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CPC Repaid About $ 327 Million of Debt to Shareholders in Q2

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The Caspian Pipeline Consortium (CPC) in the second quarter of 2020 sent about $ 327 million to repay debt to shareholders.

In the quarterly report of Transneft, which is one of the consortium’s shareholders, it is reported that in the second quarter CPC paid $ 46.7 million to the Russian Federation, as well as $ 23.5 million to the CPC Investments Company. Thus, the total payments during this period could have amounted to $ 327 million, Interfax believes.

As reported, at the beginning of 2019, the balance of CPC’s debt to shareholders was slightly less than $ 2 billion. By the end of 2019, CPC paid out more than $ 1.4 billion. 

The head of the company, Nikolai Gorban, announced that the consortium intends to pay off the debt to shareholders by the end of 2020 and after that start paying dividends.

The consortium’s debt burden is distributed between the legal entities KTK-K (Kazakhstan) and KTK-R (Russia). It was formed as a result of the conclusion in 1997 of loan agreements between government shareholders and mining companies as creditors and KTK-R CJSC and KTK-K JSC as borrowers.
CPC shareholders are Russia – 31% (Transneft – 24% and CPC Company – 7%), Kazakhstan – 20.75% (KazMunayGas – 19% and Kazakhstan Pipeline Ventures LLC – 1.75%), Chevron Caspian Pipeline Consortium Company – 15%, Lukarco BV – 12.5%, CPC Mobil – 7.5%, Rosneft-Shell Caspian Ventures Limited – 7.5%, BG Overseas Holding Limited – 2% and Oryx Caspian Pipeline LLC – 1.75%. 

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