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16 May 2007



I'm sure this is just the tip of the iceberg.


The irony of this story (if true) is that BP probably didn't actually end up paying for any of these "expenses" in the end. It is actually the Azeri treasury that ended up bearing the burden of these costs. Most likely, BP deducted these expenses on their Azeri Profit tax return, and also probably got full cost recovery for them under the Production Sharing Contracts that BP eventually signed. The only effect these "expenses" had on BP's bottom line was to increase the amount of reserves that BP could show on its books since it received cost recovery petroleum under the cost recovery provisions in the ACG and Shah Deniz PSCs.


I must say I also read about that stuff and thought so what's new. Spying? For what? Nobody has ever accused the Azeris of having weapons of mass destruction. Industrial espionage amongst oil companies bidding for Azeri or Russian resources maybe, but spying?


Yes, it's too much money for girls - however talented and hard working they might have been.

Volkswagen had a similar scandal a couple of years ago. The bimbo budget was just 730,000 Euro over two years, while millions were being siphoned and salted away in various creative ways. The expense account was a smokescreen.

Apropos 'spying' - following money trails is what agents do these days. It's what Litvinenko and Limarev were up to, tracking down Yukos bribes and stashes in various parts of Europe.


And anyway, if the Azeris were getting arms from the Brits, shouldn't they have, um, won the war?

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