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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
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