In three weeks after fire, the Baku-Tbilisi-Ceyhan pipeline (BTC) re-established its activity. Last week on 20 August transportation of Azerbaijani oil via BTC was re-started. The first Azerbaijani oil already entered into the reservoirs in Ceyhan, and from the beginning of this week, loading oil to the tankers will begin. According to the representative of the Energy Ministry of Turkey, Akif Sam, on 22 August the pipeline worked at 70% of capacity, transporting nearly 700,000 barrels per day.
Last week on 5 August in midnight, in 60 km of Turkish road of Arzinjan-Refakhiye, near the village of Yurtbashi, an explosion occurred on the Baku-Tbilisi-Ceyhan pipeline.
Azerbaijan International Operating Company (BP-operated), which carries out full-scale development of Azeri-Chirag-Guneshli fields in Azerbaijan section of Caspian, reduced production because of the fire on the pipeline. BP does not announce volume of reduction. The production was lowered because of the termination of export along the Baku-Tbilisi-Ceyhan pipeline and the filling up of reservoirs in Sangachal oil terminal of BP Company.
Meanwhile re-establishment of oil transportation via BTC became one of the major factors of drop in oil prices on 22 August in the largest world markets. The amount of price reduction comprised more than $4 per barrel. As a result, London oil exchange completed work on 22 August with the price at $115.48 per barrel. During stopping of oil pipeline, price increase was observed for oil.
The total length of BТС is 1.768km, including the 443km section running via Azerbaijan, the 249km section via Georgia and the 1.076km via Turkey. Construction of the pipeline was commenced in April 2003 and it was filled with oil on 18 May 2005.
A total of $4bln has been spent for the construction of BTC 1,768km pipeline, not including the fulfilment of the pipeline, financial expenses and payment of the bank rates. The credit allocated for the project totalled $2.6bln.
BTC Company Shareholders includes: BP (30.1%); AzBTC (25%); Chevron (8.90%); Statoil Hydro (8.71%); ТРАО (6.53%); Eni (5%); Total (5%); Itochu (3.40%); Inpex (2.50%); ConocoPhillips (2.50%) and Amerada Hess (2.36%).