The Baku-Tbilisi-Ceyhan pipeline (sometimes abbreviated as BTCpipeline) transports crude oil 1,760 km (1,094 miles) from the Azeri-Chirag-Guneshli oil field in the Caspian Sea to the Mediterranean Sea.
The construction of the BTCpipeline was one of the biggest engineering projects of the decade, and certainly one of the biggest to have occurred anywhere in western Asia since the fall of the Soviet Union.
The pipeline was officially opened on May 25, 2005 in the presence of President Nursultan Nazarbayev of Kazakhstan, President Ilham Aliyev of Azerbaijan, President Mikhail Saakashvili of Georgia, and President Ahmet Necdet Sezer of Turkey, as well as United States Secretary of Energy Samuel Bodman.
The BTCpipeline was developed by an international consortium of 11 partners led by BP as operator with a 30.1% share, the state oil company of Azerbaijan (SOCAR) with a 25% share along with Unocal (8.9%), Statoil 8.71%, TPAO (6.53%), ENI (5%), TotalFinaElf (5%), Itochu (3.4%), INPEX (2.5%), ConocoPhillips (2.5%), and Amerada Hess (2.36%).
The pipeline is expected to be in operation during the fourth quarter of 2005.
The presence of the president of Kazakhstan at the inauguration sparked rumors that the BTCpipeline may eventually be expanded in capacity to 1.6 - 1.8 million bpd to accommodate Kazakh crude.
11.1 BTC Section - BTC Section - Pipeline Construction Begins Beginning the Journey Westward(Site not responding. Last check: 2007-09-10)
Over the course of the 40-year design life of the BTCpipeline, this number will add up to around 30,000 transits, depending on the volume of oil actually moved by the pipeline and the application of regulations governing the size of vessels and number of shipping movements permitted through the Straits.
Pipelines emerge from the ground at pumping stations, where access is provided for devices which travel through the line for maintenance and inspection.
The pipeline is to be constructed along the same route as the BTCoilpipeline in order to minimise the environmental and social impact of the two projects and to achieve capital and operational cost-savings.
The pipeline was officially inaugurated at the Sangachal terminal, near Baku, by President Ilham Aliyev of the Azerbaijan Republic, President Mikhail Saakashvilli of Georgia and President Ahmet Sezer of Turkey, joined by President Nursaltan Nazarbayev of Kazakhstan on 25 May 2005.
The pipeline is protected against corrosion for its entire length and since security is such a big issue it will be subject to constant safety surveillance, patrols and closed circuit TV observation (in case of terrorist incursion).
The pipeline crosses the land of 20,000 individuals and companies who have been compensated with a share of over $133 million for the acquisition of rights to the small portion of their land where the pipeline runs.
The future of the BTCoil and Baku-Tbilisi-Erzerum gas pipeline projects in Georgia, as well as the separatist conflict South Ossetia, were the main topics of a two-hour, closed-door meeting between Georgian President Mikheil Saakashvili and U.S. Assistant Secretary of State Elizabeth Jones on July 30.
After the meeting, Jones underlined the strategic importance of the BTCpipeline for the United States and stated that Saakashvili had promised that construction of the pipeline would continue and that its route would not be changed.
BTC, touted as the hallmark of Georgia's pro-Western orientation, was suspended for the first time shortly before Saakashvili's visit to the United States and coincided with increased tensions in the conflict zone.
The long-delayed 1000-mile Baku-Tbilisi-Ceyhan (BTC) pipeline to transport 1 million barrels of oil a day from the Caspian to the Turkish port of Ceyhan is progressing toward completion as early as 2005.
The goal of the six-day maneuvers was to strengthen coordination and cooperation among the land forces of the three nations in preparation for defending the BTC from a terror attack.
If BTC were to succeed this would be mainly due to active diplomacy to resolve the lingering conflicts in the region and address the grievances of those who want to see this significant project failing.
Crude oil that is to traverse the 1760 km Baku-Tbilisi-Ceyhan (BTC) pipeline will be extracted from the Caspian Sea's vast Azeri-Chirag-Gunashli (ACG) oil fields, which are estimated to hold over 5 billion barrels of recoverable oil.
Phase 1 of the $3.6 billion pipeline project will see 188 kilometers of undersea pipe laid at depths up to 180 meters deep to transport the extracted oil from an offshore drilling platform to an expanded Sangachal terminal near Baku.
By 2010 the BTCpipeline is expected reach a peak volume of 1 million barrels per day.
BTC Co. and IFC staff’s decision not to apply the policy leaves ethnic minority groups unnecessarily and unjustifiably vulnerable to socio-political difficulties connected to the BTC project.
For the Board to approve the BTC project without first ensuring that the violations of Bank policy have been addressed would be to signal that the Bank was either unwilling or unable to remedy the policy failures identified by the CAO.
