$850 million plus system of crude oil pipelines in Eastern Europe.

At a board meeting in Bermuda on Friday, it was announced that the northern route had been selected, which will run from Tengiz, in Kazakhstan, and Baku, in Azerbaijan, to the Black Sea port of Novorossysk.

It was one of eight possible routes under consideration.

The pipeline will provide access to international markets for oil produced in Kazakhstan and Azerbaijan.

The announcement was made by the representatives of the consortium -- the Sultanate of Oman and the Republics of Kazakhstan, Russia and Azerbaijan.

Among those who attended CPC's board meeting, held at Elbow Beach Hotel, were Mr. Victor Ott, Deputy Minister for Oil of the Government of the Russian Federation; His Excellency Kadyr Baikenov, Deputy Prime Minister of the Republic of Kazakhstan; His Excellency Said Bin Ahmed Al Shanfari, Minister of Petroleum and Minerals of the Government of the Sultanate of Oman; and Beermuda Premier the Hon. Sir John Swan.

CPC's board also appointed the Project Development Consortium (PDC), whose members are Bermuda-based OOC Ltd., Overseas Bechtel Incorporated, and Willbros (Overseas) Ltd., to carry out the development and implementation of the overall pipeline project.

PDC's responsibility will be to design and build a pipeline system capable of transporting 75 million tons per year (1.5 million barrels per day) of crude oil from western Kazakhstan and the producing areas of Azerbaijan to Novorossysk.

As a first step towards early operation of the system, the pipeline under construction between Tengiz and Grozny will be completed by the Russian construction firm Stroineft by April, 1993.

The Tengiz-Grozny section is approximately 800 miles long and will consist of 40-inch diameter pipe. It will include pump stations that require only limited work to complete.

The segment of the new pipeline required to reach Novorossysk from the Grozny area is another 500 miles and will require 42-inch diameter pipe.

This segment will parallel an existing line, resulting in capital cost savings through the use of existing rights-of-way and facilities.

The estimated cost of the new construction and upgrading of existing systems is $850 million, not including the cost associated with the revamping of the existing pipeline from Baku to Grozny.