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History of Azerbaijan's Oil Sector and Caspian Oil & Gas Exhibition and Conference

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History of Azerbaijan's Oil Sector and Caspian Oil & Gas Exhibition and Conference 32 20TH ANNIVERSARY t HISTORY OF AZERBAIJAN’S OIL SECTOR AND CASPIAN OIL&GAS EXHIBITION AND CONFERENCE BAKU IS TODAY LISTED AMONG SUCH OIL CENTERS AS STAWANGER, HOUSTON AND OTHERS. The biggest event in oil and gas sector of the Caspian region - the Caspian Oil and Gas International exhibition and conference celebrates the 20th jubilee of successful activity. The high level, traditional way of conduction, stability, creativity while forming the exhibition strategy are the main features that have always differed the Baku international oil and gas exposition from other global events. The 20th anniversary of the conference and the exhibition is a result and one of the main indicators of stable growth of Azerbaijan’s economy, the country’s commitment to the policy of openness in development of the oil and gas industry as well as the evidence of the growing attention of the world community to the only one capital city of the Caspian littoral state-Baku. The major event of the region is organized by ITE Group PLC and its partner Iteca Caspian LLC. ertainly, the history of black in 1847 when the first oil fountain The independence gained in the 1990s gold is lasting for more than a appeared in Baku’s Bibi Eybat. Azerbaijani became a starting point of the ‘golden Ccentury, but namely of Azerbaijan oil played a great role during World War century’ for oil and gas sector and the is associated with the main stages of II, when Baku ensured nearly 70% of the entire national economy in Azerbaijan. production, application and refining of former Union’s oil. The first industrial After the USSR collapse, Azerbaijan oil. The event which changed the idea oil production also originates from the faced an uneasy economic situation and of oil production occurred in Azerbaijan Azerbaijani Oil Rocks field. then Nationwide Leader, Heydar Aliyev $"41*"/&/&3(:/ |]XXXDBTQFOFSHZDPN 5)"//*7&34"3:t20TH ANNIVERSARY t 33 The agreement between the State Oil Company of Azerbaijan (SOCAR) and the consortium of major foreign oil compa- nies on the joint development of Azeri- Chirag-Guneshli shelf fields called the Contract of the Century was signed four months later, on 20 September 1994. undertook a number of crucial steps for the country. Against the backdrop of the broken economic ties, political chaos and complex negotiations conducted with the oil companies for development of fields in the Azeri sector of the Caspian Sea, Heydar Aliyev takes a decision to hold the first Oil and Gas Exhibition in Baku on 24-27 May 1994. No one could assess the role of the Caspian Oil&Gas exhibition for Azerbaijan and the whole region at that period the main directions of the large scale the contract, the Nationwide Leader said better than Heydar Aliyev did. Speaking development of Caspian hydrocarbon at the signing ceremony: “It has been at the first oil and gas exhibition that reserves and opened up a new epoch the third time that we have signed a gathered the state figures of the United in the history of Azerbaijan’s oil and gas big contract within the past two years. States, Great Britain, Turkey, Russia, Iran production. Shah Deniz is one of the richest fields, discovered and explored by Azerbaijani and other countries, Nationwide Leader Speaking at the exhibition in 1995, the geologists, scientists and oil men”. During Heydar Aliyev said: “Our steps aimed Nationwide Leader said that ‘conduction the following years this field discovered at cooperation with the western oil of such a big oil and gas exhibition in Azerbaijan as a gas-rich country. companies feature both the economic Azerbaijan is by no way accidental. Azerbaijan further signed two more and political aspects. We are confident Azerbaijan, Baku has been the country of contracts: on development of Dan Ulduzu- that the further cooperation of Azerbaijan, oil, of fire since ancient times. Industrial oil Ashrafi areas (BP/Amoco plc., Unocal, its State oil company with the western production started in Baku, Azerbaijan 150 Itochu, SOCAR, Delta) on 14 December partners will be built exactly on these years ago and since that time, Azerbaijani 1996 and on development of Lankaran- principles”. oil has passed a long and glorious way”. Deniz-Talish-Deniz (SOCAR, Elf Aquitaine, The clear and definite statements of The second PSA-agreement on oil and gas Total, OIEC, Wintershall, Petrofina) on 13 the Nationwide Leader at the first Caspian on Garabagh structure was signed that December 1997. Oil&Gas Exhibition and Conference, year along with the launch of negotiations As a major event in energy sector and based on common values, meeting the on the transportation of AIOC early oil by the ACG project in two directions- an important platform for discussing national and regional interests, ensuring urgent issues in regional oil and gas formation of Azerbaijan as a reliable northern (Baku-Grozny-Tikhoretsk- Novorossiysk) and western (Baku-Supsa). sector, Caspian Oil and Gas gathers partner played a decisive role in the together the