By acquiescing to BTC Co.’s rush to complete the project before the necessary revisions are made to ensure that all stakeholders benefit from the project, the IFC loses rather than increases its capacity to improve project standards.
BTC is not merely a pipeline: it is a sovereign state.
This BTC state slices Azerbaijan in half from east to west, then slices Georgia in half almost from east to west, before taking a dip south, bypassing secessionist Ajaria and slicing Turkish Anatolia diagonally from the northeast toward the south.
The pipeline itself is only 126 centimeters wide, a dizzying steel serpent of no less than 150,000 segments made in Japan, finished in Malaysia and delivered by ship to the Georgian port of Batumi, capital of the separatist micro-republic of Adjaria - which is virtually uncontrolled by Tbilisi.
village voice > news > Path of a Pipeline by Raffi Khatchadourian(Site not responding. Last check: 2007-09-10)
But in two years' time, the terminal is slated to become the westernmost extreme of the BTCpipeline, a transnational, 1094-mile conduit capable of delivering upward of 350 million barrels a year from the Caspian Sea.
World powers have contrived to shape the pipeline according to their needs; impoverished countries locked in bitter wars have sought to gain from the prosperity it seems to promise.
BTC is treading gingerly, not least because 70 percent of the financing for the pipeline is expected to come from export credit agencies and international finance institutions (such as the European Bank for Reconstruction and Development, and the International Finance Corporation, a member of the World Bank Group).
Moscow did not support the idea of the pipeline but did not interfere with it either, though it had said that it would not provide oil to it.
It will be more profitable than the BTC: its length is slightly more than 186.4 miles (1,098 miles in the case of the BTC), its throughput capacity is between 35 million tons and 50 million tons (50 million for BTC) and it will cost about $700 million (some $4 billion for BTC).
Though there is not enough oil for the pipe so far, the aggregate capital of companies in the BTC consortium is $1 trillion, which makes the pipe an instrument of powerful political influence in the region.
The critical BTC pipeline - Editorials/Op-Ed - The Washington Times, America's Newspaper(Site not responding. Last check: 2007-09-10)
The new pipeline is the linchpin of this policy because it carries crude oil directly from the offshore oil fields of Azerbaijan to the Mediterranean via Tbilisi, the capital of Georgia.
Furthermore, the personal commitment to the pipeline by Sir John Browne, chairman of BP, was also instrumental in giving confidence to the international financial community to finance the $3.4 billion project.
BTC must be seen as a project of geo-strategic significance: linking three allies of the United States along an East-West energy corridor, loosening Russia's long-standing grip over oil exports from the Caspian and denying the Islamic regime of Iran transit revenues.
11.1 BP Current Developments - First Pipe for BTC Pipeline Arrives in Baku(Site not responding. Last check: 2007-09-10)
BTC Director Mike Townshend talks to the press at the Umbaki pipe yard during the first BTC pipe arrival in Baku.
The BTC project remains on schedule to be completed in time for First Oil from the Azeri Development Project of the Azeri-Chirag-Gunashli oil field, which is planned for early 2005.
The SCP is a 42-inch, 690-km pipeline (442 km in Azerbaijan and 248 km in Georgia) to be constructed jointly with, and in the same corridor as, the BTCoil export pipeline in order to minimize the environmental and social impact and to save on capital and operating costs.
The BTCpipeline is a dedicated crude oilpipeline system, which will extend from the ACG field through Azerbaijan and Georgia to a terminal at Ceyhan on the Mediterranean coast of Turkey.
The pipeline can transport up to 1 million barrels per day, and at 1760 kilometers is one of the longest of its kind in the world.
The BTCpipeline will complement oil transport from two existing pipelines—the Northern Route pipeline to Novorossiyk, Russia, and the Western Route pipeline which ends in Supsa, Georgia—whose transportation capacity is limited.
www.ifc.org /btc (280 words)
Caucasus: Is The BTC Oil Pipeline Saving Europe From Russia Or From OPEC? - RADIO FREE EUROPE / RADIO LIBERTY(Site not responding. Last check: 2007-09-10)
BTC, it was hoped, could save the continent from the potential threat of a Moscow energy monopoly.
Pipeline security was also in the thoughts of Mikhail Margelov, the chairman of the Russian Federation Council's International Affairs Committee.
The fate of the BTCpipeline will be determined to some degree by Kazakhstan's willingness, or need, to allocate more oil for delivery into the pipeline.
In Azerbaijan the pipeline crosses 21 major rivers, impacts a sensitive desert ecosystem that will take at least ten years to be fully restored, and traverses unstable land with high seismic activity.
The pipeline traverses a variety of ecosystems, from desert landscapes in Azerbaijan to alpine zones in Georgia and Turkey.
