The 20th International Exhibition and Conference "Caspian Oil & Gas: Refining and Petrochemicals”, the biggest oil and gas event of the Caspian region which marks the 20th anniversary of its successful activities, has started at the Baku "Expo Center".
The opening ceremony was attended by President of the Republic of Azerbaijan Ilham Aliyev and his wife Mehriban Aliyeva.
The ceremony was opened by the chief consultant of the British company ITE Group Plc, Andrew Wood.
The head of state made a speech at the opening ceremony of the exhibition and conference.
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Speech by President of the Republic of Azerbaijan Ilham Aliyev
- Dear guests, ladies and gentlemen!
I cordially greet all of you! It is the 20th anniversary of the "Caspian Oil and Gas" exhibition today. This is a great historic event. For 20 years this exhibition has been attracting a growing number of companies. This year’s exhibition brings together about 400 companies.
This in itself is an indicator of the fact that after 20 years the exhibition has not lost its significance. On the contrary, its value has further increased. Even though the major oil and gas contracts have already been signed, foreign companies have been operating successfully for many years in Azerbaijan and the importance of the exhibition is growing. Of course, the traditional congratulatory messages sent by the President of the United States of America and the British Prime Minister once again prove how important this exhibition is.
Azerbaijan has also covered a long road in 20 years. Azerbaijan has made great strides in the energy sector. Twenty years ago we were at the initial stage of this work. The exhibition has been very helpful. It has proved very important to the development of Azerbaijan’s oil and gas sector.
In 1994, when the first exhibition was held, there was not enough information about Azerbaijan in the world. The companies operating in the oil world did know that Azerbaijan is an ancient oil country, but there was not enough information about the real potential and plans for the future development of our country.
At the time we could not fully see our future and how Azerbaijan would develop even though a new oil strategy was developed and introduced under the leadership of Heydar Aliyev in Azerbaijan in the mid-1990s.
As a result of this strategy, Azerbaijan has successfully resolved all key energy issues it was facing. Azerbaijan has ensured the independence of its economy and managed to strengthen its independence. Azerbaijan is a wonderful platform for international cooperation. And we have exact plans and specific programs for the coming years. Twenty years ago there were only programs and intentions related to the development of Azerbaijan.
Of course, the signing of the "Contract of the Century" was a historic event and a watershed. It is no coincidence that the contract was labeled as the "Contract of the Century" in 1994. Now, in the 21st century, we can say that this is a contract of two centuries because the contract signed for the fields of "Azeri-Chirag-Gunashli" is still very relevant today. In fact, the new corridors opened as a result of this contract have set the stage for the successful development and implementation of other projects.
Quite a lot has been said about the significance of the "Contract of the Century" and there is no need to repeat that. I just want to note that Azerbaijan was the first to open the Caspian Sea to foreign companies for joint development. The transportation infrastructure linking the Caspian Sea with the Black and Mediterranean Seas was put in place for the first time. And this, in turn, gave an impetus to the successful implementation of other projects today.
We have gained extensive experience in international cooperation. As a result of the "Contract of the Century", other sectors have been revitalized in Azerbaijan. An excellent investment environment has emerged. Today Azerbaijan ranks first in the CIS in terms of foreign direct investment per capita.
We have managed to channel the oil capital into human capital and the revenue from the oil sector into the development of the non-oil sector. Not a single forecast of certain analysts that Azerbaijan would be affected by the "Dutch disease" or the "resource curse" has come true because we have sound policies. Our policy meets the interests of the Azerbaijani people.
Exactly 17 years ago, during the 1996 exhibition, the "Shah Deniz" contract was signed. The gas factor was not perceived seriously enough in the world and Europe at the time. Therefore, the signing of the "Shah Deniz" contract did not reverberate too much in the world. But we knew that there would come a time when Azerbaijan will emerge not only as an oil but also as a gas country. We knew that we have rich gas fields. We knew that as a result of their development we will provide long-term and sustainable development of our country.
As a result of the "Shah Deniz" project and the successful international cooperation, it is the "Shah Deniz" gas field that has crucial influence on regional developments related to energy security today. It is impossible to imagine the energy security of the region without the "Shah Deniz" project today. When we talk of "energy security", we primarily mean natural gas. If the "Contract of the Century" had not been signed and the Baku-Tbilisi-Ceyhan oil pipeline had not been built, i.e. if this corridor had not been created, then the implementation of the "Shah Deniz" project could be called into question. It is thanks to the presence of these corridors and the successful trilateral cooperation between Azerbaijan, Georgia and Turkey that we have succeeded in realizing the "Shah Deniz" project. After the commissioning of the Baku-Tbilisi-Ceyhan oil pipeline in 2006, the Baku-Tbilisi-Erzurum gas pipeline was built in the same corridor. Today, this pipeline and our future plans associated with it play an important part in the relations between Azerbaijan and Europe.
