BTC & SCP Pipeline ProjectsBTC & SCP Pipeline ProjectsAzerbaijanAzerbaijan

AzerbaijanAzerbaijanWhere is it?Where is it?

MapsMaps

AZERBAIJANAZERBAIJANSome Facts:Some Facts:

►► 86,600 square kilometres (WA 2,500,00 sq km)86,600 square kilometres (WA 2,500,00 sq km)►► Of Azerbaijan's 8.3 million people, approximately 90 per Of Azerbaijan's 8.3 million people, approximately 90 per

cent are Azericent are Azeri--Turkic speaking Shi'ite Muslims. Turkic speaking Shi'ite Muslims. ►► The capital city of Baku has almost 2 million people The capital city of Baku has almost 2 million people ►► Once part of Persian and acquired by Russia in 1813Once part of Persian and acquired by Russia in 1813►► Oil discovered in 1873 Oil discovered in 1873 ►► Supplied 50% of worlds oil at the turn of the last centurySupplied 50% of worlds oil at the turn of the last century►► The Baku oil rigs were there before the rigs in Texas.The Baku oil rigs were there before the rigs in Texas.►► Azerbaijan's offshore oil fields were first developed by the Azerbaijan's offshore oil fields were first developed by the

Americans and then taken over by the Soviets in the Americans and then taken over by the Soviets in the 19201920’’s.s.

►► Azerbaijan became independent in 1991 Azerbaijan became independent in 1991 ►► In 2003 and 2004 GDP growth surged to about 10% p.a. In 2003 and 2004 GDP growth surged to about 10% p.a.

then about 20% in 2005. Growth is expected to exceed 20 then about 20% in 2005. Growth is expected to exceed 20 per cent in 2006 due to increased oil and gas exports. per cent in 2006 due to increased oil and gas exports.

►► Azerbaijan produces about 90% of the world's caviarAzerbaijan produces about 90% of the world's caviar

►► Oil now accounts for 80 per cent of Azerbaijan's exportsOil now accounts for 80 per cent of Azerbaijan's exports

BTC PIPELINEBTC PIPELINESome Facts:Some Facts:

►► BakuBaku--TbilisiTbilisi--Ceyhan (BTC) Pipeline: Crude oilCeyhan (BTC) Pipeline: Crude oil►► BTC is the 2BTC is the 2ndnd Longest Pipeline in the World at 1,760 km Longest Pipeline in the World at 1,760 km ►► Oil sourced from the Caspian Sea AzeriOil sourced from the Caspian Sea Azeri--ChiragChirag--Gunashli oil fields Gunashli oil fields ►► 188 kilometres of undersea pipe laid at depths up to 180 meters 188 kilometres of undersea pipe laid at depths up to 180 meters deep deep

to transport the extracted oil from an offshore drilling platforto transport the extracted oil from an offshore drilling platform to m to Sangachal terminal near Baku. Sangachal terminal near Baku.

►► The route of the pipeline crosses Azerbaijan and skirts Armenia The route of the pipeline crosses Azerbaijan and skirts Armenia to pass to pass through Georgia and Turkey. Of its total length of 1,760 km, 440through Georgia and Turkey. Of its total length of 1,760 km, 440 km km lies in Azerbaijan, 244.5 km in Georgia and 1,070 km in Turkey. lies in Azerbaijan, 244.5 km in Georgia and 1,070 km in Turkey. It It crosses several mountain ranges at altitudes of up to 2,830 m. Icrosses several mountain ranges at altitudes of up to 2,830 m. It also t also has to traverse 3,000 roads, railways and utility lines, both ovhas to traverse 3,000 roads, railways and utility lines, both overground erground and underground, as well as 1,500 watercourses of up to 500 m wiand underground, as well as 1,500 watercourses of up to 500 m wide.de.

►► By 2010 the BTC pipeline is expected reach a peak volume of 1 miBy 2010 the BTC pipeline is expected reach a peak volume of 1 million llion barrels per day. barrels per day.

SPC PIPELINESPC PIPELINESome Facts:Some Facts:

►► Shah Deniz South Caucas Pipeline (SCP) Pipeline: Natural GasShah Deniz South Caucas Pipeline (SCP) Pipeline: Natural Gas►► Caspian Sea which has recoverable reserves of 700 BCM of gas andCaspian Sea which has recoverable reserves of 700 BCM of gas and

300 M tons of condensate 300 M tons of condensate ►► Shah Deniz offshore three 90 km pipelines Shah Deniz offshore three 90 km pipelines –– a 26a 26”” gas pipeline and a gas pipeline and a

1212”” pipeline for condensate, and a 4pipeline for condensate, and a 4”” piggypiggy--backed mono ethylene backed mono ethylene glycol pipeline glycol pipeline

