Derr sees no need yet for Baku-Ceyhan line
Chevron, the largest producer of Caspian crude, said there won't be enough oil found during the next several years in
the Caspian Sea region to support building a pipeline from Azerbaijan to Turkey.
The 1,080-mile pipeline, strongly favoured by the U.S. and Turkish governments, would carry oil from the Azerbaijan capital of Baku to the Turkish port of Ceyhan on the Mediterranean. The pipeline's estimated cost approaches $ 4 billion.
"I'm all for a Baku-to-Ceyhan pipeline, but we don't need it right now," Kenneth Derr, Chevron's chairman and CEO, told. "There is not just enough production."
Derr said two other planned pipelines that would ship oil through separate ports on the Black Sea "will provide adequate capacity for the oil production for quite a few years."
Once new oil production in the region exceeds 1 million bpd, he said it would "make sense" to build a pipeline through Turkey. "We would ultimately like several pipelines going in different directions," Derr said.