Btc Pipeline: Turkish Delight or Russian Roulette?
INTRODUCTION Baku-Tbilisi-Ceyhan (BTC) pipeline is an oil pipeline that transports crude oil Caspian Sea to the Turkish coast, over three countries.
BTC Company is a joint venture company responsible for the construction and operation of the whole $4bn pipeline, led by BP as majority shareholder.
Spread across Azerbaijan, Georgia and Turkey largest cross-border infrastructure construction project in the world dubbed the “contract of the century”. Financing was agreed after over two years of appraisal of the potential environmental and social impacts relating to the project.
An underlying strategy is to reduce dependency on OPEC oil producers in the turbulent Middle East and to avoid Russia seen by America as a resurgent superpower.
Aside from indirect benefits; Georgia and Turkey gain financial benefits through transit fees and Azerbaijan through the royalties and tax revenues,
However, BTC co. encountered several social and environmental issues during the construction of the 1768km pipeline. Limited routing options meant encountering geo-hazard risks, potential harm and disturbance of communities and natural habitat, temporary land acquisition, revenue management and a volatile political environment.
Thus this project received intense scrutiny by stakeholders and press for its lack in humility and effectiveness in resolving political, social, developmental and security concerns.
THE OBJECTIVE/GOALS
Stakeholder map. A visual mapping of parties that affect or about affected by an organization, strategy and in this case a project. Helps us identify the expectations and power of different stakeholders, this understand what ethical issues dilemmas are to be understood and resolved. METHOD / FRAMEWORK FOR ANALYSIS We have chosen a normative approach (what should be done) for our analysis as opposed to a descriptive approach (how it is done).
BTC Company is a joint venture company responsible for the construction and operation of the whole $4bn pipeline, led by BP as majority shareholder.
Spread across Azerbaijan, Georgia and Turkey largest cross-border infrastructure construction project in the world dubbed the “contract of the century”. Financing was agreed after over two years of appraisal of the potential environmental and social impacts relating to the project.
An underlying strategy is to reduce dependency on OPEC oil producers in the turbulent Middle East and to avoid Russia seen by America as a resurgent superpower.
Aside from indirect benefits; Georgia and Turkey gain financial benefits through transit fees and Azerbaijan through the royalties and tax revenues,
However, BTC co. encountered several social and environmental issues during the construction of the 1768km pipeline. Limited routing options meant encountering geo-hazard risks, potential harm and disturbance of communities and natural habitat, temporary land acquisition, revenue management and a volatile political environment.
Thus this project received intense scrutiny by stakeholders and press for its lack in humility and effectiveness in resolving political, social, developmental and security concerns.
THE OBJECTIVE/GOALS
Stakeholder map. A visual mapping of parties that affect or about affected by an organization, strategy and in this case a project. Helps us identify the expectations and power of different stakeholders, this understand what ethical issues dilemmas are to be understood and resolved. METHOD / FRAMEWORK FOR ANALYSIS We have chosen a normative approach (what should be done) for our analysis as opposed to a descriptive approach (how it is done).