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BP-Azerbaijan: â€˜We are fully loyal to Azerbaijanâ€™

11 October 2012 08:31 (UTC +04:00)

Baku. Vahab Rzayev â€“ APA-Economics. â€˜We are fully loyal to Azerbaijan and in order to solve the issues connected with Azeri-Chirag-Gunashli extraction in a short time, we are working with SOCARâ€™, Head of BP-Azerbaijan’s foreign relations department Tamam Bayatli told APA.

Note that, this statement was made by Azerbaijanâ€™s President Ilham Aliyev during the meeting of the Cabinet of Ministers on the outcomes of the socio-economic development within 9 months of 2012.

Remind that, the Head of State declared that unexpected recession in oil extraction was caused by the gross mistakes of BP that is leading the consortium on Azeri, Chirag fields: â€˜We have been cooperating with BP for long years. We have always supported their activity. We supported them when they had hard times. We expect an adequate attitude. The wrong forecasts given to us are inadmissible. The false promises given to the State Oil Company are inadmissible. Such relations are impossible in the world business, on this level of business. We have always been fair towards all partners - both in politics and economy. We have always kept our promises. We expect adequate attitude. I think very serious changes must be made regarding this matter. Why do I make public this information today? Because last month BP officially promised me that all those unpleasant cases would be prevented in a short period of time. All these mistakes were admitted. It was admitted that the situation was not satisfactory. I was promised that very serious changes would be made in a short period of time, the working program would be amended, measures would be taken to keep the production on the stable level and what is more the persons who made those gross mistakes would be replaced. Though a month has passed I do not see these promises kept. On the contrary I think they are playing for time. Therefore I consider that it is absolutely inadmissible. The State Oil Company has been instructed to officially raise the issue and take necessary steps. The investors, who fail to fulfill their duties, the terms of the agreement must draw a lesson, serious measures must and will be takenâ€™.

Note that, the President also brought to notice the statistical figures, which prove the reduction of extraction in Azeri and Chirag fields: â€˜In 2009 production forecast for Azeri, Chirag fields was 46.8 million tonnes. Actually, 40.3 tonnes of oil was produced. In 2010 the forecast was 42.1 million tonnes, while actually it was 40.6 million tonnes. In 2011 the forecast was 40.2 million, real production was 36 million tonnes. The forecast for 2012 is 35.6 million tonnes. Taking into account the current production, we can guess that BP will be unable to produce more than 33 million tonnes of oil from Azeri, Chirag fields by the end of the year. Compiling all these figures and considering the price of oil as $100 - though it was higher during all these years - we will see that Azerbaijanâ€™s missed profit is $8.1 billionâ€™.