2. Azerbaijan and energy security
by Ambassador Tahir Taghizadeh
Azerbaijan, country between East and West

3. Outline: 1. General information, periods of modern history and main features 2. Oil and gas industry 3. Energy security, challenges and future strategy

6. The Republic of Azerbaijan
capital: Baku
territory : km2
population:
official language: Azerbaijani
state structure: Presidential republic
currency: Azerbaijani manat (AZN)
1 $ AZN

7. Periods of modern history
1918 – 1920 Azerbaijan Democratic Republic
1920 – 1991 Azerbaijan Soviet Socialist Republic
Since Republic of Azerbaijan

8. Main features of Azerbaijan
Geo-strategic location at the crossroads between East and West, South and North
Rich mineral resources, especially oil and gas
Fastest growing economy
Diverse nature

9. History of oil industry
First period: 1847 – 1920
first industrial production of oil
construction of the first oil refineries
construction of the first oil pipelines

10. History of oil industry
2. Second period: 1920 – 1949
nationalization of oil industry
increase in oil production which made up 76 % of the total volume of oil production in USSR

11. History of oil industry
3. Third period: 1949 – 1991
commissioning of the Neft Dashlary (Oil Rocks) filed which was established on the Estacade in the open sea for the first time in the world
expansion of offshore exploration works
development of oil production infrastructure

12. History of oil industry
4. Modern period: since 1991
opening up of the oil industry to foreign investors
conclusion of the Contract of the Century
construction of Baku-Tbilisi-Ceyhan, Baku-Tbilisi-Erzurum pipelines

13. Oil and gas pipelines of international importance
1. Baku-Tbilisi-Ceyhan
length – 1769 km, capacity – 50 million tons per year
operation started – 25 May 2005
2. South Caucasus Pipelines
length – 692 km, capacity – 20 billion m3
operation started – in 2006

14. Contribution of Azerbaijan to Europe’s energy security
diversification policy
Memorandum of Understanding between EU and Azerbaijan on Strategic Partnership in Energy Area (November 7, 2006)

15. Contribution of Azerbaijan to Europe’s energy security
Memorandum of Understanding between Azerbaijan and the US Government on Dialogue on Energy Security (March 22,.2007)
Vilnius International Conference on Energy Security (October 10-11, 2007)
Joint Declaration between the President of Azerbaijan and the President of European Commission on the Southern Gas Corridor (January 13, 2011)

16. Challenges
Main problems impending final definition of legal status – differences in positions of coastal states
Azerbaijan backs centerline principle, together with Kazakhstan and Russia
Iran claims 20 % of the sea for each coastal state
Turkmenistan seems to support Iran’s stance

17. Future strategies search and explorations of new fields
involvement of discovered fields in full-scale development
construction, reconstruction and modernization of oil-gas production, transportation and refining systems

18. Future strategies
identification of directions of development of non-oil sector of industry
expanding the use of alternative and restored energy sources
widely use achievements of science and techniques and advanced experience

19. THANK YOU FOR YOUR ATTENTION
AND WELCOME TO AZERBAIJAN