BTC & SCP Pipeline Projects Azerbaijan

Azerbaijan Where is it?

AZERBAIJAN Some Facts: 86,600 square kilometres (WA 2,500,00 sq km) Of Azerbaijan's 8.3 million people, approximately 90 per cent are Azeri-Turkic Turkic speaking Shi'ite Muslims. The capital city of Baku has almost 2 million people Once part of Persian and acquired by Russia in 1813 Oil discovered in 1873 Supplied 50% of worlds oil at the turn of the last century The Baku oil rigs were there before the rigs in Texas. Azerbaijan's offshore oil fields were first developed by the Americans and then taken over by the Soviets in the 1920 s. Azerbaijan became independent in 1991 In 2003 and 2004 GDP growth surged to about 10% p.a. then about 20% in 2005. Growth is expected to exceed 20 per cent in 2006 due to increased oil and gas exports. Azerbaijan produces about 90% of the world's caviar Oil now accounts for 80 per cent of Azerbaijan's exports

BTC PIPELINE Some Facts: Baku-Tbilisi Tbilisi-Ceyhan (BTC) Pipeline: Crude oil BTC is the 2 nd Longest Pipeline in the World at 1,760 km Oil sourced from the Caspian Sea Azeri-Chirag Chirag-Gunashli oil fields 188 kilometres of undersea pipe laid at depths up to 180 meters deep to transport the extracted oil from an offshore drilling platform m to Sangachal terminal near Baku. The route of the pipeline crosses Azerbaijan and skirts Armenia to pass through Georgia and Turkey. Of its total length of 1,760 km, 440 km lies in Azerbaijan, 244.5 km in Georgia and 1,070 km in Turkey. It crosses several mountain ranges at altitudes of up to 2,830 m. It also has to traverse 3,000 roads, railways and utility lines, both overground and underground, as well as 1,500 watercourses of up to 500 m wide. By 2010 the BTC pipeline is expected reach a peak volume of 1 million barrels per day.

SPC PIPELINE Some Facts: Shah Deniz South Caucas Pipeline (SCP) Pipeline: Natural Gas Caspian Sea which has recoverable reserves of 700 BCM of gas and 300 M tons of condensate Shah Deniz offshore three 90 km pipelines a 26 gas pipeline and a 12 pipeline for condensate, and a 4 4 piggy-backed mono ethylene glycol pipeline SCP is a 685 km 42" diameter lined coated pipeline constructed parallel p to the BTC from Azerbaijan through Georgia to the Turkish-Georgian border, where it connects with the Turkish domestic gas network. 440 km lies in Azerbaijan, 244.5 km in Georgia Capacity of SCP is 160 billion cubic metres of gas per year BOTAS, the Turkish State pipeline company, is constructing a connector pipeline from Erzurum to the Turkish-Georgian border Total SCP project cost estimate is US$ 1.2 Billion

Pipeline Route: BTC

Pipeline Route: SCP

PIPELINE ROUTE MAP

BTC Construction The Sangchal Terminal in Baku has two crude storage tanks, a central control station, metering facilities and a pumping station. Pipeline is 1,070 mm (42 inches) diameter for most of its length,, narrowing to 865 mm (34 inches) diameter as it nears Ceyhan. The Pipeline includes 8 pumping stations, 2 intermediate pigging stations and 101 block valve stations. The Ceyhan Marine terminal has seven crude oil storage tanks, a metering station, wastewater treatment, a vapour incineration facility and d a jetty capable of loading two 300,000dwt tankers simultaneously Total Project Constructed from 150,000 individual joints of line pipe, each measuring 12 m. Total weight of approximately 594,000 Tonnes of steel Construction Started September 2002, Crude filling commenced in May 2005. Total Pipeline completed in July 2006 Employed over 10,000 personnel. Maintenance will require 1,000 personnel. p

BTC Construction: Contracts Azerbaijan: The Greek-based Consolidated Contractors International (CCIC) were awarded a contract for pipelay in Azerbaijan and the construction of the scraper stations ($US229 million), Georgia: The Franco-British Spie Capag / US Petrofac for pipelay in Georgia and also the construction of pumping stations ($US248 million). Additional contracts worth about $1.25 billion were later awarded d in Turkey by BOTAS to 3 pipeline contractors.

BTC ECONOMICS Azeri-Chirag Chirag-Gunashli oil fields estimated to hold over 5 billion barrels of recoverable oil BTC Project value: $US 4 billion Pipeline is Owned: 30%BP, 25% State Oil Co. of Azerbaijan, Unocal, Statoil, Total, Itoshu, remainder. BTC pipeline throughput capacity is about 1 million barrels day of oil. BTC pipeline fill capacity is 10 million barells of oil. BTC pipeline can supply approximately 1% of global demand. Australia consumes about 0.65 million barrels day of oil products s (produces 0.45mbd). million barrels of oil The pipeline will Oil will flow through the pipeline at 2 m per second The cost of transporting oil down the pipeline has been estimated d at $US3.2 per barrel Azerbaijan will earn about $??29 billion per year in oil revenues, while Georgia and Turkey will collect transit fees of $600 million and $1.5 billion respectively per year. the US military's Special Forces trained 1,500 to 2,000 Georgian soldiers in anti-terrorism terrorism techniques under a $64 million program aimed at protecting ting the pipeline against saboteurs

HYDRAULIC PROFILE

Pipelines Design BTC Pipeline: BP Specifications and ASME B31.4 Hydrocarbon Liquids Pipelines SCP Pipeline: BP Specifications and ASME B31.8 Gas Transmission Pipelines Stations and Facilities: BP Specifications and ASME B31.3 Station Piping

Pipelines Design High strength steel: 482 minimum yield strength Wall thickness: 12.7, 14.3, 16.8, 19.1mm Az 12m joints manufactured in Japan (for Az and Georgia). Design pressure 10.0MPa (1,450psi) Internally lined with epoxy Externally coated with a epoxy/hdpe system Buried to a minimum 750mm cover Special design for seismic fault crossings

HYDRAULIC PROFILE

PIPELINE CLEARING

PIPELINE WELDING

CONCRETE COATING TO PIPE

PIPELINE THROUGH RIDGES

TRENCHES

PIPELINE THROUGH WADI s

RIVER CROSSING: EARTHWORKS

PIPE INSTALLATION

ROLLER INSTALLATION: STRING PREPARATION

RIVER CROSSING: PIPE INSTALLATION: BY ROLLER

ROLLER INSTALLATION: FLOAT AND SINK INSTALLATION

PIPE INSTALLATION

HDD CROSSING DESIGN

HDD CROSSING m

HDD RIVER CROSSINGS

CROSSING BY TUNNELLING

TUNNEL CONFIGURATION

WINCH and ANCHOR CONFIGURATION

TUNNEL SHAFT CONFIGURATION

KURRA RIVER CROSSING

RIVER BED EROSION

CROSSING OTHER PIPELINES

PIPELINE TIE-IN IN

STATIONS

MAINLINE VALVE COMPOUND

MAINLINE VALVE RPG PROOF WALLS

Local Accommodation

LOCAL HAZARDS

LOCAL HAULAGE

LOCAL TREATS