25th Anniversary of Oil & Gas - Contract of the Century 25 Years Equal to the Century The Place to do Business in the Caspian Short-term Pain for Long-Term Gain – SDGs as a Framework Always Remain True to Yourself and Your Internal Culture Issue 35 Credits A Word From Executive Director of AmCham AmCham Executive Director: Dear members, As this September we celebrate the 25th anniversary of Natavan Mammadova “The Contract of the Century”, this edition of our quarterly magazine is devoted to this remarkable occasion. Editor: This has been one of the strategic contracts in the history of Aykhan Nasibli Azerbaijan, which create positive spillover to regional politics and energy security. Conscious of political and economic Articles contributed by: circumstances back to those days, we all realize that it has not been an easy task to sign this contract. Khoshbakht Yusifzade Well educated and highly skilled people are key for success Bakhtiyar Aslanbayli of any endeavor. This is with a deep gratitude to Mr. Ramin Isayev Khoshbakht Yusifzade, who has been instrumental in development of oil industry Vugar Samadli in our country and witnessed all troublesome process of negotiations. We have a Gunel Farajova pleasure of providing you with a flashback to the memorable history. Farid Isayev The Contract of the Century, which can be considered as a national strategy for success, has been extended for the next 30 years. It carries not only immense Richard V. Smith, Yunis Salayev social and economic impact to the country, but also serves for the energy security Aleksey Tushev, Valida Bashir of the region. Currently, we are aiming to diversify economy. As President H.E. Leyla Novruzova Ilham Aliyev said, the aim is to “turn black gold to human capital”. In line with this statement, uniting almost all key players in oil and non-oil industry under its Advertisers: umbrella, AmCham stands ready to contribute further to the development of both BP oil and non-oil sectors of the economy, by making available to all stakeholders the Azerfon huge knowledge, expertise and experience accumulated in the Chamber. We congratulate all Oil Workers and Azerbaijan for this glorious journey and all the Turkish Airlines achievements we take pride. SOCAR AQS Best regards, Natavan Mammadova Publisher: American Chamber of Commerce in Azerbaijan Editor’s Comment Tel: (+994 12) 497 13 33 Dear friends, dear members. Fax: (+994 12) 497 10 91 Welcome to the next edition of IMPACT Azerbaijan magazine! www.amcham.az www.impact.az September is usually unique with start of education, schools. This September, we celebrate the 25th anniversary of “Contract of the Century”. It has been a special event Advertising opportunities: not only for Azerbaijan, but for the region as well as the Please contact the Editor at energy security, in large. Bearing this in mind, oil and gas [email protected] have always been an exciting topic and a top priority in the national agenda of our country. As a result, being rich in The articles in IMPACT Azerbaijan energy resources paved the way for shifting economy from express the opinions of the authors and the scratch to a new level of development. do not necessarily reflect the position of Within this edition you will be able to read special interviews and articles from the American Chamber of Commerce in leading company representatives and experts. Also, using this opportunity I would Azerbaijan like to thank for our advertisers – Azerfon, Turkish Airlines, BP and SOCAR AQS. Enjoy reading! Sincerely, Aykhan contents IN FOCUS 4 26 25 Years Equal to the Century The 2018 BDO 600 CEO and CFO Compensation Trends in The Energy (Oil & Gas) Industry Khoshbakht Yusifzade Richard V. Smith, STS GES Managing Director First Vice-president, SOCAR BDO Phoenix Office Yunis Salayev, Managing Partner, BDO Azerbaijan 9 The Place to do Business in DEVELOPMENT & EDUCATION the Caspian 29 The Most Popular Industry – Opinion of Youth Bakhtiyar Aslanbayli Vice President for Communications, External Affairs, Strategy & Region, BP Azerbaijan-Georgia-Turkey Aleksey Tushev 12 Chemistry and physics teacher, Dərs Evi SOCAR AQS Continues Innovative Valida Bashir Traditions of Azerbaijani Drilling Math teacher, Dərs Evi Industry OUR PROUDS Ramin Isayev 32 Always Remain True to Yourself CEO, SOCAR AQS and Your Internal Culture 16 A Strong Committment - “Converting Black Gold into Human Capital” Special Interview with Leyla Novruzova GBS Global HR Director Vugar Samadli Chief Executive Officer, Nobel Oil Services AMCHAM AZERBAIJAN 34 19 About Us Short-term Pain for Long-Term Gain – SDGs as a Framework Special interview with Gunel Farajova 35 Business Events Head of Climate Change and Sustaibility services, EY Azerbaijan and Georgia 22 Technological Disruption in Oil & Gas Industry: Opportunity or a Threat? 