CONSTRUCTION OF BAKU-TBILISI-CEYHAN: IS ABOUT TO COME
GEORGIA SANCTIONED REALIZATION OF ITS SECTOR OF THE BTC PROJECT
Practical realization of the program of construction of Baku-Tbilisi-Ceyhan oil pipeline will begin in coming several days, said the president of Azerbaijan Heydar Aliyev.
During the receipt of the Kazakhstan’s ambassador Andar Shukurov in Baku, the president of Azerbaijan noted that problems related with approval of Environmental Impact Assessment of Baku-Tbilisi-Ceyhan were eliminted. “The main problem is solved now and construction will soon begin”, he said. The president Aliyev also held debate concerned with realization of BTC project. On the debate took part the prime-minister of Azerbaijan Artur Rasizadeh, the minister of foreign affairs Vilayat Guliyev, the president of SOCAR Ilham Aliyev, the first vice-president of the State Oil Company of Azerbaijan Republic (SOCAR) Ilham Aliyev and other officials.
According to the press-agency of the president of Azerbaijan, the president of BP-Azerbaijan David Woodward in his speech revealed some details of the work carried by the government of Georgia related with signing of the document “Environmental Impact Assessment of the Baku-Tbilisi-Ceyhan project”.
BTC’ safety - stability guarantor in the region
Partners in the project on construction of the MEP Baku-Tbilisi-Ceyhan oil pipeline projected to run near to several local centers of tensity in the Caucasus region - zones of Azerbaijani-Armenian and Chechen conflicts and centers of separatism in Abkhasia and South Osetia, say that providing of security to the “pipe” is one of most important tasks of construction. During the recent Georgia trip the US special ambassador for Caspian energy diplomacy Steven Mann said the future oil pipeline was under no serious threat and its safety would be solved at highest level.
“We very seriously regard security problems, but think that no any extraordinary threat to the pipeline exists now”, said S. Mann. His confidence is supported by the US-sponsored program realized in Georgia. The program goals to train Georgian Special Forces to provide safety to energy trunks, first of all to the Baku-Ceyhan oil pipeline.
“Guard of the future oil pipeline, particularly on the territory of Georgia, will base on Americans experience presently shared by their specialists”, Reuters agency quoted the president of the International Oil Corporation of Georgia Gia Chanturia. The USA granted $64 million to realization of “Training and equipping” program, which began in May of the current year and will last one and half year. Military training is directed by 150 instructors. BP officials say that the future oil pipeline will be designed from a superstrong steel with several protecting coatings to avoid oil escape. In addition, on the Borjomi Gorge the pipeline will be equipped with additional pipe valves, modern caution sensors. The pipe is also designed to withstand earthquake of 12 forces of Richter scale. Environmental and security experts will supervise on this sector of the pipeline around a year. “Risk of this project is about at zero only if the pipeline is properly operated, of which we are absolutely sure”, said Chanturia in the interview granted to Reuters agency.
Despite all these assurances and even the document signed in Tbilisi on the night of December 2 that permits installation of MEP sector across Borjomi Gorge, several parliamentarian fractions of Georgia addressed protest against running of the pipeline Baku-Tbilisi-Ceyhan along the above stated rout. “Democrats”, “The new Right”, “National movement”, “New Abkhazia” and “Industrialists” fractions expressed exasperation by the rout of the pipeline which is to run via Borjomi Gorge and stated that neither the president nor the minister on environmental protection had a right to take decisions harmful to Georgia’s nation, reported Caspian.Ru. Generally, the fraction supports the realization of the project of the oil pipeline, but they deprecate the rout.
“The project of the oil pipeline is of vital important for Georgia. If we do not support the rout of Baku-Tbilisi-Ceyhan oil pipeline this does not mean that we are against of realization of the project. The parliament did everything possible to bring the project from paper to life”, George Baramidze said on behalf of the fraction.
