Introduction
Caspian pipeline is a group of people who have come into an agreement and pipeline that ships Caspian oil to Novorossiysk, which is the Marine lethal, which is found the Black Sea of Russia coast from Tengiz grounds. Additionally, it is utilized as the chief oil way for exportation from two Fields. It makes the sole pipeline for oil exportation in Russia despite the fact that it is not fully possessed by the Transneft as at the year 2009.
The Caspian Pipeline Consortium was initiated in the year 1992, and Eni has been part of it since its commencement. It was perceived as a pillar for development by Kazakhstan, Omani and Russian government for oil export around Black Sea. In the same year negotiations for the Karachaganak field also kicked off which would attribute to the facilitation of the Caspian, oil transportation with ease. Corporation of Chevron which was requested to join this project.
However, financial inadequacy was the big elephant, and this made the project more complex with this Corporation incorporated. The project progress came to a halt until around 1996 when around production companies that were eight in number were recuperated. Some of these thriving companies included Chevron, Rosneft, LUKoil as well as Royal Dutch Shell. In the year 2003, share was equally distributed among the 3 states and the 8 funding companies. The production companies made a contribution of 2.67b dollars towards the project of the Caspian Pipeline Consortium. The Russian state government, on the other hand, provided unutilized pipeline resources valuing 293m dollars
In 2001, the initial tanker was filled with oil at Novorossiysk maritime fatal and the regular operation kicked off on 2003 April. The government of Russia handed over their shares to Transneft, which was a that was owned by Russia in 2007. Government of as well traded stake and in 2008 it came out of project at the same year when an expansion memorandum was passed. In 2013, Eni asserted that the production had commenced at the gigantic Kashagan oil fields. Phase one of the developments of the Caspian Pipeline Consortium is attributed to Eni. The chief objective of the phase one of the projects is to meet the production volume of one hundred and eighty thousand of oil barrels per day in 2014 and the additional of compression capacity for the re-injection of natural gases.
Characteristics
The pipelines are 1510 kilometers long and have a diameter ranging between 1016 millimeters and 1067 millimeters. It should also constitute of five pumping stations. The storage tanks should be made of steel and 100,000 cubic meters. The tanks should precisely be four in number. Marine terminals consist of two single point moorings. The Caspian Pipeline Consortium is the chief international crude oil shipping project that involves the Kazakhstan, Russia and the prosperous gas and oil organizations, for example, Shell, Chevron, British Gas, Eni, lukoil and Exxon Mobil. Its main source of oil is fertile fields of Western Kazakhstan and the Russian oil producers.
In the year 2012, Eni held 102 thousand barrels of oil as their share of the hydrocarbons produced overall. Eni is greatly committed to the environmental conservation towards the Caspian Pipeline Consortium project. This is observed through their desire to reduce the cost required in the formulation of the project while emphasizing on the impact of drilling in the environment. It can as well be depicted that Eni is environmental conservative through installation of a casing consisting of special and unique steel that inhibits corrosive conditions attributed to reservoir fluids. CPC pipeline system has a Quality bank, which equips the seers of the system with a full amount of their crude oils. It utilizes the modern and sophisticated technology for its efficiency and effectiveness, and it operates internationally.
Future prospects
Future prospects Caspian Pipeline Consortium project is looking forward to elevating its initial services capacity to an estimation of 2.5 times. This will be attained through the approval of $5.4 billion project to improve the pump stations as well as increase their number to ten. Additionally, enhancement of terminal facilities will be of much assistance towards their objective achievement. The Caspian Pipeline Consortium project is also expected to improve the economic standards of the services, as well as that of the involved countries. The annual revenue is expected to rise to more than double amounting to $2.3. It is hoped to expand its services to more places in the world bearing in mind that it's the most economical and suitable mode of transport for crude oil from Caspian and Black Sea to the diverse global markets. The viability of the CPC pipeline system is attributed to the increased oil production thus expected to broaden in the future and last long.
Furthermore, its expansion project provides assurance to Caspian areas of reliable transportation, which is compatible with their plans; thus, it will significantly contribute to the growth and flourishing of these regions in the future. It is perceived to have a positive contribution to the community through provision of employment thus increased income leading to improved living standards of the people. Due to its international operations its expected to earn the regions foreign exchange as well respect the neighbors by not polluting the environment thus maintaining peace, as well as development. It is also foreseen to become independent and prosperous in the future. This will contribute to infrastructural development and boost the economy.
Works Cited
Rosner, Kevin. Kazakhstan's Energy Cooperation with Russia. Blue Ibex, 2006. Internet resource.
Taylor, Paul M, Christopher R. Polglase, Näsäf Müseyibli, Jared M. Koller, and Troy A. Johnson. Agt--ancient Heritage in the Btc-Scp Pipelines Corridor: Azerbaijan, Georgia, Turkey. Washington, D.C: Smithsonian Institution, 2010.
