BP: Amendments to agreement on BTC to create conditions for pipeline's effective operation
Azerbaijan, Baku, Oct. 29 /Trend, S.Aliyev/
As a result of long negotiations with the Botas International Limited (BIL) - operator of the Baku-Tbilisi-Ceyhan pipeline on the territory of Turkey, the operating agreement on the pipeline has been amended, BP Azerbaijan (operator of the pipeline on the territories of Azerbaijan and Georgia) told Trend on Saturday.
"We, as operators of the Baku-Tbilisi-Ceyhan pipeline, believe that this amendment will create conditions for BIL to continue safe, reliable and efficient operation of the pipeline on long-term and sustainable basis," the company said.
The package of energy agreements signed between Turkey and Azerbaijan also includes an agreement on amendments to the document on the Baku-Tbilisi-Ceyhan pipeline, which transports Azerbaijani oil through Turkey, the Minister of Energy and Natural Resources of Turkey Taner Yildiz told Turkish media.
Amendments made to the agreement will bring Turkey additional revenue of $3.7 billion, whereas according to the previous agreement, the loss of Turkey had to total $1 billion, said Yildiz.
Negotiations on amending the agreement on the Baku-Tbilisi-Ceyhan pipeline have been conducted for a long time. The talks were initiated by the Turkish Botas International Limited (BIL), which is the operator of the pipeline on Turkish territory.
Major losses of BIL occurred because of the high cost of gas from the Shah Deniz field used by the company in pumping stations of the Baku-Tbilisi-Ceyhan pipeline.
Yildiz said because of increasing the cost of gas, the losses of only BIL totals $30 million per year. During the talks, an agreement was reached on reducing the cost of gas delivered to BIL. In addition, Turkey's costs worth $100 million will be compensated.
As of Oct. 29, starting with the second in June 2006, the Turkish company was shipped from Ceyhan oil terminal about 1.3 billion barrels of oil received through the Baku-Tbilisi-Ceyhan (BTC).
The BТС's total length is 1.768 kilometers including a 443-kilometer section running via Azerbaijan, a 249-kilometer section traversing Georgia and a 1.076-kilometer section passing through Turkey. The pipeline's construction began in April 2003. First oil was marked May 18, 2005.
BTC Co. shareholders include: BP (30.1 percent); AzBTC (25 percent); Chevron (8.90 percent); Statoil Hydro (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 Amerada Hess (2.36 percent).