BP remains “committed” to Azerbaijan despite the country’s president accusing the supermajor of making “false promises” and “erroneous forecasts” about production at its plays.
Ilham Aliyev has demanded the British giant take action over its continued
failure to meet production targets which he maintained have left the country’s
coffers $8.1 billion short.
Azerbaijan’s largest foreign investor and operates the largest oilfield in the
country’s sector of the Caspian Sea, Azeri-Chirag-Deepwater Gunashli (ACG), as
well as its largest offshore gas and condensate field, Shah Deniz.
to Azeri news service Trend, at a meeting of cabinet ministers on Wednesday,
Aliyev said: “Oil production began to decline sharply on the Azeri and Chirag
fields due to serious mistakes committed by the consortium over the past few
years. This is not the first year, when oil production decreases.”
that “for some reason” production declined after share distributions in the
projects changed in favour of Azeri investors.
forecast for 2012 is 35.6 million tonnes. Given current production, it can be
assumed that BP will not be able to extract more than 33 million tonnes of oil
from Azeri and Chirag by the end of the year,” Aliyev said.
pointed out that investments such as those made by BP had made Azerbaijan “one
of the fastest growing countries in the world,” he warned: “Investments have no
“This is a
specific business project. Up to now, the BP-led consortium invested $28.7
billion in the Azeri and Chirag oilfields and made revenue of $73 billion. So,
quite big profit has been made,” he contended.
that all promises and presented forecasts should be fulfilled. I should note
that this unexpected drop occurred only due to harsh mistakes by BP, which
leads the consortium that operates the Azeri and Chirag fields,” the president
cooperated with BP for many years. At all times we have supported their
activity. We supported them in their most difficult days. We expected adequate
treatment. These erroneous forecasts given to us are unacceptable. The false
promises given to the State Oil Company [Socar] are unacceptable. In the
business world, there is no place for such relationship, it is impossible.”
alleged that these “mistakes” were “admitted” by BP which also promised that
“significant changes” would be made, including holding those responsible for
the issues to account.
month has passed from that time, but I do not see the implementation of these
commitments,” he continued.
BP issued a
one-line statement in response to a request for comment on the issue, saying: "We are fully committed to
Azerbaijan. We are working with Socar to address Azeri Chirag Gunashli (ACG)
production issues as quickly as possible."