Managing risk in big projects - The BTC story

The pipeline, one of the largest ever built, was constructed as the principle oil export route for the Azeri, Chirag and Gunashli (ACG) field in the Caspian..

According to Michael Townshend, President of BP's operations in Oman and until recently CEO of the BTC Pipeline Company, the hurdles to overcome were not just limited to the engineering effort. "To succeed needed years of planning, comprehensive studies, sound contracting strategy, logistics, an ability to overcome challenges and to work constructively with each and every stakeholder to listen to their ideas, benefit from their experience and to gain their support."

Speaking at MEED's Project Delivery in the Oil and Gas Sector conference in Abu Dhabi, Townshend explained "In developing the fields and the BTC pipeline, we have helped bring together three nations, each with their own distinct expectations and needs; engaged multilateral lending agencies, a wide range of non-governmental organisations, the governments of Europe and the US, communities along the route and many other stakeholders. Put this together with daunting technical challenges and one has a hugely complex project being conducted and delivered under the never ending glare of public and media scrutiny."

By creating the first direct pipeline link between the landlocked Caspian Sea and the Mediterranean, the BTC project is an important new link in the global energy system, with a positive economic impact on the countries and communities.through which it passes and providing a new diversified source of energy to world markets.

"Azerbaijan has been linked with oil for centuries, and was a leading player in the emerging oil and gas industry in the 19th century. The Caspian region can now claim a new role at the forefront of the energy industry in the 21st century."

The BTC consortium has 11 shareholders: BP (30% and operator), SOCAR (25%), Unocal (8.9%), Statoil (8.7%), TPAO (6.5%), Total (5%), Agip (5%), Itochu (3.4%), INPEX (2.5%), ConocoPhilips (2.5%) and Delta Hess (2.36 %).