BP, Running With the Hare and Hunting With the Hounds

July 8, 2001 - 0:0
TEHRAN The British oil giant, BP, has for a long time thrown its weight behind the controversial U.S.-backed Baku-Ceyhan pipeline. Despite openly breaching Iran's interests, it is still seeking to explore (or exploit) oil project opportunities in Iran, as acknowledged by its chief executive, Sir John Browne.

"Although BP started a bit later" than other oil companies because it did not want to upset its 40 percent assets in the U.S., "we are still hoping to get some sizable business in Iran," Browne was quoted saying in an interview by the **** Financial Times **** on June 21.

A number of points need to be reminded in this regard:

* In March, Russia and Iran declared their open opposition to the laying of pipelines across the Caspian Sea bed, citing environmental reasons.

* In May 30, Russian presidential envoy Viktor Kaluzhny warned that underwater pipelines across the Caspian could endanger the sea's ecology.

* As acknowledged by all experts, the Iran pipeline is much cheaper than the planned BTC pipeline, backed by the United States.

* The Azeri pipeline to Turkey has already proven to be more expensive that the original estimates. "2,000-kilometer oil pipeline from Baku to Turkey's Mediterranean coast will cost more than expected" David Woodward, BP associate president in Azerbaijan and head of the BP-led Azerbaijan international operating company told Baku's Eighth Annual Oil and Gas Exhibition on June 5.

The political motivations behind the BTC pipeline are crystal clear. Speaking at the same mentioned exhibition, U.S. diplomatic officials reiterated their commitment to the million-barrel-a-day pipeline project.

Ambassador Steven Mann, U.S. special advisor for Caspian Basin Energy Development, said that the new Bush administration was "fully committed" to the pipeline, which it sees as a main part of an East-West energy corridor.

Mann said that Vice President Dick Cheney told him of his "personal interest and unequivocal support" for an East-West corridor, and read a letter from President Bush expressing the administration's backing.

Despite these facts, the NIOC has unfortunately failed to adapt a suitable stance toward this British company.

Last February, BP joined Reliance of India in a partnership with the National Iranian Oil Company (NIOC) to carry out a feasibility study for a liquefied natural gas export plant. This is while previously it decided against joining a consortium study of Iran's Caspian sector.

In the latest development on July 4, Armenia's National Committee announced that a number of American congress members have sent a letter to President George W. Bush requesting Armenia to be a part of the project.

A number of U.S. congressmen had also asked for the passage of this pipeline through Armenia instead of Georgia.

Experts believe that although two years have passed ever since the contract for the construction of this pipeline was signed, the implementation of the project has been delayed due to a number of environmental, technical, security and financial problems.

International support is needed to carry out the project, while no international body has so far shown interest toward investment in the plan.

This, in fact, is considered a major failure for the U.S. in its policies on the Caspian Sea and Caucasian region.