"Hayward's visit to Baku shows that BP is not going to sell its assets in Azerbaijan"

Prior to BP CEO Tony Hayward’s trip to Baku, rumors had it that the company was going to sell its share in energy projects in Azerbaijan...

It seems that BP CEO’s visit to Azerbaijan was some kind of demonstration that the company has no intention to sell its assets in our country. Not accidentally, I think, a document that will a major basis for a future PSA contract to develop "Shafag" and "Asiman"prospective fields in the Azerbaijani sector of the Caspian Sea was signed with SOCAR exactly during Hayward’s Baku visit. If BP really wanted to sell its assets in Azerbaijan, it would not have signed a contract with SOCAR on major commercial principles on a new contract area. A new future contract is, first and foremost, investment by BP.

BP assets in Azerbaijan are quite expensive, and now oil and gas projects are under rapid development. Selling BP shares in Azerbaijan in order to direct the proceeds to address problems in the Gulf of Mexico would further impact prices of BP shares which already dropped by nearly half since the beginning of oil spill in the Gulf of Mexico. BP would never take such a step.

When in Baku, Tony Hayward said that BP will continue to fulfill its obligations in Azerbaijan, stressed importance of energy and export projects and added that the company is a proponent of big investments in Azerbaijani economy. All this actually means that BP has no plans to sell shares in the country and will continue to work here. Moreover, Hayward said geological prospecting in the Caspian Sea is important for the region's energy future, which points to company's plans on "Shafag" and "Asiman”projects not to mention an interest in other prospective fields in the Azerbaijani sector of the Caspian Sea.

Some time ago Gazprom CEO announced his interest to buy BP share in Azerbaijan’s “Shah Deniz” gas project. How can you comment on this?

Indeed, Alexei Miller said that Gazprom would be interested to buy BP’s share in "Shah Deniz" mega-project also adding that Gazprom has not received such a request yet. BP does not seem to plan to sell its stake in “Shah Deniz.”

The world gas market was not so interesting for potential investors 10 to 15 years ago. Amid rising energy consumption, data on reduction of proven oil reserves, namely the gas market has moved forward in recent years despite struggle for environment and the global crisis. And Azerbaijan’s "Shah Deniz" project can make a considerable contribution to the global gas market.in the second stage of its development. 
 
I do not think that BP will sell its significant share in the “Shah Deniz” field even against the background of problems in the Gulf of Mexico. BP CEO said in Baku that the project on full-scale development of this field is one of the most important for BP, and the company as the project operator will implement it at an accelerated pace.

Hayward mentioned said full-scale development which refers to the first and second stage of field development, and the phrase "at accelerated pace” indicates a desire to implement the project earlier than 2016-2017. It once again indicates that the company has no plans to sell anything, but rather to invest in projects in Azerbaijan.

It seems more and more countries have announced willingness to buy Azerbaijan’s natural gas recently...

Right. A package of gas agreements Azerbaijan and Turkey signed in June enables our country to directly sell its own gas to the European countries, as well as to provide its territory for transit of natural gas, for example, from Turkmenistan to the European Union.

Incidentally, the Italian company Eni has already suggested SOCAR to participate in transportation of 8.6 billion cubic meters of gas from Turkmenistan through the territory of our country. The project envisages the transportation of compressed gas to Baku across the Caspian Sea by ships.

As for the Azerbaijani gas, there are proposals from many different countries. For example, Greece intends to buy Azerbaijani gas, Syria has stated it may import 1-1.5 billion cubic meters of gas a year, a large French company GDF Suez is considering the purchase of Azerbaijani gas, in particular, in the second phase of “Shah Deniz” field, although this company is involved in a project to develop Azerbaijan's promising "Absheron" field.

Moreover, Swiss EGL intends to increase its gas portfolio through Azerbaijani gas and the company registered its office in Baku recently for this purpose. EGL has already stated that the gas from Azerbaijan is an ideal complement to the company’s procurement portfolio. The long-term goal of this company is transportation of gas from “Shah Deniz” through Trans-Adriatic pipeline to Italy where it will be used as fuel to generate electricity.


/Day.Az/