Wednesday, 25 May 2005

GIANT CASPIAN OIL PIPELINE OPENS

Published in News Digest

By empty (5/25/2005 issue of the CACI Analyst)

Oil is set to flow from the Caspian Sea direct to the Mediterranean for the first time after a $3.6bn (£2bn) pipeline opened on Wednesday. Starting in Azerbaijan, the 1,600km (1,000 mile) pipeline will pass through Georgia to the Turkish port of Ceyhan.
Oil is set to flow from the Caspian Sea direct to the Mediterranean for the first time after a $3.6bn (£2bn) pipeline opened on Wednesday. Starting in Azerbaijan, the 1,600km (1,000 mile) pipeline will pass through Georgia to the Turkish port of Ceyhan. The project has taken more than 10 years to finish and will unlock one of the world\'s biggest energy reserves. It has not been without controversy, however, and there have been protests about the impact on the environment. Wednesday\'s inauguration at the Sangachal oil terminal near Baku was attended by presidents from Azerbaijan, Kazakhstan, Georgia and Turkey. US Energy Secretary Samuel Bodman also was present at a ceremony where the taps were turned on. The pipeline has been an international effort and was built by a consortium led by UK oil giant BP, which has a 30% stake. Other consortium members include Azerbaijan\'s state oil company Socar, Amerada Hess, ConocoPhillips, Eni, Inpex, Itochu, Statoil, Total, TPAO and Unocal. David Woodward, the head of BP\'s operations in Azerbaijan, said that the opening marked the former Soviet state\'s \"rebirth as an important country for the oil industry, just as it was more than a century ago\". Azerbaijan\'s President Ilham Aliev said that \"this pipeline first of all will help solve economic and social problems\" but also will play a role in \"strengthening peace and security in the region\". The oil in the pipeline will initially come entirely from Azerbaijani fields, but Kazakhstan is expected to participate in the project before the end of the decade. (BBC)
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