Bloomberg News

BP Terminates Deal With Contractor After Azeri Fraud Allegations

July 10, 2012

BP Plc (BP/) said it will cancel a contract with a company following allegations of fraud related to a project in Azerbaijan.

“A contractor told BP that it violated BP’s rules of behavior in the past,” Tamam Bayatli, a BP spokeswoman in the Azeri capital of Baku, said by telephone today. “We are now in the process of terminating our contract with that contractor company.”

She gave no details of the contractor or the project involved in the case.

The Telegraph reported at the weekend that BP is part of a U.K. Serious Fraud Office investigation over bribery allegations filed against one of its engineering contractors in Azerbaijan.

The unnamed contractor reported the allegations itself to the SFO last year, while there are no suggestions that BP employees paid bribes, the newspaper said.

David Jones, a spokesman for the SFO, declined to comment.

BP is leading oil and gas projects in Azerbaijan, including the Azeri-Chirag-Guneshli, or ACG, and Shah Deniz developments.

To contact the reporter on this story: Zulfugar Agayev in Baku at zagayev@bloomberg.net

To contact the editor responsible for this story: Hellmuth Tromm at htromm@bloomberg.net


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