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  • Officials inaugurate U.S.-backed pipeline

    United Press International
    May 26 2005

    Officials inaugurate U.S.-backed pipeline

    By Andrea R. Mihailescu May 26, 2005, 13:10 GMT



    WASHINGTON, DC, United States (UPI) -- Officials Wednesday began
    filling the U.S.-backed $3.6 billion Baku-Tbilisi-Ceyhan oil pipeline
    transporting Caspian crude to western markets.

    Leaders from Azerbaijan, Kazakhstan, Georgia and Turkey inaugurated
    the pipeline at the opening ceremony at an oil terminal near the
    Azeri capital of Baku. Despite opposition to the pipeline, a few
    Russian representatives were present at the ceremony.

    The pipeline received opposition from many. Opposing any route that
    would bypass Russian territory, Russians unsuccessfully lobbied for
    their own pipeline route passing through Chechnya and Novorossiysk.

    Iran also expressed its dissatisfaction with the pipeline as it
    sought its own territory as the optimum route for the passage of
    Caspian oil.

    For Arab monarchies, an alternative source of energy resources on the
    global market was a serious blow.

    "We have managed to do this. We have done it," Azeri President Ilham
    Aliyev said during the opening ceremony. "Some people didn`t think it
    was possible, some treated the project with suspicion, while others
    even wanted to impede this. But none of these worked. Thanks to our
    friends and neighbors -- the union of Turkey, Azerbaijan and Georgia
    -- the assistance of the U.S. to the project ... "

    Although the 1,100-mile pipeline may alleviate some western
    dependence on Middle East oil, the BTC faces a number of security
    challenges. One of the major challenges is the potential escalation
    over Nagorno Karabakh, which was overtaken by ethnic Armenian
    separatists over a decade ago. Other issues include possible crime
    along the BTC`s route such as local tapping into the pipeline or
    environmentalists attack it.

    In August, Azerbaijan, Georgia and Turkey will conduct joint
    exercises in an effort to ensure the security of the pipeline,
    according to the Georgian defense ministry. The militaries of the
    three countries will receive training on how to prevent terror
    attacks, acts of sabotage and environmental catastrophes along the
    pipeline route. In case of sabotage or an environmental catastrophe
    on the territory of either of the transit countries, the military of
    the other two countries will provide assistance.

    "Longstanding U.S. policy has been that the governments of the region
    are responsible for the security of the pipelines on their
    territory," Steven Mann, senior U.S. official responsible for Caspian
    pipelines, told UPI. "The United States can provide training and
    advice, but pipeline security is a national responsibility."

    Georgia hired the Northrop Group to develop an aerial monitoring
    system along the pipeline`s route and its adjacent area. Georgia
    received radar systems similar to those the U.S. currently uses in
    Afghanistan, according to Giorgi Chanturia, president of the Georgian
    International Oil Corporation.

    The pipeline has a capacity to transport approximately 50 million
    tons annually. Currently standing at 95 percent completion, it will
    take 10 million barrels to fill the pipeline before pumping can
    begin. Under the agreement, the pipeline project is supposed to be
    completed in the first six months of 2005. For each day late,
    contractors would have to pay a fine of $500,000.

    Energy experts believe the pipeline contains the world`s
    third-largest oil and gas reserves.
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