The gas field and the project of "Shah Deniz" is the largest energy project in the world. The first stage of the "Shah Deniz" project is being successfully implemented. We are close to the second stage. SOCAR has developed excellent cooperation with all partners. The establishment of this cooperation began with the "Contract of the Century". The signing of this contract turned the State Oil Company of Azerbaijan into an international company. Today, the State Oil Company of Azerbaijan has very strong positions both within the country and in the world.
On this anniversary I want to emphasize the activities of our main partner - BP. BP is our strategic partner. From 1994 to the present day, over 20 years, BP and SOCAR have established a great relationship. BP is the operator of both the "Azeri-Chirag-Guneshli" and "Shah Deniz" projects. It is also involved in other projects. Over the past 20 years this strategic partnership has achieved high peaks. This strategic partnership will be continued in the future too - at least in the next 20 years, perhaps even longer.
The implementation of these contracts and the work done have also enabled the State Oil Company of Azerbaijan to expand its activities in the world as an international company.
Today, SOCAR owns major investment projects not only in Azerbaijan, but also in different countries. This investment is successfully made in Turkey, Georgia, Switzerland, Ukraine, Romania, the United Arab Emirates, as SOCAR expands its investment portfolio. It has been a great experience for us. At the same time, on the basis of high-level contracts, arrangements have been made on the training of Azerbaijani personnel.
Today, the vast majority of employees of international consortia are the citizens of Azerbaijan. In 1994, when the "Contract of the Century" was signed, the possibilities of our country were not very large, not what they are now. Despite that, we managed to secure the best possible conditions for Azerbaijan. At the same time, investors were also provided with excellent conditions. This is why 75 per cent of the profit oil belongs to Azerbaijan, and this share will account for 80 per cent in the future. The contracts specifically cover the activities of Azerbaijani specialists.
Over the past 20 years we have covered a long and successful road. At each exhibition we exchange views on the work done over the past year. I remember talking about the discovery of new fields in previous exhibitions. I am glad that the discovery of the "Shah Deniz" gas field was followed by the discovery of "Umid" and "Absheron" fields. This has also contributed a lot to the country’s gas potential. At present, Azerbaijan’s proven gas reserves constitute 2.6 trillion cubic meters. New data may further increase this volume.
During the current exhibition I want to emphasize the start of the TANAP project, which has been the most important event in this area over the past year. Less than a month after the previous event Turkey and Azerbaijan signed the TANAP contract. The TANAP project is of great historic significance.
I am glad that Azerbaijan has assumed the major financial burden. Thus, all the opportunities for the implementation of the TANAP project are available. The TANAP project is a component and perhaps the main part of the Southern Gas Corridor. TANAP is a project that requires large financial expenditure. It also requires great technical expertise. We are ready to provide that and are already doing it together with our partners. The TANAP project is the key condition for the successful realization of the Southern Gas Corridor.
At the same time, the beginning of the TANAP project means that the Southern Corridor will be implemented! Different opinions are being expressed in connection with the Southern Gas Corridor. This was the case in the past and it is still happening today: will it be implemented or not? How big are the problems? Indeed, there are enough problems. As you may know, the debate on the Southern Gas Corridor has been ongoing for many years. But no tangible steps are taken.
Under such circumstances, we thought that if Azerbaijan does not take the main responsibility again, then, in all likelihood, the negotiations will last for several more years. But we can’t waste time because the time factor also plays an important role in such issues.
Therefore, Azerbaijan took on this tremendous responsibility. Today, there are no obstacles in the way of the TANAP project.
At the same time, the TANAP project is a very important factor in the energy security of Europe. Of course, it will provide further long-term development of our country. We have rich oil fields. These oil fields will serve us for many more decades. But we have to look ahead: how will Azerbaijan develop after 50, 60 and 70 years from now?
Therefore, the availability of large gas fields requires us to invest a lot in these large projects, so that future generations enjoy these opportunities. Azerbaijan has enough gas reserves for at least another hundred years, perhaps even more.
Thus, Azerbaijan will become an indispensable gas exporter for Europe. Of course, there are both economic and other aspects.
Thus, the realization of the Southern Gas Corridor is very important for us.
I am glad that all the parties involved in the realization of this project share the same opinion. I believe that this is yet another successful example for the world's energy family. In our case producers, transit countries and consumers act as a team. There is no disagreement between us. Only a balance of interests of all three parties can lead to success.