36 Amcham Members’ Luncheon Farid Isayev Director, KPMG in Azerbaijan 2 Issue 35 Where Business Meets Benefits Join the Turkish Airlines Corporate Club and receive exclusive member benefits. Business travel, meet perks. With Turkish Airlines Corporate Club membership, corporate travelers enrolled in the exclusive program receive special perks and benefits. And, there’s nothing to pay and no commitments, making this a value-added program you should join today. FRONT END DISCOUNTS As a member of Turkish Airlines Corporate all flights to/beyond Turkey. There is also no Club, you will receive exclusive front end penalty for cancellation or no-show for almost discounts on fares for to/beyond Turkey all booking classes. travel. There’s also the option to earn free tickets if you meet an annual flight quota TURKISH AIRLINES CORPORATE CLUB CARD and the opportunity to earn upgrades. With your membership card, you can check- in through business-class counters and BAGGAGE ALLOWANCE gain access to lounges even when flying in Ease worries about fitting all the economy. Additionally, you still earn Miles in necessities for your business trip as a your Miles&Smiles frequent flyer account. Turkish Airlines Corporate Club member. Don’t hesitate. Find out more on how business Enjoy an enhanced baggage allowance on meets benefits with the Turkish Airlines international flights. Corporate Club. Benefits vary by country. FLEXIBILITY Apply today at: As all corporate travelers know, changes corporateclub.turkishairlines.com happen. As a member, you will have the flexibility to change flight routes and dates for in focus 25 Years Equal to the Century Khoshbakht Yusifzade First Vice-president SOCAR the rich oil fields in the Azerbaijani sector of the Caspian Sea together with foreign oil companies wasn’t excluded. Foreign oil companies had already begun negotiations with the Azerbaijani government since 1990. Taking into account the interest of famous foreign companies in the oil fields in the Caspian, the USSR government decided at that time to allocate a certain reservoirs to be used with these companies. At the suggestion of the Caspian Oil and Gas Production Association (PU), the Azerbaijani government announced that it had selected the Azeri field to be operated jointly with foreign companies.According to the decision of the Council of Ministers of the Soviet Socialist Republic of Azerbaijan and the Ministry of Oil and Gas Industry of the USSR dated to January 18, 1991, the Caspian Sea Oil and Gas Company had to establish a joint institution with foreign companies and carry out joint exploration and use of the Azeri field. In order to conduct a tender for the purpose of establishing a BM, an organizational committee of 27 experts was established under the leadership of the First Deputy Minister of Oil and Gas Industry of the USSR, Boris Aleksandrovich Nikiti and Deputy The “Contract of the Century” is remembered Chairman of the State Planning Committee of the Republic of Azerbaijan, Rafik Mirzayev. A package of information on the in his eyes by Khoshbakht Yusifzade, Azeri field was sent to 16 foreign companies, including seven the First Vice President of SOCAR, an American companies in order to participate in the tender. Only 6 companies responded to it. academician, an elder of the Azerbaijani oil The tender commission analyzed the proposals of these industry, who was a party to negotiations on companies and concluded the tender in June 1991. The American company “AMOKO” was declared the winner. At this popular agreement: the same year the delegation of the Republic of Azerbaijan visited the USA in order to inform “AMOKO” about winning Mr. Yusifzade, it is best to congratulate you first at SOCAR the tender, to be closely acquainted with its management on the occasion of the 25th anniversary of the “Contract and activities, as well as, with the US oil industry, especially, of the Century”. Because today you are one of the key exploration and production of offchore oil in this country. I was figures in implementation of this famous contract. How also one of the members of the delegation led by Secretary of did you remember that period? the Central Committee of the Communist Party of Azerbaijan, Thank you. I also want to congratulate all Azerbaijani Fuad Musayev. My travel companions were Natig Aliyev and oil workers on this occasion. So, the fate led us that “The Rauf Bayramov, who was then responsible for the Central Contract of the Century” had taken place in front of my eyes. Committee of the Communist Party of Azerbaijan. It was my Increasing oil production was an urgent issue in the late first trip across the ocean. We were in the US from June 23 to 1980s. The main reason for this was that it was impossible July 5. As we arrived in Houston on June 24, we introduced to work in the deeper part of the Guneshli field, discovered the protocol of the competition committee on the AMOKO’s in 1979, the Chirag discovered in 1985 and the Azeri field winning in tender to Robert Blantona, Vice President of discovered in 1987.