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Wednesday, December 15, 2010

Power of BP

WikiLeaks cables: Azerbaijan complains of BP clout in country | World news | The Guardian: "In the 21st-century equivalent of the 'Great Game', it seems that some Azeri ministers knew that there is likely to be only one winner in pipeline politics – BP.

Azerbaijan will become even more important in the future in supplying Europe with energy as new pipelines are planned to transport the vast oil and gas reserves in the Caspian Sea region westwards. But the US diplomatic cables show that in reality, despite threats and bluster from the government, it is BP who holds the key to how, when and where Azerbaijan's reserves are developed.

n a cable written in April 2007, the country's energy and industry minister, Natiq Aliyev, complains that "for much, if not most, of the GOAJ's [government of Azerbaijan] gas production, 'we depend on BP.'"

Discussing the progress of future pipeline plans, he stresses "that the GOAJ is ready and willing to co-ordinate and co-operate with European customers, but the GOAJ has no ability to fulfill (sic) BP's obligations. We can't answer Europe (re availability of gas) without BP".'"

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