View from Russia: Ilham Alyev does not approve union of BP and Rosneft

After BP contracted an alliance with Rosneft it started having problems in Azerbaijan. State Oil Company of Azerbaijan (SOCAR) believes that the deal will allow the Russian authorities exerting an indirect influence on the energy carriers' production in Azerbaijan through the British company.

At present BP owns 20% shares of Rosneft company and two representatives of the British company will be on the Board of Directors of the Russian partner, while the BP administration should have a

"Russian director." BP is involved in the Shah-Deniz-2 gas project development worth $28 billion, which goal is to lessen Europe's dependence on the Russian gas export by building a new gas pipeline.

"This is not only the matter of energy security. This is also a problem of political and national security. SOCAR is seriously concerned," said representative of the Azerbaijani oil and gas industry on condition of anonymity.

The Azerbaijani authorities "are concerned about Russia's strengthening its influence in the region after its intervention into Georgia in 2008, when nobody even said a word."

Even BP President Robert Dudley had to fly to Baku to assure President Ilham Aliyev face-to face that the British company "still adheres to its projects in Azerbaijan."

Russia and Azerbaijan compete in the gas deliveries to Europe and any deal between BP and Russia will be interpreted by Azerbaijan in this light."

It is hard to say if BP plays a dangerous game trying to preserve its positions in both countries and balance them. BP does not want to choose between Russia and Azerbaijan, but invest in both countries.

On October 22, 2012 Rosneft company announced concluding of a contract with BP and AAP to buy 100% shares of TNK-BP from its shareholders, reported http://neftegaz.ru portal.-0--