Ali Asadov meets BP CEO: Baku and London deepen energy ties as Caspian strategy shifts

Baku, 12 May — Azerbaijan’s Prime Minister Ali Asadov has held talks in Baku with a senior BP delegation led by new chief executive Meg O’Neill, in a meeting that underscores the enduring strategic energy partnership between the South Caucasus nation and Britain.

The two sides praised what they called “long-standing and effective partnership” and agreed to expand mutually beneficial cooperation under O’Neill’s leadership, according to Azerbaijan’s state news agency AZERTAC. The discussion highlighted BP’s long-term contribution to Azerbaijan’s energy sector and explored future collaboration, signalling continuity in one of Britain’s most important industrial relationships in the wider region.

Britain’s energy footprint in Azerbaijan dates back to the 1990s, shortly after Baku gained independence. BP was among the first Western major companies to enter the Caspian basin, playing a central role in the 1994 “Contract of the Century” — the landmark deal to develop the Azeri‑Chirag‑Gunashli (ACG) oilfield. That agreement, worth an initial $7.4bn, helped transform Azerbaijan into a major oil and gas exporter and turned BP into the country’s single largest foreign investor.

Over nearly three decades, British capital and expertise underpinned the construction of critical export routes, including the Baku‑Tbilisi‑Ceyhan (BTC) pipeline and the Southern Gas Corridor, which now carries Caspian gas directly to European markets. For the UK, the relationship has secured diversified energy supplies and strengthened diplomatic leverage in a region contested by major powers. For Azerbaijan, it has provided economic stability, infrastructure and diplomatic support amid tensions with neighbours and competition for regional influence.

In recent years, the alliance has moved beyond fossil fuels. BP has rolled out decarbonisation plans and renewable projects in Azerbaijan, including a 240MW solar plant in Jabrayil, part of a shift toward low‑carbon energy while maintaining oil and gas production. London and Baku now frame their cooperation as a dual track: sustaining energy security for Europe while accelerating the green transition.

Diplomatic observers say the latest meeting comes at a sensitive geopolitical moment. Azerbaijan has recently taken a tougher stance toward European institutions, halting cooperation with the European Parliament over what it calls interference and double standards. At the same time, Baku has sought to preserve stable, business‑focused ties with key Western capitals — including London — which remain vital for energy investment, technology and access to global markets.

Unlike some European capitals, Britain has largely avoided public political confrontation with Azerbaijan, focusing instead on commercial and strategic energy interests. That approach has allowed BP to operate steadily even as EU‑Azerbaijan political friction grows.

As Meg O’Neill takes the helm at BP, the Baku meeting suggests both sides want to insulate core energy cooperation from wider diplomatic turbulence. For Azerbaijan, continued British investment and technical know‑how are essential as it seeks to extend the life of mature fields, develop new gas reserves and build clean energy capacity. For Britain, the Caspian remains a strategic pillar in its efforts to diversify away from risky supply chains and support European energy security.

With no sign of a let‑up in geopolitical competition in the South Caucasus, the UK‑Azerbaijan energy partnership looks set to remain a cornerstone of both countries’ regional strategies — balancing old oil and gas realities with a new low‑carbon future.