leading specialists and Further the contract allowed SOCAR to implementation of the contract of the major players in oil sector. High-ranking obtain the reliable geological information century. The agreement between the guests representing the energy countries about the structure and balance reserves State Oil Company of Azerbaijan (SOCAR) of the world gather at the exhibition of the field. and the consortium of major foreign oil and conference. In different years, the The high status of Caspian Oil&Gas is companies on the joint development of exhibition and conference was attended explained by by the fact that throughout Azeri-Chirag-Guneshli shelf fields called by such honorable guests as the Romanian history the exhibition has been held the Contract of the Century was signed State Secretary for Economy and Labor under the patronage of the country’s four months later, on 20 September 1994. Dimetr Attila, US Secretary of State for At the moment of signing, the consortium president. The leaders of different European and Asian Affairs Matthew included US Amoco, Unocal, Pennzoil, countries, including the Prime Ministers of Bryza, Minister of National Infrastructure Exxon, McDermott, British Petroleum ad Great Britain, Turkey, Norway, Presidents of Israel Benjamin Ben-Eliezer, Deputy Ramco, Norwegian Statoil, Russian LUKoil, of the United States, France, Georgia, EU Minister of Energy and Natural Resources Turkish TPAO, Delta Oil from Saudi Arabia President sent the welcoming letters to of Turkey Salih Pashaoglu, Vice Minister and the State Oil Company of Azerbaijan. the President of Azerbaijan on occasion of Energy and Mineral Resources of Twenty years ago with the launch of of the opening of the next exhibition and Kazakhstan Lazzat Kiinov, Minister of Oil this grandiose project for most countries conference. and Natural Gas of India Mani Shankar and companies Azerbaijan became the In June of the following year of Ayar, Special Envoy of the US Eurasian symbol of global partnership laid by 1996, during the next Caspian Oil&Gas Energy Department Richard Morningstar, Nationwide Leader Heydar Aliyev. The exhibition Azerbaijan signed a new contract of the century was not only the contract on development of the Shah We believe that just like in the past, first in the overall Caspian region but Deniz field (BP/Amoco plc., Statoil, Lukoil, the oil and gas industry of Azerbaijan also demonstrated example of successful SOCAR, TPAO, Elf Aquitaine, OIEC). Having occupies a worthy place in the world - rightly highlighted the principles on cooperation of Azerbaijan with the major Nationwide Leader Heydar Aliyev. foreign investors. This event identified attraction of the regional countries to $"41*"/&/&3(:/ |]XXXDBTQFOFSHZDPN 34 20TH ANNIVERSARY t If the exhibition involved only oil and gas industry development during the first years, now it covers refining, petrochemi- cals and other associated and auxiliary industries - President of Azerbaijan Ilham Aliyev. the oil and gas industry of Azerbaijan occupies a worthy place in the world. Along with the international oil and gas exhibitions, conferences in Houston, Aberdeen, Stawander over the past years, Baku, Azerbaijan has hosted the fourth international oil and gas exhibition and conference. The conduction of the Caspian Oil and Gas-97 exhibition in Azerbaijan for the fourth time proved that it had already become a traditional event. I am fully convinced that this exhibition will continue and in the following years, the scale of this exhibition, conference will expand and the future exhibitions will promote the rapid development of the oil and gas industry in the world”. The first oil from ACG field was produced on 7 November 1997 and the Sangachal terminal was commissioned in operation five days later. US special delegation envoy for Eurasian Netherlands Foreign Ministry Rene Van energy S.Boyden Gruy, Minister of Trade der Linden, Deputy Minister of Energy Right after the exhibition and and Investments of Great Britain, Lord and Natural Resources of Turkey Murat conference in July-August 1997 Digby Jones, Minister of Energy of Merjan, Minister of Energy of the United Azerbaijan signed four more oil contracts Georgia Alexander Khetaguri, Minister of Arab Emirates Mohammad bin Daen on development of the perspective Economy and Energy of Bulgaria Peter Alhamli, Prime Minister of Georgia Nika structures of Oguz (Mobil, SOCAR), Dimitrov, Deputy Secretary of the Ministry Gilauri, Commissioner of the European Nakhchivan (Exxon, SOCAR), Absheron of Energy and Natural Resources of Turkey Union for Energy Affairs Gunter Oettinger, (Chevron, Total, SOCAR) and Yalama Yusuf Yazar, Deputy Minister of Oil of Iran Duke of York Prince Andrew, Special (LUKARCO, SOCAR). Huseyn Nogrekar Shirazi, State Secretary, Envoy of Great Britain for International The Baku-Novorossiysk, Baku-Supsa Deputy Minister of Oil Industry and Energy Trade and Investments, State Secretary pipelines each with the capacity of of Norway Liv Monica Stabholdt, Minister of Norway Robin Kass, Prince of Norway 6m tonnes were launched one by one of Energy of Lithuania Arvidas Sekmokas, Hokon, US Secretary of State Hillary for the export of early oil from ACG.
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