Mr. Nariman Ramazanov FINA LLP Law Firm Azerbaijan Republic Panel: Natural Resources of Azerbaijan.

Slides:



Advertisements
Similar presentations
Trans Anatolian Natural Gas Pipeline Project
Advertisements

Kristine Margvelashvili MA student at International Hellenic University Black Sea Cultural Studies (Politics and Economy Stream); Erasmus Mundus Program.
Philippine Mineral Resources. Quick Facts  The Philippines is situated along the Circum-Pacific Ring of Fire, where the processes of volcanism and plate.
DFID Work on Extractive Industry Reforms in Africa
«Sysouev, Bondar, Khrapoutski» Law Firm. entitled to benefits not provided by the legislation government guarantees can be obtained at the national level.
Center for Environmental Stewardship Thomas Jefferson Institute for Public Policy Virginia Off-Shore Oil and Gas ~ Fact and Fiction April 2009.
U.S. Energy Information Administration Independent Statistics & Analysis Outlook for U.S. shale oil and gas IAEE/AEA Meeting January 4, 2014.
Ontario Petroleum Institute Ontario Petroleum Institute Brief 2015 Ontario Pre-Budget Consultation January 28, 2015.
1 Fiscal Federalism in Iraq: OIL and GAS. The oil situation: a snapshot.
Petroleum, Natural Gas, and Coal
EBRD investment in new gas infrastructure CEER Brussels, 9 November 2006.
By Marina Dessiatkina Trade Commission of the Republic of Sakha (Yakutia) March 8, 2010 By Marina Dessiatkina Trade Commission of the Republic of Sakha.
Why Oil Energy Independence May Not Be a Good Idea Dennis Silverman Dept. of Physics and Astronomy U C Irvine October 30,
There are huge oil and gas reserves on and off shore of the Caspian Sea region. Contracts worth billions of dollars had since been signed, with the newly.
EU Energy Strategy
U.S. Energy Information Administration Independent Statistics & Analysis US Extractive Industry Overview: Oil, Gas, and Coal United States.
Arguments Against Nuclear Power Development in Iran May, 2003.
11 th Session of Petro India In collaboration with India Energy Forum 11 December 2012 New Delhi - India.
AZERBAIJANI TAXES 31 May 2013Aykhan Asadov BM Morrison Partners.
NATURAL GAS SECTOR. INTRODUCTION A Brief Summary of the Industry The Overall Structure of the Market Conduct of the Firms in the Sector, Performance Influenced.
BEHIND THE BORDER ACTIONS AND APEC THE CASE OF INDONESIA Presented by Pos Hutabarat, PhD Ministry of Trade Republic of Indonesia.
Increasing Role of SOCAR in Ensuring Energy Security of Eurasia Rovnag Abdullayev, President of SOCAR VI-th Eurasia Forum KAZENERGY, 4-5 October, 2011.
MONGOLIAN MINING SECTOR
Prospects, issues, and implications of gas exploration in the Eastern Mediterranean Focus on energy developments and commercial dynamics in Cyprus Prepared.
1 Legal foundations and institutional arrangements on Energy statistics in the Republic of Azerbaijan Yusif Yusifov, Head of division Industry, transport.
بسم الله الرحم الرحیم. New Roles for Iranian companies in oil & Gas activities,Necessity of the International interactions & Sadid Industrial Group’s.
ENERGY EFFICIENCY IN THE INDUSTRIAL SECTOR: PRACTICAL SOLUTIONS.
China’s Energy Consumption Econ 286 Spring 2000 Josh Counts and Rhys James.
Azerbaijan energy potential Dr. Ingilab Ahmadov Khazar University 2008/2009.
UKRAINE: LARGEST MARKET IN EASTERN EUROPE. COUNTRY PROFILE… DID YOU KNOW?  Population 46,2 million of which 68% - urban population  Territory 603,7.
Mr. Nariman Ramazanov FINA LLP Law Firm Azerbaijan Republic Panel: Local Counsel from the Caucasus region.
Natural gas industry in Lithuania. Gas transmission and gas distribution companies in Lithuania. Gas consumption, gas consumers.
Energy Information Administration Official Energy Statistics from the U.S. Government Annual Energy Outlook 2008 Energy Information Administration December.
Caspian energy development -- t he second phase Jonathan Elkind Joint Global Change Research Institute University of Maryland.
WTO Accession Process of Republic of Azerbaijan International Conference on “Law of International trade in the region of Caucasus and Central Asia May.
Azerbaijan Country Report Presented by the Ministry of Foreign Affairs.
Azerbaijan and energy security
The External Economic Activities of the Republic of Tajikistan in 2005.
Azerbaijan Strategic Performance Unit Sangachal Terminal Presentation BP Azerbaijan Strategic Performance Unit July, 2009.
Richard Newell, SAIS, December 14, The Paul H. Nitze School of Advanced International Studies December 14, 2009 Washington, DC Richard Newell, Administrator.
BUSINESS OPPORTUNITIES IN ROMANIA A Market Briefing U.S. Commercial Service Bucharest September 8, 2010.
ENERGY SECURITY AND ENERGY UNION PERSPECTIVES FOR COUNTRY October/20/2015 CSF, Brussels BETTER RESEARCH, BETTER POLICY, BETTER REFORM
Extractives, Tax & Africa’s Development ITJA 2015 John GBENAGNON, Assistant of the Director of the Francophonie Numerique (OIF) FEMNET Member Global Youth.
REPUBLIC OF IRAQ Ministry of Industry and Minerals The State Company of Geological Survey and Mining.
Shale Gas in the United States: Recent Developments and Outlook.
Key Q: What is oil used for?
Natural Gas and Energy Reform Legislation Steve Crout Managing Director, Government Affairs American Gas Association.
Shahriyar Nasirov Research Assistant ORKESTRA, Instituto Vasco de Competitividad Analysis of Azerbaijan Oil and Gas Sector- forthcoming in Energy Policy.
Energy—What the Future Holds for State Policymakers National Governors Association NGA Center for Best Practices Estes Park 10 October 2005.
Source: Energy Information Administration
Oil & Gas Industry – An opportunity for “Make in India”
Future U.S. Energy Demand  The U.S. will consume 28 percent more oil and 19 percent more natural gas in 2030 than in Source: US DOE Quadrillion.
Mining sector of the Kyrgyz Republic
U.S. Ambassador’s Speakers Series Rio de Janeiro 10 March 2016 Geopolitics of Energy: Where do we go from here? Edward C. Chow Senior Fellow.
Brno September 30, Azerbaijan Macroeconomic Indicators 2013 GDP – 73 bln. GDP Growth – 5.8% (2013), 10 % average in Non-oil Growth –
European Energy Southern Gas Corridor to Europe
Are China’s Pipelines Ready: to meet its energy needs by 2030?
Social Responsibilities of Companies in Kazakhstan
Petroleum sector in Turkey Petroleum Engineering 2017
MONGOLIAN MINING SECTOR
“Hydrocarbons Exploration Activities Offshore Cyprus”
TRANSIT OF OIL AND GAS ACROSS TURKEY
Cross-border Infrastructure Projects
ENERGY SECTOR IN MONTENEGRO
THE CURRENT SITUATION OF ENERGY SECTOR
The Outlook for Energy and Natural Gas Markets
Assessing the Economic Implication of Energy Insecurity in Nigeria
Russian Subsoil Legislation
Business Update 1H 2019 results
Presentation transcript:

