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Some Common Concerns: Imagining Some Common Concerns 23/8/02 9:39 am Page b SOME COMMON CONCERNS Imagining BP’s Azerbaijan-Georgia-Turkey Pipelines System Some Common Concerns 23/8/02 9:39 am Page ii “Who speaks, under what conditions, and for whom?” Henry A Giroux, Living Dangerously: Multiculturalism and the Politics of Difference.1 Some Common Concerns 23/8/02 9:39 am Page iv PLATFORM is a London-based organisation which aims to promote processes of Campagna per la Riforma della Banca Mondiale is a Rome-based democratic engagement to advance social and ecological justice. coalition of 41 Italian development NGOs, environmental associations and human right groups working to reform international financial institutions and Italian investment public and private agencies in order to promote environmentally and socially sustainable investment in solidarity with PLATFORM local communities affected by projects and investment worldwide. 7 Horselydown Lane London SE1 2LN UK Campagna per la Riforma della Banca Mondiale Via Tommaso da Celano, 15 Tel / Fax: +44 (0)20 7403 3738 00179 Roma, Italia Email: [email protected] Tel: +39 06 78 26 855 Fax: +39 06 78 58 100 Website: www.crbm.org The Corner House is a research and solidarity group focusing on human Email: [email protected] rights, environment and development. The Corner House Station Road CEE Bankwatch Network is an association of non-governmental and Sturminster Newton non-profit civic organisations from Central and Eastern European Dorset DT10 1YJ UK countries, whose mission is to prevent environmentally and socially harmful impacts of international development finance, and to promote alternative solutions and public participation. Tel: +44 (0)1258 473795 Fax: +44 (0)1258 473748 Website: http://cornerhouse.icaap.org/ CEE Bankwatch Network Email: [email protected] Kratka 26, 100 00 Praha 10 Czech Republic Friends of the Earth International is a federation of autonomous Website: www.bankwatch.org environmental organizations from all over the world. Our members, Email : [email protected] in 66 countries, campaign on the most urgent environmental and social issues of our day, while simultaneously catalyzing a shift toward sustainable societies. The Kurdish Human Rights Project is an independent, non-political Friends of the Earth International organisation, committed to the protection of the human rights of all Secretariat, PO Box 19199 persons within Kurdish regions, irrespective of race, religion, sex, 1000 GD Amsterdam political persuasion or other belief or opinion. Its supporters include The Netherlands both Kurdish and non-Kurdish people. Kurdish Human Rights Project (KHRP) Tel: +31 20 622 1369 162-168 Regent Street Fax: +31 20 639 2181 Suite 319 Website: http://www.foei.org/ London W1B 5TG UK Email: [email protected] Tel: +44 (0)207 287 2772 Fax: +44 (0)207 734 4927 Website: www.khrp.org E-mail: [email protected] Some Common Concerns 23/8/02 9:39 am Page vi Published by: CONTENTS Campagna per la Riforma della Banca Mondiale, CEE Bankwatch Network, The Corner House, Friends of the Earth International,The Kurdish Human Rights Project and PLATFORM PART I: INTRODUCTION 1: The leaflet from the Caspian Sea. 3 Written and researched by: 2: The pipeline in the imagination . 9 Greg Muttitt and James Marriott of PLATFORM PART II: PRE-CONSTRUCTION With material by: 3: Four governments unite . 18 Sally Eberhardt of the Kurdish Human Rights Project 4: Tw o companies merge . 34 Kate Hampton of Friends of the Earth International Nicholas Hildyard of The Corner House TIMELINE FOR A PIPELINE Manana Kochladze of Green Alternative PRODUCTION SHARING AGREEMENTS: MAI BY THE BACK DOOR?. 41 Saulius Piksrys of CEE Bankwatch Network Antonio Tricarico of La Campagna per la Riforma della Banca Mondiale 5: Faces and names . 43 Carol Welch of Friends of the Earth (USA) 6: The carbon web . 51 7: The tale of three pipelines . 59 Editing by: 8: Neutron John. 62 Sarah Sexton of The Corner House OIL FUNDS: SHARING THE WEALTH . 77 Designed by: the Argument by Design PART III: CONSTRUCTION 9: How 12 metres became 200 metres. 81 With thanks to the following for their invaluable comments: 10: Building big, building fast . 90 Michael Gillard, Dan Gretton, Andrew Higginbottom, Melissa Jones, Larry Lohmann, Jake Molloy, Nick Robins, Andrew Rowell, Ian Rutledge, Jane Trowell CORRUPTION ALLEGATIONS AND OIL DEVELOPMENT IN THE CASPIAN REGION . 103 and David Whyte PART IV: OPERATION Thanks also to: 11: Line of fire . 107 Miriam Carrión Benítez, Xanthe Bevis, Pallab Chatterjee, Karen Decker, Koray 12: The sound of silence. 123 Duzgoren, Kate Geary, Nino Gujaraidze, Petr Hlobil, Anders Lustgarten, George 13: The lethal machine . 137 Marshall, Phil Michaels, Bahar Ocal, Julie Tanner,Yuri Urbansky and Kerim Yildiz WILL OIL BRING PROSPERITY? “DUTCH DISEASE” AND EXTRACTIVE ECONOMIES’ . 151 Printed by: Abbey Print, Spalding, Lincolnshire PART V: POST-OPERATION 14: The century ahead . 