BP, StatoilHydro Stop Gas Exports Through South Caucasus Pipe

By Eduard Gismatullin

Aug. 12 (Bloomberg) -- BP Plc and StatoilHydro ASA stopped natural gas exports from Azerbaijan through the South Caucasus pipeline because of security concern in Georgia.

The gas pumping through the link, which crosses Georgia on the way to Turkey, was stopped today, Toby Odone, a London- based spokesman, said by phone. BP also halted crude oil injection into the Baku-Supsa pipeline from Azerbaijan to the Georgian Black Sea coast because of security concern.

Russian President Dmitry Medvedev today ordered a halt to Russia's offensive in Georgia after six days of fighting in the region of South Ossetia and Abkhazia. The conflict raised concern among shippers and traders that crude transportation through Georgia may be disrupted.

The BP-led Baku-Tbilisi-Ceyhan line, which pumps crude from Azerbaijan through Georgia to the Turkish port of Ceyhan, has been shut since last week after an explosion.

Oil is only being transported through the Baku- Novorossiysk link to the Russian Black Sea coast and in rail cars across Georgia to the Black Sea ports, Odone said.

To contact the reporter on this story: Eduard Gismatullin in London at egismatullin@bloomberg.net