$4 billion capital expenditure in Azerbaijan
27 April 2003
Baku —The capital expenditures in the Azeri
projects that BP operates (namely, Azeri-Chirag-Guneshli, Shahdeniz
and the Baku-Tbilisi-Ceyhan oil pipeline) would amount to $4 bn
by the end of this year, president of BP Azerbaijan David Woodward
said at the press conference in Baku today.
According to Mr Woodward, the operating costs of AIOC (ACG) amounted
to $21 mn in the first quarter of this year, while the planned annual
operating costs equal $100 mn; the capital expenses of the consortium
equalled $439 mn in the first quarter while the total planned for
this year equals $2052 mn.
The operating costs of the consortium reached $88 mn in 2002, which
was $4 mn less than it was proposed to spend last year. The capital
expenses of AIOC equalled $1.172 bn last year, as against the referring
plan for $1.151 bn, which means there was an increase by $21 mn
in capital expenses last year.
The operating costs are going to be higher than they were in 2002
because of the additional well work-over and equipment repair plans.
The dramatic increase of the capital expenses is consequent to the
larger amount of work that has to be done in the format of the ACG
BP, the leader of AIOC, employs approximately 1 thousand citizens
of Azerbaijan; moreover, it is planned to take on more than 100
citizens in addition to that this year.
The construction contractors working in Azeri have more than 4
thousand citizens of Azerbaijan involved in their operations, while
it is forecast that the maximal number of Azeri citizens will be
employed this year, namely, there will be 6 thousand new positions
for locals as against the previously planned 5 thousand positions.
There will be approximately 10 thousand jobs opening in relation
with construction of the BTC pipeline, including 2.3 thousand in
Azerbaijan, 2.5 thousand in Georgia and 5 thousand in Turkey. In
addition, these three countries' citizens will be able to obtain
long-term employment at the pipeline facilities during the period
There will be many new jobs in the Shahdeniz project as well, both
at the construction stage and during the period of operation. The
construction phase is going to provide employment for 4.2 thousand
locals to build the South-Caucasian Pipeline; also, 1.3 thousand
vacancies more will be opened for construction to be carried out
onshore and offshore.
Approximately thirty local companies are involved in construction
activities within the scope of BP's project, for example, Azerkorpu
Rovshan Oguz, AzFen, SPS, Azertunnel, Kaspmornefteflot, Azpetrol,
Encotec and Neptune. (Azer-Press Azerbaijan)
Posted by Richard Price,
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