►► SCP is a 685 km 42" diameter lined coated pipeline constructed pSCP is a 685 km 42" diameter lined coated pipeline constructed parallel arallel to the BTC from Azerbaijan through Georgia to the Turkishto the BTC from Azerbaijan through Georgia to the Turkish--Georgian Georgian border, where it connects with the Turkish domestic gas network.border, where it connects with the Turkish domestic gas network. 440 440 km lies in Azerbaijan, 244.5 km in Georgia km lies in Azerbaijan, 244.5 km in Georgia

►► Capacity of SCP is 160 billion cubic metres of gas per yearCapacity of SCP is 160 billion cubic metres of gas per year►► BOTAS, the Turkish State pipeline company, is constructing a BOTAS, the Turkish State pipeline company, is constructing a

connector pipeline from Erzurum to the Turkishconnector pipeline from Erzurum to the Turkish--Georgian border Georgian border ►► Total SCP project cost estimate is US$ 1.2 Billion Total SCP project cost estimate is US$ 1.2 Billion

Pipeline Route: BTCPipeline Route: BTC

Pipeline Route: SCPPipeline Route: SCP

PIPELINE ROUTE MAPPIPELINE ROUTE MAP

BTC ConstructionBTC Construction►► The Sangchal Terminal in Baku has two crude storage tanks, a cenThe Sangchal Terminal in Baku has two crude storage tanks, a central control tral control

station, metering facilities and a pumping station. station, metering facilities and a pumping station. ►► Pipeline is 1,070 mm (42 inches) diameter for most of its lengthPipeline is 1,070 mm (42 inches) diameter for most of its length, narrowing to , narrowing to

865 mm (34 inches) diameter as it nears Ceyhan.865 mm (34 inches) diameter as it nears Ceyhan.►► The Pipeline includes 8 pumping stations, 2 intermediate piggingThe Pipeline includes 8 pumping stations, 2 intermediate pigging stations and stations and

101 block valve stations. 101 block valve stations. ►► The Ceyhan Marine terminal has seven crude oil storage tanks, a The Ceyhan Marine terminal has seven crude oil storage tanks, a metering metering

station, wastewater treatment, a vapour incineration facility anstation, wastewater treatment, a vapour incineration facility and a jetty d a jetty capable of loading two 300,000dwt tankers simultaneously capable of loading two 300,000dwt tankers simultaneously Total Project Total Project Constructed from 150,000 individual joints of line pipe, each meConstructed from 150,000 individual joints of line pipe, each measuring 12 m. asuring 12 m. Total weight of approximately 594,000 Tonnes of steelTotal weight of approximately 594,000 Tonnes of steel Construction Started Construction Started September 2002, September 2002,

►► Crude filling commenced in May 2005.Crude filling commenced in May 2005.►► Total Pipeline completed in July 2006Total Pipeline completed in July 2006►► Employed over 10,000 personnel. Maintenance will require 1,000 pEmployed over 10,000 personnel. Maintenance will require 1,000 personnel. ersonnel.

BTC Construction: ContractsBTC Construction: Contracts

►► Azerbaijan: The GreekAzerbaijan: The Greek--based Consolidated Contractors International (CCIC) based Consolidated Contractors International (CCIC) were awarded a contract for pipelay in Azerbaijan and the constrwere awarded a contract for pipelay in Azerbaijan and the construction of the uction of the scraper stations ($US229 million), scraper stations ($US229 million),

►► Georgia: The FrancoGeorgia: The Franco--British Spie Capag / US Petrofac for pipelay in Georgia British Spie Capag / US Petrofac for pipelay in Georgia and also the construction of pumping stations ($US248 million). and also the construction of pumping stations ($US248 million).

►► Additional contracts worth about $1.25 billion were later awardeAdditional contracts worth about $1.25 billion were later awarded in Turkey by d in Turkey by BOTAS to 3 pipeline contractors. BOTAS to 3 pipeline contractors.

BTC ECONOMICSBTC ECONOMICS

►► AzeriAzeri--ChiragChirag--Gunashli oil fields estimated to hold over 5 billion barrels of Gunashli oil fields estimated to hold over 5 billion barrels of recoverable oil recoverable oil

►► BTC Project value: $US 4 billion BTC Project value: $US 4 billion ►► Pipeline is Owned: 30%BP, 25% State Oil Co. of Azerbaijan, UnocaPipeline is Owned: 30%BP, 25% State Oil Co. of Azerbaijan, Unocal, Statoil, l, Statoil,

Total, Itoshu, remainder.Total, Itoshu, remainder.►► BTC pipeline throughput capacity is about 1 million barrels day BTC pipeline throughput capacity is about 1 million barrels day of oil. BTC of oil. BTC

pipeline fill capacity is 10 million barells of oil.pipeline fill capacity is 10 million barells of oil.►► BTC pipeline can supply approximately 1% of global demand.BTC pipeline can supply approximately 1% of global demand.►► Australia consumes about 0.65 million barrels day of oil productAustralia consumes about 0.65 million barrels day of oil products (produces s (produces

0.45mbd).0.45mbd).►► million barrels of oilmillion barrels of oil►► The pipeline will Oil will flow through the pipeline at 2 m per The pipeline will Oil will flow through the pipeline at 2 m per secondsecond►► The cost of transporting oil down the pipeline has been estimateThe cost of transporting oil down the pipeline has been estimated at $US3.2 d at $US3.2

per barrelper barrel►► Azerbaijan will earn about $??29 billion per year in oil revenueAzerbaijan will earn about $??29 billion per year in oil revenues, while Georgia s, while Georgia

and Turkey will collect transit fees of $600 million and $1.5 biand Turkey will collect transit fees of $600 million and $1.5 billion respectively llion respectively per year. per year.

