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Context of 'May 25, 2005: BTC Pipeline Opens'

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March 4, 2003: BTC Pipeline Discussed

The Brookings Institution hosts the Baku-Tbilisi-Ceyhan (BTC) Pipeline Project Roundtable. The proposed pipeline would transport Caspian Sea oil 1000 miles from Azerbaijan, through Georgia, and to the Turkish Mediterranean port of Ceyhan. Delegates from each of the three countries and executives and consultants from British Petroleum attend the discussion. The US is a strong supporter of the pipeline project because it believes the pipeline will deny Iran leverage in the transportation of oil and gas from Central Asia and the Caspian Basin. [Alexander's Gas & Oil Connections, 11/27/2002; Institution, 3/4/2003]

Entity Tags: British Petroleum, Brookings Institution

Timeline Tags: US confrontation with Iran

May 25, 2005: BTC Pipeline Opens

The $4 billion US-backed Baku-Tbilisi-Ceyhan (BTC) pipeline officially opens. The pipeline begins in Baku, Azerbaijan and travels 1,762 km (1,000 miles) through Georgia to the Mediterranean port city of Ceyhan in Turkey. The pipeline has been under construction for ten years and was built by a consortium of oil companies including Amerada Hess, ConocoPhillips, Eni, Inpex, Itochu, Statoil, Total, SOCAR, TPAO, Unocal, and BP. The pipeline is expected to bring one million barrels of oil per day to the West. [Institution, 3/4/2003; BBC, 5/5/2005; BBC, 5/25/2005]

Entity Tags: Unocal, British Petroleum, TPAO, SOCAR, Total, Eni, ConocoPhillips, Amerada Hess, Inpex, Itochu, Statoil

Timeline Tags: US confrontation with Iran, Peak Oil

Iran downplays the significance of the opening of the US-backed $4 billion dollar Baku-Tbilisi-Ceyhan (BTC) pipeline (see May 25, 2005) that will carry oil from the Caspian Sea to the Mediterranean port city of Ceyhan, Turkey. The project was supported by the US government, which believes the pipeline will weaken Iran’s leverage over the distribution of oil. Mahmood Khagani, director for Caspian Sea Oil and Gas Affairs in Iran’s petroleum ministry, says the project makes little economic sense. “Iran’s route is the shortest, cheapest, and potentially the most lucrative,” he says. [Agence France-Presse, 6/9/2005]

Entity Tags: Mahmood Khagani

Timeline Tags: US confrontation with Iran

The first oil pumped from Baku, by the Caspian Sea in Azerbaijan, arrives in Ceyhan, on Turkey’s Mediterranean coast, and is loaded onto a ship. The 1,770 km pipeline, which passes through the Georgian capital of Tbilisi, bypasses Russia and Iran for geopolitical reasons. The main shareholder is British Petroleum, and other significant shareholders include the State Oil Company of Azerbaijan (SOCAR), Statoil of Norway, and the US company Unocal, which has an 8.9% interest and became interested in the project no later than 1998. Unocal begins losing interest in a pipeline across Afghanistan around the same time (see December 5, 1998). Substantial amounts to finance the $3-4 billion Baku-Tbilisi-Ceyhan (BTC) pipeline were arranged by the World Bank’s International Finance Corporation and the European Bank for Reconstruction and Development. The consortium members put up the remaining 30%. [US Congress, 2/12/1998; Alexander's Gas and Oil Connections, 7/12/2002; Guardian, 12/1/2003; Guardian, 5/26/2005; Eurasia Daily Monitor, 5/31/2005; Turkish Weekly, 5/29/2006] Journalist Pepe Escobar comments: “In terms of no-holds-barred power politics and oil geopolitics, BTC is the real deal—a key component in the US’s overall strategy of wrestling the Caucasus and Central Asia away from Russia—and bypassing Iranian oil and gas routes… BTC makes little sense in economic terms. Oil experts know that the most cost-effective routes from the Caspian would be south through Iran or north through Russia. But BTC is a designer masterpiece of power politics—from the point of view of Washington and its corporate allies. US Vice President Dick Cheney, already in his previous incarnation as Halliburton chief, has always been a huge cheerleader for the ‘strategically significant’ BTC.” Escobar also mentions that the amount of Caspian oil was overestimated (see November 1, 2002), “the Caspian may hold only 32 billion barrels of oil—not much more than the reserves of Qatar, a small Gulf producer.” [Asia Times, 5/26/2005] However, the Caspian area is still believed to hold considerable amounts of natural gas. The construction of this pipeline does not halt plans for the construction of a natural gas pipeline from Turkmenistan across Afghanistan to the Indian Ocean (see January 18, 2005).

Entity Tags: Pepe Escobar, Richard (“Dick”) Cheney, British Petroleum, Statoil, State Oil Company of Azerbaijan, Unocal

Timeline Tags: Complete 911 Timeline

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