A heated feud is brewing between British Petroleum (BP) and the Republic of Azerbaijan. According to a report from Reuters, the Middle-Eastern country is citing a lack of production at one of its key oil fields and is pointing the finger squarely at BP.
Azerbaijan president Ilham Aliyev is blaming BP for not keeping to its word as the massive Azeri-Chirag-Gunashli (ACG) oilfield – controlled by the British oil company – has come up a reported $8.1 billion short in expected revenue.
This is yet another massive blow to BP – a company that is still struggling to restore its reputation after its massive oil spill topped headlines in 2010. An unnamed source spoke to Reuters about the allegations and said that both sides are determined to find out why output is so low and find an appropriate course of action to mitigate the revenue loss.
"A joint working group is being set up, which will try to look into reasons for the decline in oil output and to find a solution," the source said.
Improve output with proper oilfield equipment
As BP and the nation of Azerbaijan search for answers, there are a number of ways that they can increase output and alleviate the tension between them. In fact, all companies looking for a way to improve their own oilfield production numbers should invest in technologies that spur extraction efficiency and assist in the meeting of output targets.
Artificial lift can speed up the process and ensure a fast, efficient and safe oilfield project. In today's uncertain economy, oil companies cannot afford to fall behind production schedules, so investing in the right tools is a wise business decision.
Companies looking to improve the extraction process should contact an oilfield solutions provider.