Page 12 - FSUOGM Week 26 2022

FSUOGM PROJECTS & COMPANIES FSUOGM

Azerbaijan accounts for half of BP's upstream

payments to governments in 2021

AZERBAIJAN OVER half of the $19.725bn in payments BP Meanwhile, a mere $127mn went to the UK,
made worldwide to governments went to Azer- although this is the first time the company has
The UK meanwhile baijan last year, the oil and gas major said in a paid anything to the government of its home
received its first tax regulatory disclosure on June 24. country in at least six years. In 2020, in contrast,
payment from BP in BP is the largest foreign investor in Azerbai- it received a $42mn tax refund.
years. jan, operating the country’s flagship oil and gas Like other North Sea oil and gas producers,
assets – the Azeri-Chirag-Gunashli oil project BP does not often pay tax on its operations in
and the Shah Deniz gas development. It also the UK because of losses tied to investments in
owns the pipelines that send their production to fields. Many producers also get rebates to fund
Europe, and is involved in a number of explora- decommissioning work, including the disman-
tion prospects in the Azeri zone of the Caspian tling of platforms. As the region has grown more
Sea. mature, this has meant that in recent years they
BP’s payment disclosure covers production have received more money from the government
entitlements, taxes, royalties, fees, bonuses than they have paid. Last year, for example, BP
and infrastructure improvements relating to collected $50mn from the government in con-
upstream operations. Its payments to the Azeri nection with decommissioning work.
government amounted to $10.59bn, of which BP publishes a separate report of its total tax
production entitlements accounted for $9.96bn. contribution to countries, including corporate
A further $171.7mn was taxes, $2.8mn fees and and employer taxes, as well as production lev-
$451mn bonuses. ies and refunds, covering its entire operations
In second place, the UAE accounted for and not just the upstream business. That report
$3.24bn of BP’s government payments, followed showed it paid $263mn to the UK in 2020, with
by Oman, which received $1.68bn, Angola most of that sum relating to employer contribu-
$1.51bn and the US $1.07bn. tions. ™

P12 www. NEWSBASE .com Week 25 22•June•2022