Speaking Out

David Winter: Engineering for people

As you read this, crude oil from the Caspian Sea basin is making its way across Azerbaijan, Georgia and Turkey through the newly-built 1,768km Baku-Tbilisi-Ceyhan (BTC) pipeline. Within a matter of weeks – and less than three-and-a-half years since the partner group sanctioned the construction phase of the project - the oil will arrive at the Ceyhan terminal on the Turkish Mediterranean coast, ready for transportation to world markets. David Winter has been involved with the project since the planning stage, as Technical Compliance and Health & Safety Manager and a member of the Core Management Team. In July of this year he moved from Baku to Ankara to assist with the final completion phase of the project in the capacity of BTC Project Manager Turkey. We asked him to comment on the achievements of the project and their significance for us all.

The Baku-Tbilisi-Ceyhan pipeline is the first major energy project of the twenty-first century. Initially, it aims to meet just a small fraction of the demand for oil in world markets – albeit enough to justify the technical feasibility. For the countries concerned, the results are very meaningful:

- The association of the three neighbouring countries creates an environment of cooperation and solidarity in every area.

- The project makes a direct contribution to the economies of these countries in the form of transport and operation fees.

- The project also boosts the welfare of local people through the investments made, the use of local firms, the employment of local workers and the local purchase of goods and services.

- The social, environmental, health and safety investments will provide additional benefits to the region. The most important characteristic of these projects is that they have long-term sustainability. Let us not forget that we plan and desire to be neighbours with the local people from any years to come as a result of this BTC project.

Of course, I cannot fail to underline the strategic importance of the project for Turkey in particular. Istanbul is one of the most beautiful cities in the world and currently struggles with a heavy traffic of tankers. As a continuous and reliable transport alternative with a capacity of 50m tons/year, the BTC Project will keep about 360 tankers a year away from the Straits traffic.

The size of the challenge

Negotiating host and intergovernmental agreements and putting in place the financial agreements and negotiating contracts was not easy. However, the implementation of the engineering and construction works was perhaps even more challenging.

Onshore pipelining is recognised as one of the most hazardous of all construction activities. During the construction of BTC, we have had to face up to, manage and mitigate issues relating to health and safety, to communicate with a workforce involving 30 different nationalities, to overcome infrastructure difficulties, to work and install pipe at heights in excess of 2,300 metres and in extremes of temperatures ranging from -40˚C to +40˚C, to install the pipeline under major rivers, and to deal with seismic engineering and construction issues.  The project crosses 1,500 watercourses, and 3,000 roads, railways and utility lines. It has driven over 200m km moving pipe, materials, equipment and people.

Man-hours worked are expected to reach 110m at project completion. Turkey accounts for 52m of the total number of man-hours worked to date. In the most active period of the work, the number of personnel employed in the Turkish section of the project reached 12,000. Across the three countries which the pipeline traverses - Azerbaijan, Georgia and Turkey – we had 21,000 people working at the peak of construction.

We have maximised the number of unskilled or semi-skilled workers from the local people. Today, we can proudly say that all these personnel have been given all kinds of training in their areas of work and many of them have learned a trade.

Health and safety

The BTC project aimed to make a step change in the areas of health, safety and protection of the environment. The goal, simply stated, was “No accidents, no harm to people and no damage to environment”. Participants were trained long before site work commenced. We provided 868,097 hours of health and safety training and assessed operators and drivers before they drove vehicles or operated machinery. We adopted the highest standards for equipment, plant and vehicles, employed risk-reducing technologies such as vacuum lifting, and transported pipes by rail instead of road. In the BTC Turkey project, the frequency of days away from work was four times better than the rate achieved by the International Pipeline and Offshore Contractors Association.

Driving safety training was given to more then 5,000 drivers. Night driving was ruled out, speed limits were reduced, seat-belt use was enforced and a zero tolerance policy was implemented for alcohol and drugs. In 130m km of driving in BTC Turkey, there were 182 road traffic accidents.

Our health and safety know-how has been shared and will continue to be shared with public bodies, communities along the pipeline route and the general public. For example, an interactive video-based community safety awareness programme is about to be launched in Turkish primary schools, and the project’s STD/HIV awareness programme is being disseminated widely. The health and safety programme will continue throughout the operation of the Pipeline.

Security and human rights

Security is primarily the responsibility of host governments. At the same time, the route was directed as far away as possible from areas with known security concerns. The pipeline and related facilities were designed to facilitate protection and surveillance. Risk assessments have been carried out routinely. All people associated with the project have been briefed on security, and on the local culture and traditions. Unarmed guards from local communities protect manned facilities. Security performance is periodically audited by external assessors.

Simultaneously, efforts have been made to ensure respect for human rights and ethical police and military behaviour. The Joint Statement signed by BTC Co and the three host governments in May 2003, emphasising their determination to make the BTC project a model in all respects, made the Voluntary Principles on Security and Human Rights part of the law governing the BTC project. To our knowledge, this is a first. The principles – which were launched by the UK and US governments, NGOs and major extractive industry companies in December 2000 - envisage risk assessments, the reporting of allegations, and human rights training and education. Support has been given to a human rights based theoretical and practical training programme led by Geneva-based Equity International.

Protecting the environment

The pipeline will be safe, silent and unseen. Before any construction work began, an Environmental Impact Assessment was carried out which gathered more than 11,000 pages of information on geological, biological, cultural and social factors over a 500 metre-wide corridor following the whole of the proposed pipeline route. The findings of this study led to refinement of the route and fed into measures to mitigate environmental and social impacts.

