BP
www.bp.com
Contact Information
International Headquarters
1 St James’s Square
London, SW1Y 4PD
T: +44 (0)20 7496 4000
F: +44 (0)20 7496 4630
History in Turkmenistan
In August 2007 , the head of BP’s exploration and production operations met with Berdymukhamedov to convey the company’s interest in developing projects in Turkmenistan.[i] In an August 28, 2008 letter to Crude Accountability, a representative of BP Exploration Operating Company Limited explained, “We are currently at a very early stage regarding our activities in Turkmenistan. We are fact finding and exploring the possibility of business opportunities.”[ii] Further indicating the company’s intention to begin working in Turkmenistan, BP was the sole platinum sponsor,” the highest level of sponsorship, for the 13th Turkmenistan International Oil & Gas Conference, which took place in November 2008.[iii] In February 2009, BP announced that it was in discussions with the Government of Turkmenistan regarding a Production Sharing Agreement to develop several offshore blocks.[iv] In its June 2012 global energy reserves report, BP revealed that Turkmenistan now possesses more than 11% of the world’s proven oil reserves with 24.3 trillion cubic meters.[v]
Current Scope of Operations
While there have been no reports of BP securing any contracts in Turkmenistan, the company maintains a high profile in the country. BP was the sole platinum Sponsor of the 2010 Turkmenistan International Oil and Gas Conference (OGT), a silver sponsor of the Turkmenistan Gas Conference in May 2011, the sole platinum sponsor” of the 2012 OGT, and a silver sponsor for the 2019 OGT.[vi]
Further, BP also maintains its profile through an established branch based in Turkmenistan, according to a 2020 BP strategic report.[vii] The company has continued to voice its interest in Turkmenistan, most recently at the 7th session of the Turkmenistan-UK Trade and Industry Council (2019) held in Ashgabat, Turkmenistan. Jim Platt, the BP Business Development Manager in Azerbaijan, Georgia, and Turkey, stated, “We believe that interaction with host parties is a [real] win-win situation for both British Petroleum and the countries involved in such cooperation… We look forward to further strengthening and expanding our presence in the Caspian region.”[viii]
Beyond profile, BP has also maintained an indirect relationship with the Turkmenistani oil sector via the Baku-Tbilisi-Ceyhan pipeline. The pipeline, in which BP holds 30.1% of shares, has reportedly “transported” Turkmenistani oil for some time. The 2010 BP in Azerbaijan Sustainability Report highlights that a transportation agreement was reached in July of that year for Turkmen oil to flow through the pipeline.[ix] The agreement was reached between SOCAR Trading (a subsidiary of the state oil company of Azerbaijan) and Dragon Oil to transport oil via tanker from Turkmenistan to the BTC terminal in Azerbaijan.[x] Following BP reports indicate that Turkmenistani oil continues to flow through the pipeline into 2018. While most registered tankers can be tracked within the Caspian, information regarding their hull type is not. Per the International Convention for the Prevention of Pollution from Ships, maintained by the International Maritime Organization, “tankers of 5,000 dwt and more [are] ordered after 6 July 1993 to be fitted with double hulls, or an alternative design approved by [the] IMO (regulation 19 in Annex I of MARPOL).”[xi] As all Caspian states are members of the IMO, it is curious why this information is not available, particularly as several tankers active between Azerbaijan and Turkmenistan were built before the ordinance came into effect.[xii]
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[i] Reuters, “BP Eyes ‘Unique’ Energy Resources of Turkmenistan,” August 24, 2007, https://www.reuters.com/article/idUKL2476284020070824?edition-redirect=uk. Accessed February 18, 2022.
[ii] August 28, 2008 letter from Jonathan Popper, Performance Unit Leader, Central Asia, Russia & Central Asia Renewal Business Unit, BP Exploration Operating Company Limited to Michelle Kinman, Deputy Director, Crude Accountability.
[iii] http://www.oilgasturkmenistan.com/face/2sponsorship.php. Original weblink no longer active.
[iv] Ataguly, Elnur. “BP Negotiating Development of Turkmenistan’s Caspian shelf,” Central Asia online, Feb. 16, 2009, http://centralasiaonline.com/cocoon/caii/xhtml/en_GB/features/caii/features/
2009/02/16/feature-04. Original weblink no longer active.
[v] The Moscow Times, “BP Calculates Global Energy Reserves,” June 15, 2012; http://www.themoscowtimes.com/business/article/bp-calculates-global-energy-reserves/460361.html#ixzz1zPqqGUDt. Original weblink no longer active.
[vi] 17th Turkmenistan International Oil & Conference, “Sponsors,” Turkmenistan International Oil and Gas Conference; http://www.oilgasturkmenistan.com/sponsors. Original weblink no longer active.
[vii] BP, https://www.bp.com/content/dam/bp/busine. Accessed December 7, 2021.
[viii] Trend, “BP ready to expand its presence in Caspian region,” April 26, 2019, https://en.trend.az/business/energy/3052523.html. Accessed December 7, 2021.
[ix] BP, “BP in Azerbaijan Sustainability Report 2010,” https://www.bp.com/content/dam/bp/business-sites/en/global/corporate/pdfs/sustainability/archive/archived-country-reports/azerbaijan/bp-sr2010-azerbaijan.pdf. Accessed December 7, 2021.
[x] OSW, “Turkmen oil flows to the West through the Baku-Tbilisi-Ceyhan pipeline,” August 18, 2010, https://www.osw.waw.pl/en/publikacje/analyses/2010-08-18/turkmen-oil-flows-to-west-through-baku-tbilisi-ceyhan-pipeline. Accessed January 13, 2022.
[xi] IMO, “Construction Requirements for Oil Tankers – Double Hulls,” https://www.imo.org/en/OurWork/Environment/Pages/constructionrequirements.aspx. Accessed January 13, 2022.
[xii] Vesselfinder.com, “VESSELS DATABASE, Azerbaijan,” https://www.vesselfinder.com/vessels?type=6&flag=AZ. Accessed January 13, 2022.