I believe that our successful experience in this field can be studied. This experience shows once again that the energy policy should not become a battleground. Energy policy should become an arena for cooperation. This is how we approach this issue. I think that our 20 years of experience show that we can achieve great success through cooperation.
Thus, Azerbaijan, transit countries and European nations are assertive in the implementation of the Southern Gas Corridor. In the early 2011, Azerbaijan and the European Union signed a memorandum on strategic partnership on the Southern Gas Corridor. And this memorandum is being successfully implemented. I want to say again that this is a very big project. This is a geopolitical and geo-economic project. This project will lend some nuances to the energy map of Europe. So we are redrawing the energy map together. Of course, we are well aware of the responsibility involved. We are very proud and pleased to say that the decisions made in Azerbaijan, including the negotiations and decisions made during such exhibitions, represent great importance on a global scale.
In short, the successful energy policy of our country has long moved beyond Azerbaijan. We have successfully solved all issues related to our energy security. There are no unresolved issues.
Now our efforts are focused on our contribution to the international energy cooperation and, as I said, on the implementation of projects to ensure long-term development of our country.
I want to note that the present-day Azerbaijan is the best example of work carried out in the energy sector. We can talk about the successful development of our country for a long time. Suffice it to look at Azerbaijani cities to see that the Azerbaijani oil actually serves the interests of the Azerbaijani people. I believe that thanks to a prudent policy we have been able to route our oil revenues into the development of the non-oil sector. We have managed to invest a lot in human capital. We have fully ensured transparency in this area. The State Oil Fund operating for 15 years now is one of the leading sovereign funds in the world. The State Oil Fund of Azerbaijan is characterized by transparency and governance in the true meanings of these words, and, in general, meets all the criteria.
The transparency established in the energy sector, of course, enables us to use this positive experience in all other areas and ensure transparency elsewhere. We are currently working on these issues. The successful operation of the Oil Fund is an incentive and perfect base for us.
The transparent accumulation and spending of revenues, of course, provide for transparency. At the same time, they help every manat to be spent properly and aimed at the development of the Azerbaijani people and our country.
Of course, we have used and are using these revenues to develop our country. The Oil Fund revenues are growing every year. I think this is also a wonderful experience. They grow every year. At the same time, funds are channeled into other areas each year to address the main problems of the country. That is why I believe that we have now significantly reduced our dependence on the oil factor. Currently, the bulk of Azerbaijan’s gross domestic product is formed in the non-oil sector. This is an excellent indicator. It shows that our policy of diversification is bearing fruit. My words are confirmed again by the results of four months of this year. In four months our non-oil sector grew by 11 per cent. This is evidenced by the fact that all our initiatives related to diversification are implemented and the sustainable development of our country ensured.
We invest heavily in infrastructure projects and new technologies. We have launched a satellite into orbit. We are comprehensively developing our country. I believe that thanks to the implementation of the "Azerbaijan - 2020" concept, our country should enter the ranks of developed countries in the coming years. That is our main goal.
Today, the Azerbaijani economy is already ranked 46th among the world's most competitive economies. Today, Azerbaijan’s financial performance can serve as an example for any country. Unemployment is 5.2 per cent, poverty 6 per cent, strategic currency reserves account for 70 per cent of the gross domestic product and foreign debt for 7 per cent of the GDP.
More than a million jobs have been created. All this is a reality. Of course, these achievements are underpinned by the oil factor, but not just the oil factor, but by public policy successfully using oil. There are many countries in the world producing and exporting oil and gas. I believe that the experience of Azerbaijan is worthy of great praise.
I am confident that the successful development of our country will be continued in the coming years. I am sure that all of our initiatives related to resolving energy issues will be implemented. The work done over 20 years of work and the experience gained show that any project we have launched has been successfully implemented. As for the successful development of our country, there are specific programs in this regard, and these programs are implemented.
While attending this anniversary event, I want to express my special gratitude to all the companies operating in Azerbaijan, especially those that believed in us in the early years, in the mid-1990s, invested in Azerbaijan and thus gave an impetus to our economic development. I want to say that Azerbaijan will continue to operate and cooperate successfully with its strategic partners.
I am sure that the importance of this show will continue to grow and we will see even more companies next year.
I wish the exhibition and conference success. Thank you.
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US Ambassador to Azerbaijan Richard Morningstar said in his remarks:
- Mr. President! Mrs. Aliyeva!
Dear ladies and gentlemen!
I am very pleased to participate in this very important event, the 20th anniversary exhibition and conference, today.
I have participated in a number of conferences and read out a number of congratulatory messages. But this is the first time I will read out a congratulatory message on behalf of the President of the United States, Barack Obama, as US Ambassador to Azerbaijan.
Richard Morningstar read out a congratulatory message from US President Barack Obama to President Ilham Aliyev.
