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Georgian conflict affects regional oil

BAKU, Azerbaijan, Aug. 13 (UPI) -- Foreign firms contracted to develop the Azeri-Chirag-Gunashli oil field and the Shah Deniz gas field suspended supplies to two pipelines in the Caucasus.

BP Azerbaijan reported oil and gas supplies through the Baku-Supsa oil pipeline in Georgia and the Baku-Tbilisi-Erzurum gas pipeline, or South Caucasus Pipeline, were halted, the Azerbaijan Business Center said Wednesday.

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Conflict between the former Soviet republic of Georgia and Russia interrupted several transportation routes for natural resources from the Caucasus region. A fire erupted on the Turkish section of the Baku-Tbilisi-Ceyhan oil pipeline last week followed by claims Russian fighters bombed the pipeline in Georgia.

"In practice it means reduction of production of oil at (Azeri-Chirag-Gunashli) and gas at Shah Deniz and ceasing of oil and gas pumping into the above-mentioned pipelines," BP Azerbaijan says.

The July oil production from the Azeri-Chirag-Gunashli field dropped because of the conflict. The Baku-Supsa pipeline had carried 150,000 barrels of oil per day, while the South Caucasus Pipeline carried 780 billion cubic feet of natural gas per year.

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