The Telegraph reports that UK’s SFO is investigating BP for potential bribery in connection with engineering projects in Azerbaijan. According to the paper, the conduct at issue involves one of BP’s contractors, which self-reported the allegations to the SFO. The paper notes that the timing of the allegations will be key. If events alleged took place after July 1, the UKBA would be the operative regime, and BP could face liability for the contractor’s actions (even though there are no allegations BP directly took part in any wrongdoing. One point of interest in the Telegraph story is the simple, trenchant observation that:
No company has yet been prosecuted by the SFO under the Act although a number of investigations are understood to be ongoing.
Obviously, if the SFO proceeds against BP under the UKBA, this would be quite the smashing of the champagne bottle on the hull. But at this point, both BP and the SFO are quite, well, quiet. The Telegraph notes that the investigation comes at an inopportune time for BP (perhaps that’s always the case) because the company is developing the Shah Deniz oil field, worth an estimated $25 billion (i.e. enough to pay off its Gulf Coast related claims.) The paper clarifies that the investigation is not connected to the field but arises out of another issue.
This investigation may be one that everyone wants to go away quietly rather than make into a spectacular maiden example for the UKBA’s enforcement.
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