This record is a partial extract of the original cable. The full text of the original cable is not available.

C O N F I D E N T I A L ANKARA 000753 
 
SIPDIS 
 
 
STATE FOR E, EB/CBED, EB/ESC, EUR/SE 
STATE PASS NSC FOR QUANRUD AND BRYZA 
USDOC FOR 4212/ITA/MAC/OEURA/CPD/DDEFALCO 
USDOE FOR PUMPHREY/ROSSI 
 
 
E.O. 12958: DECL: 08/08/2012 
TAGS: ENRG ECON EPET AJ GG KZ TU
SUBJECT: BTC UPDATE FROM TURKEY 
 
REF: ANKARA 528 
 
 
Classified by EconCouns Scot Marciel, Reason 1.5 (b,d) 
 
 
¶1. (C) Summary:  BTC construction in Turkey is on schedule 
(first pipe is scheduled to arrive at Iskenderun port on 
February 7) and on budget; however, there is some concern 
that the change in government has slowed down the 
decision-making process on operational issues.  We believe 
that occasional delays are to be expected in a project of 
this size; however, we will meet with GOT officials in the 
next several days to reiterate the importance of operational 
continuity for BTC.  End summary. 
 
 
¶2. (C) Although BTC construction in Turkey is on schedule and 
on budget, BOTAS General Manager Bildaci and Turkey-based BTC 
Co executives are concerned that the change in government has 
slowed down the decision-making process on operational 
issues.  Bildaci and BTC Co officials complained to econoff 
that BOTAS employees and board members are "paralyzed" as 
they wait for the outcome of rumored personnel changes and 
new investigations into past contract awards.  For example, 
Bildaci claimed that the board has delayed voting on hiring 
additional personnel to handle the logistics of land 
acquisition, and BOTAS employees are neglecting important 
BTC-related issues as they investigate claims by the new 
government that BTC Co salaries are too high. 
 
 
¶3. (C) AK Party officials -- from Tayyip Erdogan to Energy 
Minister Guler -- have emphasized their support for the BTC 
project (reftel).  At the same time, however, the new 
government has reportedly taken steps that have caused some 
jitters at the Ministry of Energy (MENR) and BOTAS.  For 
example, the government reportedly wants to investigate all 
past tenders and contract awards made by BOTAS.  A recent 
television news report stated that Energy Minister Guler had 
sent to the President's office for approval a decree 
dismissing the top 50 energy bureaucrats, including the 
Energy Undersecretary and Deputy Undersecretaries, as well as 
the Director General and Deputy Director General of BOTAS, 
TPAO, and other state-owned energy companies.  (Note: 
Neither our MFA or MENR contacts can confirm the existence of 
this decree or who is on it.) 
 
 
¶4. (C) On the positive side, the first pipe for the Turkish 
segment of BTC is scheduled to arrive at Iskenderun port on 
February 7.  For now, BOTAS is planning to receive all pipe 
at Iskenderun; however, it has designated other "contingency" 
ports in the event that regional developments close the 
Iskenderun option. 
 
 
¶5. (C) Local BP executives told econoff that, as of February 
1, BP will increase the risk level for Turkey from "medium" 
to "high."  The next risk level of "very high" could result 
in the evacuation of BP expats from Turkey. 
 
 
¶6. (C) Comment:  As noted, BTC construction in Turkey is on 
track; we believe that current operational delays --although 
not to be ignored -- are one of the to-be-expected hiccups in 
a project of this size.  We will meet with MFA Deputy U/S 
Kilic and Ministry of Energy U/S Yigitguden in the next 
several days to reiterate the importance of operational 
continuity for BTC.  End comment. 
PEARSON