meeting were held today in Moscow.

The Consortium Shareholders have discussed the current Expansion status and adopted resolutions necessary for implementation of the first Expansion stage. In particular, they approved execution of agreements with 11 earlier selected contractors to perform construction work at principal Brownfield and Greenfield Expansion facilities in the Russian Federation. Likewise, 7 principal Expansion construction agreements were approved for the Republic of Kazakhstan. A number of other financial and organizational solutions have been agreed on. The Shareholders’ resolutions launch an active phase of the CPC pipeline system capacity expansion in June 2011.

In addition, the participants have discussed various aspects of Consortium’s ongoing financial and business performance.

The Expansion provides for the CPC pipeline system capacity increase to 67MMTA. The Expansion Project includes rehabilitation of the existing, and construction of 10 additional pump stations (2 in the Republic of Kazakhstan and 8 in the Russian Federation), six crude oil storage tanks near Novorossiysk, as well as third single point mooring at the CPC Marine Terminal and replacement of 88 km of pipelines in Kazakhstan with a larger diameter pipe.

CPC Shareholders: Russian Federation (represented by Transneft – 24% and CPC Company – 7%) – 31%; Republic of Kazakhstan (represented by KazMunaiGaz – 19% and Kazakhstan Pipeline Ventures LLC – 1.75%) – 20.75%; Chevron Caspian Pipeline Consortium Company – 15%; LUKARCO B.V. – 12.5%; Mobil Caspian Pipeline Company – 7.5%; Rosneft-Shell Caspian Ventures Limited – 7.5%; BG Overseas Holding Limited – 2%; Eni International N.A. N.V. – 2%; and Oryx Caspian Pipeline LLC – 1.75%.