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_Artırılması Koalisiyası .

 

For Improving Transparency
  in Extractive Industries

Azərbaycan Qeyri-Hökumət Təşkilatları Koalisiyası

The Coalition of Azerbaijan Non-Goverment Organization

SECTION

This day: 7 September 2008, Sunday | az |   ACTUAL

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Cost of South Caucasus Gas Main Surpasses Expenditure Target

Cost of South Caucasus Gas Main Surpasses Expenditure Target
Baku-Supsa requires 22.5 million for maintenance
In the first quarter of 2007, the factual amount of capital investment in the South Caucasus Gas Pipeline (SCGP) went beyond the forecast. Just like that, a total of 12 million U.S. dollars was been spent in capital expenditure on the implementation of the project since January through March, while some 41 million U.S. dollars had been budgeted for the entire 2007. Mr Bill Schrader, the president of BP Azerbaijan, said that the overrun was associated with the completion of certain components of the testing work outstanding since the end of last year.

Meanwhile, a large-scale overhaul continues on the Baku-Supsa Western Route Export Pipeline (WREP) which has been standing inoperative since October 2007. The corresponding repair programme also includes a component that provides for the shifting of the pipeline route for a distance of a kilometre alongside the Georgian sector. In addition to six million U.S. dollars which have been spent on taking security measures in a landslide area, it is planned to outlay 22.5 million U.S. dollars on pipeline upgrade in 2006 to 2007. The company management hasn’t provided any elaboration on when the pipeline will be re-commissioned, but has emphasized that the issue depends on the pace of development of the repair work.

Referring to an interview which The London Daily Mail had made with Les Abrahams, an ex representative of BP, concerning the company’s hand in the overthrow of the government of the Azerbaijan Popular Front movement and bribing the authorities in Azerbaijan in return for having favourable terms in the Contract of the Century, Mr Schrader said that BP was “not a political organisation” and worked in the framework of the legislation of the countries in which it had operations. According to him, BP has not been engaged in any political event that had occurred in Azerbaijan; hereby the interview was a fabricated fantasy. As to the claim of bribing the Government of Azerbaijan in the amount of 30 million U.S. dollars, Mr Schrader said that the company had never had an idea of greasing anybody’s palm, and there hadn’t been made any unofficial payment to the Government of Azerbaijan in addition to the bonuses which had been transferred and made public in the framework of the production-sharing agreement [on the development of the Azeri – Chirag – (deepwater) Gunashli oil fields].


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Last correction date of the file: 24/7/2008 - 15:7:34

 

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CONTENTS NEWS

16th number of information bulletin of “Improving Transparency in Extractive Industries” Coalition has been prepared.
Statement by civil society associations of Azerbaijan on the events in the Republic of Georgia (Baku, August 12, 2008)
Coalition of Public Unions for Increase of Transparency in Extractive Industries has opened its opinion on 8th Report (on results of 2007) regarding the mutual payments of Azerbaijani government as well as of companies from oil-gas sector.
“Implementation of EITI in Azerbaijan: retrospective view to a 5 years period” Press release of the Conference (17th June 2008 )
Report:  “ improving transparency of oil revenue expenses” project(26/05/2008)
Extractive Industry Transparency Initiative NGO Coalition Azerbaijan, Round-Table Discussions on “Management of SOFAZ’s Assets; how can they protected from risks?” Press-Release (Baku, 18/04/2008)
Azerbaijan discloses seventh EITI report
Press-release: General Assembly of ITEI Coalition #10(20/10/2007)
Press-release: The coalition of local NGOs Increasing Transparency in Extractive Industries (ITEI) holds its 10th General Assembly at the AF-HOTEL-AQUAPARK in Novkhany, a settlement on the outskirts of Baku (19/11/2007)
EXTRACTIVE INDUSTRY TRANSPARENCY JOURNAL ISSUED IN AZERBAIJAN
Moore Stephens to collate next EITI reports
The 7th EITI reporting cycle is underway in Azerbaijan

 

 
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