A fire on the Baku-Tbilisi-Ceyhan oil pipeline has wound up benefiting Russia, the nation the pipeline was meant to avoid. (With Stratfor map)
Fires burned for a second day Aug. 7 at an eastern section of the Turkish part of the Baku-Tbilisi-Ceyhan (BTC) pipeline after an alleged technical failure that might actually have been sabotage. Oil supermajor BP — the pipeline’s biggest stakeholder with a 30.1 percent share — has claimed force majeure on contracts, satisfied with oil that transists the pipeline, which has a capacity of 850,000 to 1 million barrels per day (bpd). Experts think the fire will burn for two more days, and that repairs to the pipeline could take anywhere from two to five weeks.
In the face of this setback, BP has begun considering alternative routes for the oil shipments. None of these alternatives is optimal, and one — sending the oil through Russia — would defeat the main purpose of BTC, which was built to avoid politically complicated Russia.