BTC Co. Grants USD 46 Million to Georgia

The Baku-Tbilisi-Ceyhan Pipeline Company (BTC Co.), led by BP, signed two new protocols with the Georgia government on October 10 that envisage new grant programs totaling more than USD 46 million, according to a press release issued by the BP Tbilisi Office on October 11.

Georgian Prime Minister Zurab Zhvania and Michael Townshend, Chief Executive Officer of BTC Co. signed the protocols after visiting the construction area at the ecologically sensitive Borjomi section of the BTC pipeline, which is to carry Azeri oil to the western markets via Georgia and the Turkish Mediterranean port of Ceyhan starting in 2005.
 
Under the first protocol, the parties agree to formalize obligations concerning the provision of pipeline security in a manner consistent with international security and human rights undertakings. Through this agreement, BTC Co. will provide the government with a range of necessary equipment, including vehicles and accommodation for government security personnel, together with maintenance support.  The total value of the items to be provided is USD 6 million, with maintenance support of USD 1 million per year for the life of the BTC pipeline.
 
Under the second protocol, BTC Co. will provide a series of grants to the Georgian government, which are to be used for the funding of social and economic projects. The total funding for the programme amounts to USD 40 million through 2010, with a further US$1 million per year for the remaining life of the BTC pipeline.

The BP has also announced that it will invest USD 10 million in Georgia in a range of projects, including education, healthcare, cultural heritage, energy sector revitalisation and the promotion of business and civil society links between Georgia and the European Union.
 
The BTC Co. shareholders are: BP (30.1%); SOCAR (25.00%); Unocal (8.90%); Statoil (8.71%); TPAO (6.53%); Eni (5.00%); Total (5.00%), Itochu (3.40%); INPEX (2.50%), ConocoPhillips (2.50%) and Amerada Hess (2.36%).