Deal Signed for Caucasus Pipeline
Three former Soviet republics have signed a contract with the Bechtel construction company and two other firms to build an oil pipeline stretching 500 miles across the Caucasus.
A Bechtel spokesman said the $850-million pipeline will link the city of Grozny, near the Caspian Sea, to Novorossiysk on the Black Sea.
The pipeline will be owned by the former Soviet republics of Russia, Kazakhstan and Azerbaijan as well as the Sultanate of Oman.
Helping Bechtel in the construction of the 42-inch pipeline, which is expected to pump 300,000 barrels a day when it is completed in three years, are British-based Willbros Overseas Ltd. and Bermuda-based Oman Oil Co.
The Bechtel spokesman did not know what percentage of the deal each of the three companies would have, adding that the contract was signed in Bermuda Friday.
Start your day right
Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week.
You may occasionally receive promotional content from the Los Angeles Times.
