Current prices for oil not concerns profitability of Baku-Tbilisi-Ceyhan oil pipeline: minister

Oil&Gas Materials 13 June 2009 13:18 (UTC +04:00)

Azerbaijan, Baku, June 13 / Trend E. Ismayilov /

Current level of prices for oil does not concern profitability of export Baku-Tbilisi-Ceyhan oil pipeline, Azerbaijani minister of industry and energy Natik Aliyev said on June 13.

"Turkey and Georgia get payment for transit via their territory. Certain fixed payment fall on each barrel that does not depends on prices for oil," Aliyev said.

While constructing and launching of Baku-Tbilisi-Ceyhan oil pipeline, its profitability was intended for lower prices for oil than current prices, representatives of the Azerbaijani government said. So, there is no problem with profitability of pipeline. 

Total length of Baku-Tbilisi-Ceyhan oil pipeline is 1,768 kilometers, 443 kilometers stretch via Azerbaijan, 249 kilometers via Georgia, 1,076 kilometers via Turkey. Construction of pipeline launched in April 2003. It was filled with oil on May 18, 2005.

Construction of oil pipeline was worth $4 billion. These expenses include construction operations, filing the pipeline. Financial expenses and payment of banking percents are included. Sum of total financial loan hits $2.6 billion. 

Share holders of BTC Co include: BP (30.1 percent); AzBTC (25 percent); Chevron (8.90 percent); StatoilHydro (8.71 percent); ТРАО (6.53 percent); Eni (5 percent); Total (5 percent); Itochu (3.40 percent); Inpex (2.50 percent); ConocoPhillips (2.50 percent) and Hess (2.36 percent).

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