BAKU Azerbaijan Republic's unofficial TV network Space' announced Monday the the British oil giant BP is not willing to lose its lofty benefits in Iran at the cost of insisting going on with its activities in a shared oil field in the Caspian Sea.

The BP immediately stopped its discovery activities in Iran's Alborz Energy Block upon receiving a warning from an Iranian navy combat ship.

The Azeri TV referred to an interview by a BP official in the *** Financial Times**** in which he hoped that the Caspian Sea incidence would not have negative effects in his company's vast projects being carried out in southwest Iranian oil fields.

Space' TV's energy commentator concluded, "That explains BP's relative indifference towards the last Monday incidence."

The commentator went on to say that the BP has considered the issue as one that has to be settled between Tehran and Baku, while attaching greater importance to its contracts with Iran.

Tehran-Baku relations turned tense following the IRI navy's Monday warning.

Iran's Foreign Minister Kamal Kharrazi here Friday welcomed a statement by the Azeri President Heidar Aliyev to settle the Caspian Sea issue through peaceful negotiations.

President Aliyev is going to visit Tehran in near future based on an earlier fixed schedule.

Kharrazi said the Caspian Sea countries should avoid any action which could create misunderstanding among the regional states adding that the Caspian Sea littoral states should wait for the determination of the Caspian Sea legal regime before any move to prospect for the energy-rich spots.

He voiced Iran's readiness to hold talks with the Azeri officials and said considering the Iranian Foreign Ministry notes and policies would surely contribute to achieving positive results for the

Iran-Azerbaijan cooperation.

Head of the Caspian Sea Research Institute Abbas Maleki on July

25 accused the Republic of Azerbaijan of taking hasty actions in oil related issues which he blamed for the country's dispute with all its neighbors.

The British government, too, has announced that the UK fully understands Iran's stance, a British Foreign Ministry official stated last Tuesday, adding that BP will definitely suspend its activities in the Caspian Sea as long as Iran does not permit it to do so.