bp invests $84bn in Azerbaijani economy, encourages alternative energy development

By Azernews

By Ayya Lmahamad

bp has invested $84 billion in the Azerbaijani economy, Executive Vice President for Production and Operations Gordon Birrell has said at the 27th Baku Energy Forum, Azernews reports.

Emphasizing that bp will continue to support Azerbaijan in the development of oil and gas projects, Birrell recalled that this year marks the 30th anniversary of cooperation and investment.

“Such a long period speaks of the stability of the country's economy. I would like to note that we have invested in projects such as Baku–Tbilisi–Ceyhan pipeline (BTC), Shah Deniz oilfield, and a number of others,” he said.

He noted that the factor that serves to ensure the stability of investment in the Azerbaijani economy is the fact that the country's energy infrastructure is developing, extraction of oil and gas resources is permanent, and large-scale projects are being implemented to transit to ‘green’ energy.

“We plan to reduce investments in the energy sector by up to 50 percent and increase them in the sphere of green energy by 2030,” he added.

Moreover, bp's Regional President for Azerbaijan, Georgia and Turkey Gary Jones stated that it is planned to increase gas exports through the Trans-Anatolian gas pipeline (TANAP) to 27 billion cubic meters per year, of which 9 billion cubic meters go to Italy.

He added that the work is underway to expand gas sources and increase production from existing ones.

"The role of the Southern Gas Corridor will also grow, exports will be increased, and to achieve these goals, work is underway to attract financial institutions and related investments," he said.

Noting that work is underway to build solar stations in Azerbaijan and in particular in the country's Karabakh region, Gary Jones mentioned that the implementation of these projects in Azerbaijan will reduce gas consumption.

"In addition, Azerbaijan has a huge wind potential in the Caspian Sea to generate clean energy, which can also be exported," he said.

He also added that a comprehensive solution to issues on the energy agenda is being carried out in Azerbaijan.

Speaking at the forum, bp's Vice President for Finance Niall Henderson stated that Azerbaijan is able to compete in the renewable energy sector at the global level.

"Azerbaijan can create a flexible smart and digital energy system that integrates renewable energy sources into thermal power and transport," he said.

Henderson also noted that solar and wind energy, landfill gas, geothermal energy, hydrogen-based charging stations, also ultra-fast charging stations can be developed in Azerbaijan and brought to the global level of competition.

He added that the energy transition gives Azerbaijan the opportunity to become fully self-sufficient in the production and supply of its own energy.

"Azerbaijan can decarbonize its economy in a way that ensures significant positive economic growth while ensuring sustainable development," he said.

Additionally, the ceremony of signing an agreement on a cooperation program related to renewable energy sources, between the Azerbaijani State University of Oil and Industry and British Petroleum has been held in Baku on June 2.

The document was signed by bp's Vice President for the Caspian region Bakhtiyar Aslanbayli and Rector of the University Mustafa Babanli.

BP opened its first office in Baku in June 1992 and has since then contributed to Azerbaijan’s oil and gas sector through operating projects, such as Azeri-Chirag-Gunashli (ACG), Shah Deniz, Baku-Tbilisi-Ceyhan (BTC), and South Caucasus Pipeline (SCP).