Menu
Latest
Menu
Latest
Commentary

The end of a love affair? President Aliev has blamed BP for declining oil production, criticising for the first time the oil giant.

11 October 2012

The President of Azerbaijan Ilham Aliyev has blamed an international consortium led by BP for the sharp decline in oil output on the Azeri and Chirag fields in the Azerbaijani sector of the Caspian Sea.

Speaking at a session of the Cabinet of Ministers of Azerbaijan that was considering the results of socioeconomic development of the country over the first nine months of this year the President said that the consortium does not fulfill its forecasts on oil production, adding that the decrease in production started after 2008 when in line with the contract, the volumes of distributed revenues from oil production changed in Azerbaijan’s favor and became 75 to 25. Thus, according to Ilham Aliyev, the output forecast in 2009 was 46,800,000 tonnes, while in fact only 40,300,000 tonnes were produced. In turn, the forecast in 2010 was 42,100,000 tonnes, while the actual production volume was  40,600,000 tonnes. A similar situation was observed in 2011: 40,200,000 tonnes were predicted and the real production made was just 36,000,000 tonnes. According to the President, 33,000,000 tonnes will be producted in 2012 whilst the forecast was 35,600,000 tonnes.

According to President Aliyev, Azerbaijan did not receive the revenues  it was expoecting. At the same time the Azerbaijani leader recalled that whilst investing $28,700,000,000 to the fields development, the consortium has already received a revenue of $73bn.

“The promises and forecasts must be fulfilled”,  Aliev said, blaming BP of mistakes.  Aliev said that BP had promised to rectify its mistakes  and  dismiss the employees responsible for them  but these promises had not been fulfilled. The president said that the Azerbaijani Oil Company  SOCAR has already been given instruction to raise this issue officially and take necessary measures. “Series measures will be taken”, Aliev said.

Commonspace.eu political editor said that this is the first time the Azerbaijani leader has publicly criticised BP which has been Azerbaijan's strategic partner in developing its energy resources over the last two decades. It is not yet clear if this is the end of a love affair, but certainly the language used by Aliev is tough and indicate a serious dispute is going on.

source: commonspace.eu

photo: Aerial map of the Caspian Sea.

Related articles

Editor's choice
News
Uzbekistan calls for bigger voice for Central Asia in the UN
Trending

Uzbekistan calls for bigger voice for Central Asia in the UN

26 September 2026
Uzbekistan called for a more effective and representative United Nations on September 23, as presidential administration chief Saida Mirziyoyeva used her address to the UN General Assembly to seek support for the country’s candidacy for a nonpermanent Security Council seat in 2035–2036. Speaking at the Assembly’s 81st session in New York, Mirziyoyeva argued that international cooperation remains necessary despite growing geopolitical divisions. She endorsed UN Secretary-General António Guterres’ UN80 reform initiative and called for an expanded Security Council, arguing that international rules should be applied consistently rather than according to the interests of powerful states. Uzbekistan’s planned chairmanship of the Non-Aligned Movement in 2027 was presented as another platform for promoting dialogue. Her emphasis on multilateralism also fits a broader Central Asian effort to increase the region’s role in international institutions. Kyrgyzstan, for example, will hold its first Security Council seat in 2027–2028. Mirziyoyeva also highlighted regional cooperation, pointing to improved relations among Central Asian states over longstanding border and water disputes. On Afghanistan, she urged countries not to view it solely as a security threat, stressing the importance of creating conditions for peaceful development. She linked Uzbekistan’s international agenda to domestic reforms, citing economic growth, falling poverty and expanded education. Climate and water security also featured prominently, with the Aral Sea serving as an example of the consequences of poor environmental management. (click image to read more)

Popular

Editor's choice
Interview
Thursday Interview: Murad Muradov
Trending

Thursday Interview: Murad Muradov

15 January 2026
Today, commonspace.eu starts a new regular weekly series. THURSDAY INTERVIEW, conducted by Lauri Nikulainen, will host  persons who are thinkers, opinion shapers, and implementors in their countries and spheres. We start the series with an interview with Murad Muradov, a leading person in Azerbaijan's think tank community. He is also the first co-chair of the Action Committee for a new Armenian-Azerbaijani Dialogue. Last September he made history by being the first Azerbaijani civil society activist to visit Armenia after the 44 day war, and the start of the peace process. Speaking about this visit Murad Muradov said: "My experience was largely positive. My negative expectations luckily didn’t play out. The discussions were respectful, the panel format bringing together experts from Armenia, Azerbaijan, and Turkey was particularly valuable during the NATO Rose-Roth Seminar in Yerevan, and media coverage, while varied in tone, remained largely constructive. Some media outlets though attempted to represent me as more of a government mouthpiece than an independent expert, which was totally misleading.  Overall, I see these initiatives as important steps in rebuilding trust and normalising professional engagement. The fact that soon a larger Azerbaijani civil society visits to Armenia followed, reinforces the sense that this process is moving in the right direction." (click the image to read the interview in full)
Murad Muradov
Lauri Nikulainen interviews Murad Muradov