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    Azerbaijan accounts for over half of BP govt payments

Summary

BP paid the Azeri government $10.59bn in production entitlements and other fees last year. [image credit: BP]

by: NGW

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Azerbaijan accounts for over half of BP govt payments

Azerbaijan accounted for 54% over BP's $19.725bn in global payments to government in 2021, the energy major reported on June 24, in compliance with UK regulations.

The payment disclosure covers production entitlements, taxes, royalties, fees, bonuses and infrastructure improvements. BP's payments to the Azeri government amounted to $10.59bn, of which production entitlements accounted for $9.96bn.

BP also paid $171.7mn in taxes, $2.8mn in fees and $451mn in bonuses in the country.

The company serves as operator of the country's flagship Azeri-Chirag-Gunashli oil project, the Shah Deniz gas field, and has interests in the oil and gas pipelines that carry their production to market. It is also involved in various exploration projects.

The UAE accounted for a further $3.23bn of BP's government payments, while Oman received $1.68bn, Angola $1.51bn and the US $1.07bn. The UK received only $127mn.