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. Last Updated: 07/27/2016

Pipeline Cost Overruns

BAKU, Azerbaijan -- The international consortium developing three major oil fields in Azerbaijan's sector of the Caspian Sea is facing huge cost overruns in building an export pipeline but still plans to complete it early next year.

Robert Erickson, chief operating officer of Azerbaijan International Operating Co., said Friday that the cost of building a pipeline from Baku to Supsa on the Georgian Black Sea has soared to $590 million from an original estimate of $315 million.

The increase follows a decision that rehabilitation of an existing line was not feasible as it had deteriorated too far. Instead huge sections of pipeline on both the Georgian and Azeri sides of the border will have to be replaced.