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Contractors involved in the pipelines Although BP is the ‘operator’ of the pipeline project, and the lead shareholder, it is not employees of BP and its partner oil companies that would dig the trench, weld the pipes or install the pumps. Nor even employees of BP that would write the legal agreements, or carry out the environmental studies, or produce leaflets promoting the project. These jobs are carried out by employees of other companies contracted to BP for particular areas of work – companies like Amec of the UK, Spie Capag of France, Ruhrpumpen of Germany, Baker Botts of the USA, ERM of the UK and McQuillan Young of the UK. This process is known as outsourcing. The complex network of organisations working on the Baku-Tbilisi-Ceyhan pipeline project is shown in the diagram below. Diagram to follow soon But because the system is complex, BP has a difficult job holding it all together. As David Woodward, the President of BP Azerbaijan has said: "To complicate matters, many of the bids for the project have expiration dates on them. For example, a company might say that it can provide pipe, pumps and other equipment, but that the bid is only valid for three months. A company can’t keep it’s bid open indefinitely without a commitment from us. If they have this major contract just hanging out there, they won’t be able to continue doing business with others. And if they don’t see the whole thing moving ahead, then they’re not gong to leave those offers on the table. So at that decisive point, there is not going to be a lot of time before we have to make a decision. Otherwise the whole thing starts to unravel... " Azerbaijan International, summer 2001 Contractors involved in BTC pipeline: ABN Amro – reviewing the finance package Baker Botts – legal advice on treaties / host government agreements etc Bechtel – engineering, Azerbaijan and Georgia sections, plus procurement and construction management Botas – construction contractor, Turkish section Consolidated Contractors International – pipelay, Azerbaijan section ERM – environmental impact assessment, Turkey section; plus social impact assessment, all sections Lazard – co-ordinating the finance package Pace Consultants – technical advice Petrofac – pipelay, Georgia section, plus facilities, Azerbaijan and Georgia sections Société Générale – reviewing the finance package Spie Capag – pipelay, Georgia section, plus facilities, Azerbaijan and Georgia sections Sullivan & Cromwell – legal advice on financing URS – environmental impact assessment, Azerbaijan and Georgia sections Equipment suppliers: Northrop Grumman – security telecommunications equipment Ruhrpumpen Subcontractors: |
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