155 Artwork: All maps generated using Mountain High Maps ® Copyright © 1993 Digital PART VI: CONCLUSION Wisdom, Inc. except City of London map. 15: Imagining the AGT pipelines system . 165 16: Our common concerns . 183 Cover picture: the Chirag-1 oil rig, in the Caspian sea. (G Ruschendorf /Rapho/Network) REFERENCES . 184 Some Common Concerns 23/8/02 9:39 am Page viii PART 1 INTRODUCTION Some Common Concerns 23/8/02 9:39 am Page 2 Some Common Concerns Chapter 1 The leaflet from the Caspian Sea INETY WORDS.A mere 90 words of BP’s Azerbaijan consultation leaflet, reprinted opposite, describe what is planned for the Azerbaijan- NGeorgia-Turkey (AGT) pipelines system: The project is planning to build two pipelines (one oil and one gas) from terminals near the Caspian Sea, through Azerbaijan, Georgia and Turkey.The pipelines will be located side by side, largely along a route common to the existing Western Route Export Pipeline. During the construction supporting infrastructure will be required in the form of pipe yards (for the equipment), and camps for the construction workers.Although actual locations have not been finalised, these leaflets are being distributed in areas that may prove suitable. Ninety words, yet if the AGT pipelines system goes ahead as planned, it would be a vast social and industrial structure, a gathering of men, women and machines stretching 1,750 kilometres (1,087 miles) across hills and valleys, mountains and plains, fields and deserts, gardens and rivers. A complete system, running from the Azerbaijani oil and gas fields offshore in the Caspian Sea to a tanker terminal on the Turkish Mediterranean coast. A system that would include both the Baku-Tbilisi- Ceyhan (BTC) oil pipeline and the South Caucasus (gas) Pipeline (SCP).a A system that would remain in place for at least 40 years.b A system through which would flow US$ 21 million worth of fuel every day,c nearly $8 billion a year. aAlso known as the Shah Deniz pipeline, or the Baku-Tbilisi-Erzurum pipeline. b The Production Sharing Agreement for the Azerbaijani-Chirag-Guneshli oilfields lasts 30 years, but the Host Government Agreement for (the Georgian section of) the Baku-Tbilisi-Ceyhan pipeline lasts 40 years. c The pipelines are intended to carry one million barrels a day of oil and at least 20 million cubic metres of gas. At average prices of US$ 20 / barrel of oil and $60 / thousand cubic metres of gas, the daily Leaflet distributed in Azerbaijan in 2001 by ERM on behalf of BP. flow is valued at $21 million 2 3 Some Common Concerns 23/8/02 9:39 am Page 4 Some Common Concerns The leaflet from the Caspian Sea This vast project of almost English, this leaflet has been distributed to communities along the Azerbaijan section unimaginable capital value is the of the proposed route of the pipelines. Other leaflets have been, or are being, proposed outcome of over a decade produced for Georgiad and Turkey. of activity, by a complex web of individuals and institutions stretching What would be the impact of the pipelines system on those who live on or near its across at least three continents. Since route? What would be its environmental impact, both locally and globally? the early 1990s, the pipeline has been developed through discussion between managers of BP Exploration Consultation (Azerbaijan) in Baku; of its parent LTHOUGH the A4 leaflet is in BP’s name, it has been produced and handed company, BP plc, in London; of out to local communities not by employees of BP, but by those of another partner oil companies in Azerbaijan Acompany: Environmental Resource Management (ERM), a consultancy based and their home countries; and of in Cavendish Square, in central London. In May 2000, ERM won a contract from BP financial institutions in London, New to conduct the Social Impact Assessment studies for the entire 1,750 kilometres York and Washington, DC; and (1,087 miles) of the Azerbaijan-Georgia-Turkey pipelines system, plus the government officials in Baku,Tbilisi, Environmental Impact Assessment for the Turkish section. Ankara, Almaty,Ashkabad, London Headquarters of ERM, London and Washington. (Pallab Chatterjee, Friends of the Earth) Environmental and Social Impact Assessments, known in the industrial development world as ESIAs, are standard practice. Any company wishing to build a pipeline, a If it is built, this pipeline system, which is intended to be the major export route for dam, a major road or the like, is required to conduct such studies in advance – Caspian oil and gas to the West, would have an international strategic role well into especially if it is hoping to gain financial support from public funds, such as those the middle of the 21st century. But it was not until eight years after the pipeline provided by the World Bank or a national government. ERM is a leader in the field of system was first conceived that discussions began with people living along the consultancies which do such work.
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