How the ecology document was signed
The above named fractions held a session where were invited officials of the Georgian International Oil Corporation, BP and Environmental protection ministry of Georgia. Parliamentarians strongly claim for response on the question: who pressed on the minister of environmental protection Nino Ckhobadze and made her change her own decision. Despite the president of Turkey Ahmed Nejdet Sezer, the president of Azerbaijan H. Aliyev, high ranked officials of American Administration and officials of BP - the project operator, were ringing E. Shevardnadze during the Sunday, it was difficult to try to prevail upon N. Chkhobadze. Mrs. Chkhobadze, one of founders of “The Greens” party of Georgia, fought to the bitter end and was prepared even to resign. This could bring to catastrophic consequences, as assigning of a new minister and a new examination of the project would frustrate all schedules. It should be noted that BP has already allotted about $500 million to the project, and very because of this, irritability of these companies’ heads and their lobbists in western countries, which bombarded Tbilisi with claims to vise the document to provide ecology security to the project, is understandable.
At long last, late at night on Sunday the president Shevardnadze personally interfered into the process of negotiations. He invited D. Woodward, N. Chkhobadze, the president of Georgian International oil Corporation G. Chanturia, representatives of the World Bank, who also took part in negotiations, and officials of BP to his office. Violent debates in the office of the president have lasted till four o’clock on Monday morning. At last, D. Woodward agreed that his company would provide unprecedented security measures on the Borgomi area. He took in view thickening of the pipe wall, continuous monitoring on the Borjomi Gorge, creation of mechanism of shut up of the pipeline in several minutes from the moment of start of oil escape and etc. All these measures will cost BP about $25-30 million. But nevertheless, Nino Chkhobadze was steadfast. At that, according to a participant of the session who does not want to be spelled out, E. Shevardnadze resorted to a last measure. He told Chkhobadze that respected her determination to protect Georgia’s nature, but the project was of vital importance for Georgia. “I ask you not as a president, but as a human being and as a father”, said Mr. Shevardnadze. After these words N. Chkhobadze broke and vised the project. But according to reporters vigilant all night long near the state chancellory, the minister left the building dead pail and tearful. On Monday morning E. Shevardnadze said in an interview to national radio that ecology prevention measures undertaken for Borjomi Gorge would eliminate all anxieties. Shevardnadze said that Georgian party had made no step to put safety of Borjomi Gorge under the question, and as the president of the country he undertaken whole responsibility for functioning of the future oil pipeline that promises Georgia great dividends. “A can openly say that is fully responsible for this project on the territory of Georgia”, said Shevardnadze. The president added that agreements signed in past envisaged Georgia’s right to terminate the project in case of any threat to environment during its realization. Shevardnadze noted that the first pipe party for the oil pipeline would be delivered to Black Sea Poti port of Georgia over 20-25 days. Pipe laying on the territories of Azerbaijan and Georgia of the project estimated at $2,95 billion is to begin in the first quarter of 2003 to accomplish in late 2004. The first Azerbaijani oil is expected to run by this pipeline of ultimate annual throughput 50 million tones of oil in the beginning of 2005. Pipeline length on the territory of Georgia is to be 248 km, total length of the rout - over 1,750 km.
Support to BTC
The fact that Kazakhstan attempts first negotiations to discharge its oil into the Baku-Ceyhan oil pipeline that is now under construction plays in BTC’s favor. The first round of negotiations began on December 6 in London in the embassy of the USA. Officials of the US administration will be negotiator between Baku-Ceyhan consortium to be represented by governmental officials of Azerbaijan and Kazakhstan, the latter’s interests will be represented by the energy ministry of the country and directorate of four western oil majors. According to the US State Department, the negotiations aim at getting a written consent from Kazakhstan to move annually 20 million tones of oil through Baku-Ceyhan pipe, reported CenterAN.
Measures undertaken by Turkey’s government in October to restrict navigation in Bosporus resulted in growth of transport expenses on oil transportation.
Restrictions concern ships of over 200 meters length loaded with ecologically dangerous cargo. They are allowed to pass through the strait only in summer time. According to agencies, many tankers are induced to wait for turns for five or more days to pass through the strait.
Platts agency reported that freight charges on oil transportation from Black Sea basin had grown 10 points.
Competition
Meanwile, the closer is the day of commissioning of BTC, the more intencive are Turkey’s activities in realization of its plans aimed at provifing an alternative source of oil supplies. This is also helped by the international climate related with American-Iraqi counteractions. Probably, having taken into account that in the recent future Iraqi oil under the pressure of the USA will rush to the market, Turkish Tekfen completes works related with modernization of the pipeline designed to move Iraqi oil to Mediterranean terminal Ceyhan.
Modernization will end in the first half of 2003 when the throughput of the oil pipeline is to make 1,6 million barrels a day against current 1,18 million.