Georgia

1
Georgia The Baku-Tbilisi-Ceyhan Pipeline

• Vanessa Helland
• hammvm_at_uwec.edu
• Geography 308 (Russia and Eastern Europe)
• Professor Zoltan Grossman
• University Wisconsin Eau Claire
• Spring 2005

2
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
3
2
http//mapage.noos.fr/dcolas/interneteuropeest.htm
l
3
The BTC Pipeline

• The Baku-Tbilisi-Ceyhan Pipeline began
  construction in May 2003
• In 2004 Georgias Defense Minister called the CIS
  yesterdays history and the countrys future
  was with NATO

http//www.usafe.af.mil/news/news03/uns03738.htm
http//georgia.usembassy.gov/events/event20041205P
ace.htm
4
Politics

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

• 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.

http//www.pinr.com/images/lib/georgia.jpg
5
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
6
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)

7
Politics

• Brings Georgia to international level
• Georgia is looking for protection from Russia
• NATO application 2006

http//www.zanato.com/pics/nato-flags.jpg
1999
2004
http//www.brahler-ics.co.uk/images/infracom-nato.
jpg
http//www.fas.org/man/nato/national/
8
The Pipeline
Contributors

• 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
http//www.caspiandevelopmentandexport.com/ASP/BTC
.asp
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).
9
Economics

• Georgias 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

10
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/ai11
2_folder/112_articles/112_btc.html
11
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
12
Local Concerns

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

http//www.gridtb.org/projects/CEO/images/seismici
ty.jpg
13
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 Georgias exports
• Oil spill would devastate streams and rivers

http//www.bpamoco.org.uk/environment/04-01-16csm.
htm
http//www.rzuser.uni-heidelberg.de/ci4/georgien/
geoinfo/newapp.htm
http//www.pitt.edu/AFShome/s/l/slavic/public/html
/courses/russ1771/labels/water/borj.jpg
14
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_ID157
15
Akhalkalaki

• Large Armenian minority population
• Route opposed by Azerbaijans government
• Fear of protests or sabotage

16
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
17
Sources

• Eurasian Net http//www.eurasianet.org/department
  s/insight/articles/eav31505.shtml
• http//www.eurasianet.org/eurasianet/departments/i
  nsight/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/ge
  orgia3.html
• One World Net http//www.oneworld.net/external/?ur
  lhttp3A2F2F
• http//africa.oneworld.net/article/archive/7161
• PanArmenian Net http//panarmenian.net/details/eng
  /?id498date2005-03-10
• Georgia Precarious Pipeline http//forests.org/art
  icles/reader.asp?linkid23309
• Turkish Press http//www.turkishpress.com/news.asp
  ?ID36638
• http//www.turkishpress.com/news.asp?ID39492
• www.turkishpress.com2Fnews.asp3Fid3D30475
• Alexanders Gas Oil http//www.gasandoil.com/go
  c/company/cnc30619.htm
• Bank Information Center http//www.bicusa.org/bic
  usa/issues/misc_resources/447.php
• BP without the PR http//www.bpamoco.org.uk/enviro
  nment/04-01-16csm.htm
• Caspian BTC http//www.caspiandevelopmentandexport
  .com/ASP/BTC.asp
• Civil Georgia http//www.civil.ge/eng/article.php
  ?id8094
• JINSA Online http//www.jinsa.org/articles/article
  s.html/function/view/categoryid/171/documentid/280
  9/history/3,2360,656,171,2809
• United Press International http//www.upi.com/view
  .cfm?StoryID20021015-054107-4457r