OPIC admits monitoring of BP pipeline project is inadequate

(Bloomberg, London, 6 Feb. 2007) -- BP Plc's $3.9 billion Baku-Tbilisi- Ceyhan pipeline, a link that carries oil from the Caspian Sea to the Mediterranean, needs greater scrutiny to prevent corrosion and leaks, the U.S. Overseas Private Investment Corp. (OPIC) said. OPIC has not enforced a requirement that its independent environmental consultant ``validate'' BTC's ``self- monitoring methodology,'' according to the report. NGOs note that the report avoids the question of whether BTC Co. breached it contract with OPIC, yet it confirms the underlying fact that the company failed to disclose information to the US government about the cracking of the anti-corrosion coating until after its contract for Political Risk Insurance was signed.