►► the US military's Special Forces trained 1,500 to 2,000 Georgianthe US military's Special Forces trained 1,500 to 2,000 Georgian soldiers in soldiers in antianti--terrorism techniques under a $64 million program aimed at protecterrorism techniques under a $64 million program aimed at protecting the ting the pipeline against saboteurs pipeline against saboteurs

HYDRAULIC PROFILEHYDRAULIC PROFILE

Pipelines DesignPipelines Design

►►BTC Pipeline: BP Specifications and ASME BTC Pipeline: BP Specifications and ASME B31.4 Hydrocarbon Liquids PipelinesB31.4 Hydrocarbon Liquids Pipelines

►►SCP Pipeline: BP Specifications and ASME SCP Pipeline: BP Specifications and ASME B31.8 Gas Transmission PipelinesB31.8 Gas Transmission Pipelines

►►Stations and Facilities: BP Specifications and Stations and Facilities: BP Specifications and ASME B31.3 Station PipingASME B31.3 Station Piping

Pipelines DesignPipelines Design

►► High strength steel: 482 minimum yield strengthHigh strength steel: 482 minimum yield strength►► Wall thickness: 12.7, 14.3, 16.8, 19.1mm AzWall thickness: 12.7, 14.3, 16.8, 19.1mm Az►► 12m joints manufactured in Japan (for Az and 12m joints manufactured in Japan (for Az and

Georgia).Georgia).►► Design pressure 10.0MPa (1,450psi)Design pressure 10.0MPa (1,450psi)►► Internally lined with epoxyInternally lined with epoxy►► Externally coated with a epoxy/HDPE systemExternally coated with a epoxy/HDPE system►► Buried to a minimum 750mm coverBuried to a minimum 750mm cover►► Special design for seismic fault crossingsSpecial design for seismic fault crossings

HYDRAULIC PROFILEHYDRAULIC PROFILE

PIPELINE CLEARINGPIPELINE CLEARING

PIPELINE WELDINGPIPELINE WELDING

CONCRETE COATING TO PIPE CONCRETE COATING TO PIPE

PIPELINE THROUGH RIDGESPIPELINE THROUGH RIDGES

TRENCHES TRENCHES

PIPELINE THROUGH WADIPIPELINE THROUGH WADI’’ss

RIVER CROSSING: EARTHWORKSRIVER CROSSING: EARTHWORKS

PIPE INSTALLATIONPIPE INSTALLATION

PIPE INSTALLATIONPIPE INSTALLATION

ROLLER INSTALLATION: STRING PREPARATIONROLLER INSTALLATION: STRING PREPARATION

RIVER CROSSING: PIPE INSTALLATION: BY ROLLERRIVER CROSSING: PIPE INSTALLATION: BY ROLLER

ROLLER INSTALLATION: FLOAT AND SINK INSTALLATIONROLLER INSTALLATION: FLOAT AND SINK INSTALLATION

PIPE INSTALLATIONPIPE INSTALLATION

HDD CROSSING DESIGN HDD CROSSING DESIGN

HDD CROSSING mHDD CROSSING m

HDD RIVER CROSSINGSHDD RIVER CROSSINGS

CROSSING BY TUNNELLINGCROSSING BY TUNNELLING

TUNNEL CONFIGURATIONTUNNEL CONFIGURATION

WINCH and ANCHOR CONFIGURATIONWINCH and ANCHOR CONFIGURATION

TUNNEL SHAFT CONFIGURATIONTUNNEL SHAFT CONFIGURATION

KURRA RIVER CROSSINGKURRA RIVER CROSSING

RIVER BED EROSIONRIVER BED EROSION

CROSSING OTHER PIPELINESCROSSING OTHER PIPELINES

PIPELINE TIEPIPELINE TIE--ININ

PIPELINE TIEPIPELINE TIE--ININ

STATIONSSTATIONS

MAINLINE VALVE COMPOUNDMAINLINE VALVE COMPOUND

MAINLINE VALVE RPG PROOF WALLSMAINLINE VALVE RPG PROOF WALLS

Local AccommodationLocal Accommodation

LOCAL HAZARDSLOCAL HAZARDS

LOCAL HAULAGELOCAL HAULAGE

LOCAL TREATSLOCAL TREATS