[A-List] Caspian Oil Pipeline Only To Feed US Market: Russian Envoy

[Rick Rozoff <r_rozoff@xxxxxxxxx>]

1) Baku-Tbilisi-Ceyhan Caspian Oil Pipeline Will Serve
Only The US Energy Market: Russian Caspian Envoy
2) As 'Transport Corridor Between Asia And Europe,'
Georgia To Get $62 Annually From BTC




http://www.geotimes.ge/gtnews.php?cat1=1#5217


Daily Georgian Times
March 21, 2004


Baku-Tbilisi-Ceyhan oil to flow exclusively to US


(GT News) The Baku-Tbilisi-Ceyhan (BTC) pipeline
project is aimed exclusively for United States,
declared Viktor Kalyuzhny, Russia's special envoy for
Caspian issues and deputy foreign minister, on
Thursday.
"BTC oil will only go to the American market. For
economic reasons the oil will not go to Europe,"
Kalyuzhny said.
Tankers with a tonnage of 300,000 to 500,000 tonnes
will be filled at Ceyhan, the end site of the pipeline
on Turkey's Mediterranean coast, and for these it is
only advantageous to transport oil to the United
States.
------------------------------------------------------
http://www.geotimes.ge/fullview1.php?id=5224&cat1=7

Daily Georgian Times
March 21, 2004


BTC oil pipeline will bring yearly $62 million to
Georgia


?We will use Georgia?s experience in Azerbaijan?, says
BTC CO commercial director
By Maia Misheladze


-The construction of Shah-Deniz-Erzerum pipeline is
scheduled to start shortly after the BTC pipeline
building is complete. Georgia?s participation in the
projects bears critical importance as it serves as a
kind of transport corridor between Asia and Europe.
The pipeline is expected to bring 800 million revenues
annually and Georgia will take $62 million portion
from this amount. The total cost of the BTC pipeline
project is $2.5 billion.




A two-day 3rd Georgian International ?Oil, Gas, Energy
and Infrustructure-2004 Conference? kicked off at
Sheraton Metechi Palace Hotel Thursday. 180 delegates
from 15 countries are participating in the conference.
Development of BTC pipeline and South Caucasian gas
pipeline Shahdeniz-Tbilisi-Erzerum was discussed at
the conference yesterday. Sponsors of the conference
are British Petroleum, Spie-Petrofac, Statoil, Socar,
and other companies. Participants include Ministry of
Fuel and Energy, BP, BTC Co, GIOC, Georgian OIl,
Socar, Botas, Kazmunaigaz, Statoil, Ukrtransnafta,
IFC, EBRD, RAO UES, Gazprom, ChevronTexaco,
Spie-Petrofac, Marsh, Ernst &Young, AON, McConnell
Dowell, USAID and many others.
Prime Minister Zurab Zhvania was expected to open the
conference but the political dispute between Tbilisi
and Batumi has prompted him to stay in a Black Sea
town Poti, near Batumi to head an anti-crisis center.

The construction of Shah-Deniz-Erzerum pipeline is
scheduled to start shortly after the BTC pipeline
building is complete. Georgia?s participation in the
projects bears critical importance as it serves as a
kind of transport corridor between Asia and Europe.

The pipeline is expected to bring 800 million revenues
annually and Georgia will take $62 million portion
from this amount. The total cost of the BTC pipeline
project is $2.5 billion.

At yesterday?s conference Commercial Director of BTC
CO Andrew McAuslan noted that the BTC pipeline energy
corridor covers 700,000 kms territory.

?This is the most large-scale project in which the
confidences of creditors are supported by legislative
frames. The pipeline project was signed by leaders of
the countries and it is of great importance. We are
proud of cooperating with other international
financial institutions, for example, with European
Bank for Reconstruction and Development(EBRD), within
the frames of the project,? Andrew McAuslan said.

The BTC co representative spoke about the importance
of social and public projects implemented within the
frames of the BTC oil pipeline. The projects aimed at
improvement of social conditions of the people living
in the BTC pipeline vicinities. Andrew McAuslan said
that the population of the villages crossed by the
pipeline will be favoured when hiring personnel for
the pipeline.

?We have carried out agricultural projects, and
conducted trainings about microfinance credits. We
have acquired wide experience in Georgia and we are
going to use it in Azerbaijan,? said Andrew McAuslan.

He added that 15 international commercial banks are
participating in the pipeline project. BTC CO is
planning to carry out large-scale infrastructural
projects within the frames of the project and pledges
to care for integration of infrastructure.

Archil Maghalashvili, technical manager of Georgian
International Oil Corporation, said that the BTC oil
pipeline would be under tight monitoring. High
security measures have been taken to ensure security
of the Georgian stretch of the pipeline and avoid
environment pollution or other accidents.
As Georgia is situated in high seismological and
landslide risk zone, the project envisages additional
security measures. Archil Maghalashvili says that
additional geological field work has been done
alongside with the construction of the pipeline.

?40 ships carrying pipes and construction materials
have entered Poti port. We have received 700,000 pipes
and 438 engines were imported. 70 percent of the
pipeline corridor has been already prepared,? said
Archil Maghalashvili.

Manager of Statoil Turkey, Kietil Tanlend focused on
the Shahdeniz-Tbilisi- Erzerum gas pipeline. He said
Statoil, which is a shareholder of BTC pipeline
project, was established in 1972. The company produces
1 million barrel oil a day making the company the
third biggest oil operator in the world. Statoil is a
Norwegian company and is one of the leading oil
operators in Norway and Scandinavian countries.

Statoil holds 5.5 shares in BTC oil pipeline and 25.5
percent in Shahdeniz-Tbilisi-Erzerum gas pipeline.
Kietil Tanland pointed out that preparatory work for
the South Caucasian pipeline project was underway. He
said Shahdeniz-Tbilisi Erzerum pipeline will become
operational in 2006.

?With the demand on the energy resources rising in
Europe gas shipment acquires great importance. Gas
deposits in the South Caucasus have great potential
and the pipeline will help us to provide gas to
Europe. We will certainly study the demand on natural
gas at the European market and will make gas
production adequate to market demands,? said Kietil
Tanland.

He spoke about Georgia as an important and strategic
partner in the gas pipeline project. The
well-developed system will help to implement the
project in compliance with European standards.








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