The route passes through about 500 settlements, some in economically disadvantaged regions, and areas of great biological importance. For example, 44 of Turkey’s 158 globally threatened plant species occur within the corridor. Besides construction-related mitigation measures, BTC Co formed working partnerships with NGOs, universities, consultancies and local communities to implement a series of Community and Environmental Investment Programmes, with their own staff and budgets (a total of US$12.3m for Turkey). Community investment projects include school and well repairs, waste management and recycling projects, educational activities and longer-term sustainable rural development projects. Environmental projects are studying ecosystems and endangered species and making plans for their conservation and management.

A joint effort

Schedule and cost over-runs are always a possibility with mega projects such as BTC. Many factors come into play from changes in governments to unexpected construction delays due to unforeseen extremes of weather. BTC has experienced these and a number of other unforeseen problems. However, the consequent slippage to schedule completion and resultant cost increase is comparable with industry benchmarked norms for such overruns. The project is deemed to be a success.

This project is above all the product of a joint effort and commitment. Credit goes to all the parties who conceived the BTC project as an idea, who studied its feasibility and believed in it, supported the project and committed themselves to it. Special mention must be made of:

- the countries in which the pipeline route is located, namely Azerbaijan, Georgia, and Turkey;

- the Main Export Pipeline Participants, who made an early commitment to participate in the project, supported it, played an important role in the making of the agreements, and signed them;

- the partners in the BTC Company, consisting of the eleven companies that committed the investment (BP, SOCAR, Unocal, Statoil, TPAO, Eni, Total, Itochu, Inpex, ConocoPhillips and Amerada Hess), and the operating partner BP, which has shown patience and skill, faithfully implementing its golden principles and its concept of health, safety and security, with all the importance it attaches to these issues;

- the lenders, the international finance institutions including organisations such as the EBRD and the IFC. Here, we are talking about some 208 documents and 17,000 signatures, and

- the non-governmental organizations, which have been of great help with their guiding wishes and criticisms in the prevention and/or minimisation of damage to the environment, people and property during the execution of the project and in the implementation of international projects.

Lessons for the future

An important feature of this project is the association of the government and the private sector, and the different dimension this gives to relations. We have conducted this work hand in hand with the authorised units and officials of the State at every level and with the local people in more than 300 settlements in the ten provinces through which the pipeline passes. The State institutions have given us full support. We have learned much from them. The project has taught us that one can achieve everything if one wants it and commits oneself.

We have learned not to make mistakes in regional development, to pay attention to the values of the community, and the responsibilities of living close with the local people. We have seen that one must believe in people and that a correct investment to be made for them does not go unreturned. In addition, this project has awakened in us the excitement for watching developments and generating and implementing projects where needed by acting wisely and with concern.

For me personally, there have been many memorable moments. Just being part of such a great project is in its self memorable. I have seen achievements beyond my wildest dreams in the areas of health and safety, environmental compliance, the delivery of outstanding social commitments – and, above all, the sheer dedication of all those who have played a part in delivering this monumental project.

Course of history

Dig a hole anywhere in Turkey and you stand a reasonable chance of meeting archaeological remains. Lay 1,074 km of pipeline and you are sure to do so. Prior to the commencement of work on the Turkish section of the Baku-Tbilisi-Ceyhan crude oil pipeline, all known historical and archaeological sites were mapped out, and research was carried out to try to identify previously unknown sites. As a result, the exact route of the pipeline was altered in hundreds of places, a series of archaeological excavations were undertaken, and a large number of objects were presented to local museums.

Initial surveys were done by researchers from three Ankara universities: Ankara, Middle East Technical and Gazi. In February 2003, the Archaeology Environment Properties Research Centre (ARÇED) of Gazi University was selected to undertake excavations.

All the work was done in accordance with agreements between the Turkish state pipeline company BOTAŞ (the chief contractor for the Turkish section of the line), the Ministry of Culture and the Centre. It was governed by all relevant international standards and conventions and guided by the Cultural Heritage Management Plan which formed part of the Environmental Impact Assessment for the BTC project.

Rock-graves and cults

In 2003 and 2004, some thirty academics and 125 archaeologists, historians, anthropologists, sociologists, geographers, art historians, philologists, restorers and curators were involved in the ARÇED operation, together with around 1,000 workers. Seventeen archaeological salvage excavations were undertaken in Ardahan, Kars, Erzurum, Erzincan, Sivas, Kahramanmaraş and Adana provinces, bringing to light archaeological and cultural properties dating from the bronze and iron ages, the classical and Byzantine eras, the Mıddle Ages and the recent past.

Most of the sites excavated within the scope of BTC Project yielded archaeologically significant results. A Hellenistic-Roman rock-cut burial ground was unearthed at Yüceören in Adana, a 3rd-4th century bath-house came to light at Kayranlikgözü in Kahramanmaraş, and a late Hellenistic/early Roman settlement and artefacts were discovered at Ziyaretsuyu in Sivas. At Sazpegler in Ardahan, on Turkey’s eastern border, an area where hardly any archaeological work had previously been carried out, researchers encountered the remains of a medieval village. Several iron age sites were excavated, mainly in the provinces of Erzurum and Erzincan. Animal graves discovered at Büyükardıç in Erzincan suggest an ancient place of sacrifice or other religious ceremonies. (See also www.arced.gazi.edu.tr)

(DIPLOMAT  -  November 2005  -  Ankara)