Mr. Nariman Ramazanov FINA LLP Law Firm Azerbaijan Republic Panel: Natural Resources of Azerbaijan

NATURAL RESOURCES OF AZERBAIJAN:

NATURAL RESOURCES OF AZERBAIJAN: 1. Oil: - Oil is the main national wealth of the country. Main oil fields are on Apsheron Peninsula and the Caspian Shelf; - Azerbaijan is one of the world's oldest oil-producing countries. The country's oil industry experienced a boom at the end of the 19th and the beginning of the 20th century. During World War II, the Soviet Republic of Azerbaijan produced approximately 500,000 barrels per day; - Oil production in Azerbaijan dropped off dramatically in the post-war years; -The years of independence marked a new era of oil exploration and production (in 2009 oil production is expected to be 60 million tons and 51 million coming only from “ACG” offshore bloc); - Oil industry still is the leading sector of the country’s economy. (The most important event of the previous decade is the first “PSA” - “Contract of the Century” on joint exploration of Azeri, Chirag, Guneshli fields (ACG), located in the Azerbaijani sector of the Caspian Sea was signed between SOCAR and 11 foreign oil companies. At present there are more than 27 PSAs on “offshore” and “onshore” oil fields);

NATURAL RESOURCES OF AZERBAIJAN: 1. Oil (continuation): -BTC (Baku-Tbilisi-Ceyhan) was founded to implement the construction of the main pipeline. The partner companies involved in the construction are SOCAR, BP, Unocal, STATOIL, TPAO, ENI, Itochu, Delta Hess, TFE and INPEKS. Azerbaijan has undertaken 25% of the project financing. Total costs of “BTC” achieved the level of $5 billion); -Kazakhtan is going to join “BTC” and will sign and intergovernmental agreements soon..; -More than $20 billion have been invested in oil sector of Azerbaijan and more than $7 billion only for ACG during the last decade. (according to expert’s estimates, if the world prices remain at $50\per barrel level Azerbaijan will get more than $140 billion within the 20 years period).

