Georgia & The Baku-Tbilisi-Ceyhan Pipeline

Vanessa Hellandhammvm@uwec.edu

Geography 308 (Russia and Eastern Europe)Professor Zoltan Grossman

University Wisconsin – Eau ClaireSpring 2005

Georgia• A Brief History After

leaving the Soviet Union:– Georgia Declares

Independence April 9, 1991– Georgia and Abkhaz forces

collide 1992– October 1993 the port of

Poti is taken by Abkhazian forces and Georgia reluctantly joins the CIS in return for Russia reopening supply lines.

– Fighting and tension continue in 3 regions of Georgia: 1: Abkhazia, 2: Ajaria, & 3: South Ossetia

1

2

3

http://mapage.noos.fr/dcolas/interneteuropeest.html

The BTC Pipeline

• The Baku-Tbilisi-Ceyhan Pipeline began construction in May 2003

• In 2004 Georgia’s Defense Minister called the CIS “yesterday’s history” and the country’s future was with NATO

http://www.usafe.af.mil/news/news03/uns03738.htm http://georgia.usembassy.gov/events/event20041205Pace.htm

Politics

– Originally started for Pankisi Gorge

– Those soldiers were sent to Iraq instead

– They will be providing security for the BTC pipeline. US provided additional funding for

this protection.

•In 2002 the U.S. and Georgia began the Georgia Train & Equip counter-terrorism action in the Pankisi Program (GTEP)

http://www.pinr.com/images/lib/georgia.jpg

The Pipeline• Runs through Azerbaijan, Georgia, & Turkey• Could have passed through Armenia, but at war with Azerbaijan • Bypassed Iranian and Russian routes

http://www.caspiandevelopmentandexport.com/ASP/map_large.html

Politics

• Why go through Georgia?– U.S. mistrust of Russia and Iran– Russia has a current monopoly on the

Caspian oil – Azerbaijan/Armenian conflict (Nagorno-

Karabakh)

Politics• Brings Georgia to international level

– Georgia is looking for protection from Russia• NATO application 2006

http://www.zanato.com/pics/nato-flags.jpg

http://www.fas.org/man/nato/national/http://www.brahler-ics.co.uk/images/infracom-nato.jpg

19992004

The Pipeline

• Run by British Petroleum (BP)

• Will cost $2.9 Billion

• 1,090 miles long

• Expected to carry 1 million barrels of crude oil a day

Azerbaijan

UK

SOCAR (the state oil company of Azerbaijan); BP (UK); TPAO (Turkey); Statoil (Norway); Unocal (USA); Itochu (Japan); Amerada Hess (USA); Eni (Italy); TotalFinaElf (France); INPEX (Japan) and ConocoPhillips (USA).

http://www.caspiandevelopmentandexport.com/ASP/BTC.asp

Contributors

Economics

• Georgia’s state budget is less than $1 billion a year

• Transit fees from the BTC pipeline will bring in $65 million a year

• Georgia is responsible for security and any losses incurred from damage to the pipeline

Local Economics

• During construction of the pipeline about 2,000 Georgians will be employed

• Their salaries will range from $200 to $550 a month (some Georgians live on $30 a month)

• After construction only 100 permanent jobs will remain

• Former President Eduard Shevardnadze promised 60,000 jobs

http://www.azer.com/aiweb/categories/magazine/ai112_folder/112_articles/112_btc.html

Local Corruption• KHAISHI, GEORGIA

– 130 farming families– Land collectively owned– Pipeline to pass through their village and $330,000 to

be split among them– Former village headman and relatives received all of

the money

http://www.bpamoco.org.uk/environment/04-01-16csm.htm

Local Concerns

• The pipeline passes over 4 seismically active faults in Georgia alone

http://www.gridtb.org/projects/CEO/images/seismicity.jpg

Local Concerns• The Pipeline is routed through the Borjomi region

– Passes within 15 km. of Borjomi National Park– Borjomi exports mineral water

• Accounts for 10% of Georgia’s exports• Oil spill would devastate streams and rivers

http://www.rzuser.uni-heidelberg.de/~ci4/georgien/geoinfo/newapp.htm

http://www.bpamoco.org.uk/environment/04-01-16csm.htm

http://www.pitt.edu/AFShome/s/l/slavic/public/html/courses/russ1771/labels/water/borj.jpg

Local Conflicts

• The pipeline is also bypassing a region of Georgia known as Akhalkalaki – Location of Russian military base

• This is the largest employer of the local population

http://www.agbu.org/agbunews/display.asp?A_ID=157

Akhalkalaki • Large Armenian

minority population– Route opposed by

Azerbaijan’s government• Fear of protests or

sabotage

The Pipeline: Good or Bad?• Currently the pipeline is 93% complete

• It is expected to become operational in June of 2005

http://www.peacecorpsonline.org/messages/messages/467/2013527.html

Sources• Eurasian Net: http://www.eurasianet.org/departments/insight/articles/eav31505.shtml

» http://www.eurasianet.org/eurasianet/departments/insight/articles/eav022001.shtml

• BTC Section http://www.azer.com/aiweb/categories/magazine/ai112_folder/112_articles/112_btc.html• Baku Ceyhan Campaign http://www.baku.org.uk/• PBS http://www.pbs.org/wnet/extremeoil/journey/georgia3.html• One World Net http://www.oneworld.net/external/?url=http%3A%2F%2F

» http://africa.oneworld.net/article/archive/7161

• PanArmenian Net http://panarmenian.net/details/eng/?id=498&date=2005-03-10• Georgia Precarious Pipeline http://forests.org/articles/reader.asp?linkid=23309• Turkish Press http://www.turkishpress.com/news.asp?ID=36638

» http://www.turkishpress.com/news.asp?ID=39492» www.turkishpress.com%2Fnews.asp%3Fid%3D30475

• Alexander’s Gas & Oil http://www.gasandoil.com/goc/company/cnc30619.htm• Bank Information Center http://www.bicusa.org/bicusa/issues/misc_resources/447.php• BP without the PR http://www.bpamoco.org.uk/environment/04-01-16csm.htm• Caspian BTChttp://www.caspiandevelopmentandexport.com/ASP/BTC.asp• Civil Georgia http://www.civil.ge/eng/article.php?id=8094• JINSA Online

http://www.jinsa.org/articles/articles.html/function/view/categoryid/171/documentid/2809/history/3,2360,656,171,2809• United Press International http://www.upi.com/view.cfm?StoryID=20021015-054107-4457r• Georgia wants Russian Bases shut down http://feeds.bignewsnetwork.com/?sid=97923cfab1941a34• Caspian Energy http://www.caspenergy.com/17/wood_e.html• Nagorno Conflict http://www.coe.int/T/E/Com/Files/Events/2003-04-Youth-conflicts/Nagorno_conflict.asp• Hydrocarbons Technology http://www.hydrocarbons-technology.com/projects/bp/index.html#bp4