The pipeline crosses catchment areas of some mineral water springs, and in the opinion of international business consultants, the mere presence of the pipeline will erode the value of the business.
ga1.org /campaign/stopbtc/explanation (438 words)
Baku Ceyhan Campaign(Site not responding. Last check: 2007-09-10)
BP (along with other oil companies) is currently building a new pipeline system that was due to be completed in the latter half of 2005 but is now scheduled for mid-2006.
The BakuCeyhan campaign is actively monitoring the project both to support communities affected by the pipeline and to hold to account the institutions which are financing the project.
BTC has been built by many actors and institutions - a consortium of oil companies supporting project operator BP, outsourcing particular tasks to contractors and financed by various public and private financial institutions.
Baku-Tbilisi-Ceyhan Pipeline Company (BTC Company) unveiled projects that will be implemented as part of the second phase of Community Investment Program aiming to support sustainable development along BTCpipeline.
Building on the successes of BTC Community Investment Programme’s first phase projects implemented in Ardahan, Kars, Erzurum, Erzincan and Gümüşhane provinces, BTC Company is now starting the second phase of the program of sustainable rural development activities in central and southern parts of the pipeline.
Progress in overall BTC Crude OilPipeline Project is 88% for Turkey as of 17 October 2004.
It must be remembered that the BTCpipeline is just one part of wider offshore oil and gas field development in the region, which includes associated upstream and downstream terminals.
The AGT pipelines also futher endanger a number of endangered plant and animal species protected by the national laws of the south caucasus countries, and call for cutting through several primary forests in the surrounding Georgian mountains.
The project sponsor and the donors funding the pipeline construction should consider all the social, developmental, human rights, environmental and security impacts of regional oil and gas development in general, and of the BTCpipeline in particular.
The pipeline will be the primary export route for oil produced in the Caspian region delivering hydro-carbons to the Mediterranean while avoiding the environmentally sensitive Turkish Straits.
Tanker tariff in the Bosphorus is nearing its maximum capacity and because of the highly sensitive nature of the waterways, the Turkish government is reluctant to increase the environmentally-hazardous oil tanker traffic.
The BTCPipeline is primarily constructed to provide an outlet for the oil produced during the full field development of the offshore Azeri Chirag and deepwater Gunashli fields in Azerbaijan (please see separate PSD) as well as to provide an alternative export route for other oil fields in the Caspian Sea region.
Georgian Environment Minister Tamar Lebanidze was reported as saying that she would not have approved the route through Borjomi selected by BP in November 2002, because of the risk of catastrophic environmental damage in the event of pipeline rupture.
Last month, whistleblowers on the Turkish section of the pipeline revealed a catalogue of management failures that were allegedly causing major health and safety problems.
The U.S.-backed and BP-led strategic BTCpipeline envisions the transport of Azeri oil to the Turkish Mediterranean port of Ceyhan via Georgia.
BP Global - Press - Start of BTC linefill(Site not responding. Last check: 2007-09-10)
The staged filling of the pipeline along its entire route could take over six months and the loading of the first tanker at Ceyhan is expected in the fourth quarter of 2005.
The BTC Co. shareholders are: BP (30.1%); SOCAR (25.00%); Unocal (8.90%); Statoil (8.71%); TPAO (6.53%); Eni (5.00%); Total (5.00%), Itochu (3.40%); INPEX (2.50%), ConocoPhillips (2.50%) and Amerada Hess (2.36%).
The 1770km BTCpipeline will allow one million barrels of oil a day to be exported safely and responsibly from the Caspian without increasing tanker traffic through the Turkish Straits.
The BTCs significance was underscored by the presence at the opening of US Energy Secretary Samuel Bodman, who read out a letter from US President Bush, along with the presidents of the three countries involved and also of the Central Asian republic of Kazakhstan.
The BTC is a convenient lever for the US to extend its political influence and to buttress its military presence in Central Asia to the detriment of its rivalsparticularly Russia and China.
Unable to fully utilise the BTCs capacity simply from oilfields in Azerbaijan, the BP consortium, with the backing of Washington, is compelled to seek oil from Kazakhstan and other Central Asian sources, intensifying competition and potentially leading to political and military conflict.
Bank Information Center USA : Baku-Tbilisi-Ceyhan (BTC) Pipeline Project, Azerbaijan/Georgia/Turkey(Site not responding. Last check: 2007-09-10)
The Baku-Tbilisi-Ceyhan (BTC) OilPipeline is planned to transport up to one million barrels of oil per day a distance of 1,760 km from an expanded terminal at Sangachal on the Caspian Sea in Azerbaijan, through Georgia to the Mediterranean port city of Ceyhan, Turkey.
The BTCpipeline is being developed and will be operated by an international consortium of 11 partners, led by BP, known as the Baku-Tbilisi-Ceyhan Pipeline Company (BTC Co).
BTC Co is seeking public financing from the International Finance Corporation (IFC), the EBRD, and a number of Export Credit Agencies.