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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.

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

 

Financial contractors

ABN Amro – arranging the finance package

Baker Botts – legal advice on treaties / host government agreements etc

Citigroup - arranging the finance package

Lazard – overall financial advice

Mizuho - arranging the finance package

Mott McDonald - reviewing environmental impact assessment for lenders

Société Générale – arranging the finance package

Sullivan & Cromwell – legal advice on financing

 

Construction contractors:

ABB - security and control system

Amec - parent company of Spie Capag (see below)

Bechtel – engineering, Azerbaijan and Georgia sections, plus procurement and construction management

Botas – construction contractor, Turkish section

Care International - managing "community investment programme" in Georgia

Consolidated Contractors International – pipelay, Azerbaijan section

Ecology & Environment Inc - environmental monitoring system

ERM – environmental impact assessment, Turkey section; plus social impact assessment, all sections

Fluor Daniel - basic engineering (now complete)

Gorbi - environmental impact assessment, Georgia section

Mercy Corps - managing "community investment programme" in Georgia

Northern Power - power systems

Pace Consultants – technical advice

Petrofac – pipelay, Georgia section, plus facilities, Azerbaijan and Georgia sections

RSK - environmental impact assessment subcontractor

Spie Capag – pipelay, Georgia section, plus facilities, Azerbaijan and Georgia sections

URS – environmental impact assessment, Azerbaijan and Georgia sections

 

Equipment suppliers:

Europipe - pipes

Northrop Grumman – security telecommunications equipment

Ruhrpumpen - pumps

Sumitomo - steel pipes

Waertsilae - pump units