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A member of the British Parliament, the envoy of the Prime Minister for Issues of Commerce in Azerbaijan, Kazakhstan and Turkmenistan, Charles Hendry, greeted President of Azerbaijan Ilham Aliyev and the participants of the ceremony, read out a congratulatory message on behalf of the Prime Minister of the United Kingdom of Great Britain and Northern Ireland, David Cameron.
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Then, President Ilham Aliyev and wife spouse Mehriban Aliyeva reviewed the pavilions of the exhibition.
The President of the State Oil Company of the Azerbaijan Republic (SOCAR), RovnagAbdullayev, and First Vice President of SOCAR, Khoshbaht Yusifzadeh, provided President Ilham Aliyev with detailed information about the ongoing activities related to the exploration, drilling, nanotechnology, gas supply, petrochemicals, refining, environmental issues, social and other matters. The head of state was updated about the work Azerbaijan, a country possessing an extensive network of export oil and gas pipelines, is doing together with its strategic partners on the TANAP project.
While touring the pavilion of SOCAR, the President and his wife examined a section describing key milestones of the oil strategy laid down by nationwide leader Heydar Aliyev.
British company BP works very effectively in the country and successfully cooperates with SOCAR on the implementation of a number of projects. The head of state was informed about BP’s main technological programs on exploration and production
The Minister of Economic Development, Shahin Mustafayev, informed the President about the measures being taken in accordance with his instruction to establish the Sumgayit Chemical Industry Park. It was noted that a wide range of activities were under way in Azerbaijan to produce competitive industrial goods through the application of innovative and high technology. From this point of view, the Sumgayit Chemical Industry Park will soon become one of the main chemical industry centers not only in the country but also in the South Caucasus and the Middle East.
President Ilham Aliyev and his wife MehribanAliyeva were provided with detailed information regarding projects aimed at making the SOCAR-owned company Petkim in Turkey one of the most advanced petrochemical companies in the world.
French company “Total”, which has been successfully operating in Azerbaijan for more than 15 years, also intends to strengthen cooperation with our country and is working on several projects.
Italian company “SAIPEM” has extensive experience in implementing large-scale projects both off- and onshore. It is involved in the development of the "Gunashli" field and other projects in Azerbaijan.
Russia’s “Rosneft” is stepping up its efforts to be represented in Azerbaijan’s oil market more widely. The company has more than 17,000 employees and a wealth of experience in the oil industry.
“Global Energy Azerbaijan” is noted for its activities in the field of onshore oil production in Azerbaijan. The company, established through a merger of a number of entities involved in onshore oil production, is now working on new projects.
The Caspian Drilling Company LTD, on the market for 17 years, is engaged in the drilling of wells, provides complex project management services in the Caspian Sea and works specifically towards being represented in international oil and gas projects.
President Ilham Aliyev and his wife MehribanAliyeva also reviewed a pavilion of “TürkiyePetrolları”. It was indicated that the company, successfully operating in Azerbaijan’s oil industry since the signing of the "Contract of the Century", also works closely with our country.
The pavilion of the Norwegian company “Statoil”, which operates in 36 countries around the world, is very diverse. The company is actively engaged in a number of projects in Azerbaijan and applies advanced oil and gas industry technologies.
The US company “Halliburton Eurasia Limited” is considered one of the most advanced companies in the global energy sector. The head of state and his wife were provided with information about the projects being implemented by the company, which operates in more than 80 countries around the world.
Azerbaijan is engaged in comprehensive work related to the development of alternative and renewable energy sources.
President Ilham Aliyev and his wife MehribanAliyeva were informed about the ongoing and future projects in the area.
It was indicated that another BP-organized event, “Meet the Buyer”, was also held at the Baku Expo Center. The main objective of the event is to enhance the participation of local companies in the international oil and gas projects under way in the country by increasing their competitiveness.
The President and his wife were also familiarized with the pavilion of the Austrian company “OMV”, which expands cooperation with Azerbaijan.
On the occasion of the 90th birthday anniversary of great leader Heydar Aliyev, a special stand has been arranged at the Baku Expo Center. It describes the development path traversed by the "Caspian Oil and Gas" exhibition since 1994.
President Ilham Aliyev signed the guest book of the "Caspian Oil & Gas: Refining and Petrochemicals" exhibition and conference.
While reviewing the open-air exposition, the President was familiarized with the oil and gas industry equipment manufactured by the "Azneftemash" OJSC.
It was noted that at present the products of the company were supplied to the markets of Azerbaijan and the CIS.
Work is also under way to export these products to world markets.
President Ilham Aliyev wished the participants of the exhibition and conference every success.