NATURAL RESOURCES OF AZERBAIJAN: 2. Natural Gas: Azerbaijan has in some 11 to 30 trillion cubic feet (Tcf) of proven natural gas reserves (depending on the source consulted). (However, there is insufficient infrastructure to move associated gas from many of the Caspian offshore oil fields and some of it is being flared); Currently, Azerbaijan is a net importer of natural gas. In 2001, Azerbaijan imported 125 billion cubic feet of Russian natural gas, of which 109 billion cf were supplied by “Itera” and the rest was supplied by TransNafta. SOCAR has an exclusive contract with Itera to purchase gas supplied through the Shirvanovka-Hajigabul pipeline for $52 per 1,000 cubic meters;

NATURAL RESOURCES OF AZERBAIJAN: 2. Natural Gas (continuation): It is expected that Azerbaijan will become a net exporter of natural gas in the future as the Shah Deniz field is developed. Azerbaijan has signed agreements with Statoil and BP to develop and export natural gas. Azerbaijan could have an annual natural gas production of billion cubic feet by 2010; Azerbaijan signed an agreement with Turkey in March 2001, under which it will supply 3.1 trillion cubic feet of natural gas over a 15-year period, starting from The current schedule is a little bit delayed and calls for 233 billion cubic feet each year from 2007 to 2018.

NATURAL RESOURCES OF AZERBAIJAN: 3.Other Natural Resources: Azerbaijan has no significant coal deposits, nor any domestic coal production. Azerbaijan consumes only a small amount of coal and consumption has declined from over 26,400 tons in 1992 to just 1,100 tons in 2000; Azerbaijan is, however, rich in iron and aluminum ore, pyrite, molybdenum, arsenic. The deposits of polymetalic ores on Filizchay (Greater Caucasus) in the upper part of Belokanchay valley are of commercial importance. The richest deposits of iron ore (Dashkesan) and alunite (Zaglic) are in the mountains of the Lesser Caucasus; Nearby, in the Dashkesan-Ganja district are considerable deposits of cobalt ore and pyrite;

NATURAL RESOURCES OF AZERBAIJAN: 3.Other Natural Resources (continuation): Nakhchivan is rich in salt and poly-metal. The salt deposits in the Negram field are estimated at billion tons. Molybdenum is extracted in Paragachay and arsenic ore in Negram. Azerbaijan also has mineral deposits for use as building materials. On the slopes of the Lesser Caucasus marble is extracted, though its quality is inferior to Carr marble. Deposits of gravel, sand, lime, fire-proof and brick-red clay and loam are being worked on the Apsheron Peninsula. The deposits of construction stone in the Republic are estimated to 300 billion tons (Gyuzdeck, Mardakyan, Dovletyari, Dilagarda, Shahbulag, Naftalan, Dash Salakhly) and some 24 millions tons of facing stone (Gyulbakht, Dashkesan,Shakhtakhty,Kilably); The number of hot and mineral springs of Azerbaijan runs into the many thousands. The best known springs are at Istisu, Turshsy, Badamli, Galalty, Shikhburnu, Surakhany.

NATURAL RESOURCES OF AZERBAIJAN: 4. Regulation of activities in the sphere of Natural Resources in Azerbaijan: The whole package of Natural Resources and Energy related legislation has been adopted: Law “On Nature Protection and Nature Usage”, February 25, 1992 Law “On Usage of Energy Resources, May 30, 1996; Law “On Subsoil” February 13, 1998; Law “On Power Engineering” April 03, 2998 Law “On Gas Supply” June 30, 1998 Law “On Energy” November 24, 2998 Law “On Heat and Power Stations” March 06, 2000 “Oil&Gas” Law has not been adopted yet, therefore, Azerbaijan still uses PSAs with foreign investors and oil companies…

NATURAL RESOURCES OF AZERBAIJAN: 5. Investments made and Legal servives required in the sphere of Natural Resources in Azerbaijan: During the last 12 years more than 1150 foreign legal entities (FLEs) involved in oil & gas sector of Azerbaijan established their branch or representative offices in Azerbaijan (96% located in Baku) These FLEs are established for rendering various kind of services to PSA contractors and subcontractors in Azerbaijan (engineering, waste management, catering, hotel, transport, etc. services) and by that create large client basis for local counsels; Major legal services required by the clients (mainly by FLEs): Incorporation; Tax; Customs (Import&Export regulations); Labour; Transport; Civil (lease, purchase, etc.); litigation; etc…; Role of local counsel in involvement of foreign investments in native economy: (Legal services; reliable source information on local customs&traditions, business environment, political regime, selection of local partner; best advisor, etc..)

Thank you for the attention! Nariman Ramazanov Managing Partner\FINA LLP Law Firm 14 Kerpich str. # 1 AZ1022 Baku\Azerbaijan Republic Tel.: ( ) Fax: ( )