In 2006 BTC Co pipeline company forecasts increase of expenses for the project on the construction of the Baku-Tbilisi-Ceyhan (BTC)main export oil pipeline from $641m planned in 2005 to $832m, David Woodward, the President of the BP Azerbaijan, an operator of the AIOC, stated to a news conference in Baku on 19 April, Trend reports. BP heads BTC Co.
Increase in the forecast expenses in the project for 2006 was mainly linked with the increase of expenses for fulfillment of the oil pipeline, the lag in the schedule of construction and some commercial issues with contractors.
The President of BP Azerbaijan said that in the first quarter of 2006 capital expenses under the Azeri-Chirag-Gunashli (ACG) project made up $613m against $2552m designed for 2006. Under the BTC project in the first quarter of 2006 the expenses (linefill and construction) reached $247m. In January to March expenses under the Shah-Deniz project made up $288m against the target of $865m designed for 2006. Thus, in the first quarter of 2006 the general capital expenses under three projects comprised $1,148bn.