Support The Moscow Times!

Azeri President Lashes Out at BP

BAKU/LONDON — Azerbaijan accused BP of making "false promises" on oil output and said the state had missed out on $8 billion of potential revenues from what is one of the company's biggest projects in the world.

President Ilham Aliyev said he would take "serious measures" — threatening a third battle front for BP as it seeks a settlement over its Macondo oil spill in the United States and is struggling over the fate of its $25 billion Russian venture.

"Azerbaijan has not received $8.1 billion in revenues," Aliyev told his government on Wednesday, accusing BP of "grave mistakes" in planning oil output at the Azeri-Chirag-Guneshli, or ACG, fields in the past few years.

"It is absolutely unacceptable … Investors who cannot stick to their obligations and contract terms must learn lessons. Serious measures must and will be taken," Aliyev said, according to a text posted on his website.

Aliyev said the ACG consortium had invested $28.7 billion in Azerbaijan since the 1990s and received revenues of $73 billion.

"Last month BP officially promised to me to fix these negative developments as soon as possible … and more importantly, replace people who made those grave mistakes. A month has passed and I don't see those promises being fulfilled," Aliyev said.

Related articles:

Read more

Independent journalism isn’t dead. You can help keep it alive.

As the only remaining independent, English-language news source reporting from Russia, The Moscow Times plays a critical role in connecting Russia to the world.

Editorial decisions are made entirely by journalists in our newsroom, who adhere to the highest ethical standards. We fearlessly cover issues that are often considered off-limits or taboo in Russia, from domestic violence and LGBT issues to the climate crisis and a secretive nuclear blast that exposed unknowing doctors to radiation.

As we approach the holiday season, please consider making a one-time donation — or better still a recurring donation — to The Moscow Times to help us continue producing vital, high-quality journalism about the world’s largest country.