Ilham Aliyev: "Considering the large gas reserves in Azerbaijan, this wealth will be sufficient for the next decades and a century"

- Ladies and gentlemen,

First of all, let me express my gratitude to the Hungarian side, receiving us and Prime Minister Durchan for organization of such a grandeur event. I am confident that the discussions, we held today, will ensure a greater understanding between all participants of the projects including suppliers, transit countries and consumers and will allow move forward.

Azerbaijan is playing its role in the energy security of the region and Europe. The projects, we have launched and successfully implemented through the past

years, have already created a new situation in the regio. For the first time in the world, the Caspian energy sources are supplied to the western markets by alternative ways. The oil and gas pipelines, we have laid in cooperation with the partners, enable Azerbaijan to diversify the routes of supply, meet our economic and social needs and conduct economic and political reforms effectively.

In other words, the energy policy of Azerbaijan has already become effective for our country, our people, our neighbors and the whole region. Today, while speaking about the new projects of transportation for alternative sources in the Caspian Sea, we all recognize that the foundation of this achievement was laid in the mid 19902. The BTC oil and Baku-Tbilisi-Erzirum gas pipelines were built. This step opened doors of the way leading to opportunities. After completing these projects, we have conducted the whole necessary work. If you look at the map of pipelines, laid by Azerbaijan, you will see that the oil and gas pipelines are laid in all directions. Seven oil and gas pipelines that we have today allow us to transport the produced energy sources in different directions. They allow us not to depend on a single route and a single transit way.

We are aware of the concerns of consumers, who especially suffer from the disputes between the producing and transit countries. As a reliable partner and a friendly country as well as a side, fullfilling all promises through the years of independence, Azerbaijan has taken the steps, it has declared. In the future we are planning to play a more active role in diversification. Diversification is important for all of us, including for producing countries. if we depend only on one route, we may face problems and not reach a fair price. But if there are different variants, we will feel safer.

Considering large gas reserves in Azerbaijan - by minimal calculations, their volume is on the level of 2 trillion cubic meters - this wealth will be sufficient for us through the next decades and a century. Certainly, we should plan the rates of our production, our investment programs in compliance with the markets and relations with the transit countries. The more countries will buy gas from Azerbaijan, the better it will be for Azerbaijan and for these countries. This is a variant profitable in all senses. The projects, we have launched and are successfully implementing, demonstrate that when the interests of all participants coincide, when they work in a single team and join efforts, and when every country contribute to the common business, then we attain success.

As for Nabucco, Azerbaijan always supported this project. Today we would like to state once more that we will continue our support. This is clearly fixed in the declaration, prepared for the purpose. I would like to add that several months ago we discussed different projects in the Caspian ea region, including

Nabucco, during an energy summit in baku and supporting it, we expressed our political will in the adopted declaration.

I think it is time to unite interests of all participants - suppliers, transit countries and consumers. Naturally, in this case we must attain several goals.

First of all, we must ensure reliable supplies, as consumers do not care who is responsible for the cutting gas supplies to their homes. They just need gas, they have paid for gas and have a right to consume it. Second, a reliable route of supplies. We must realize that the more energy sources pass through the territories of the transit countries, the more profit they gain from it. At the same time price must also be fair, for unlike oil, gas price is regulated by a free market. Sometimes, we witness different approaches of the gas producing countries to different consumers.

As for Azerbaijan, we have already spoken for meeting the needs of our consumers and the spirit of good partnership have allowed us to attain success. I consider that taking into account all these facts and the concern in Europe regarding diversification of supply sources, we will be able to attain success in using giant energy sources of our region.

I would like to touch upon one more issue. When discussions on Nabucco started, Azerbaijan was not viewed as one of the suppliers. At that some another country was viewed as a source of supply. Frankly speaking, at that time it was a correct decision as at that period the volumes of gas extracted in Azerbaijan were not sufficient even more meeting our own needs. But the situation has changed. Azerbaijan is already considered a transit country and the potential primary source of supplies. Owing to such giant reserves and modern infrastructure, facilities for transportation and the growing volumes of gas extraction, naturally, we can seriously work at the issues of mutual concern. I am sure that we will attain success by uniting all interests.

Due to the opinion, voiced by my friend, Prime Minister Durchan, I would like to note that he war fair to say: "Such countries as Azerbaijan do not want to be viewed just as sources of crude". It was in the past. At that time we lived within the Soviet Union and rich energy sources of the country were considered the supply basis. Large volumes of oil and gas were produced in Azerbaijan. Yet after our country gained independence we did not benefit from it. We had only damaged infrastructure and exhausted oil and gas reserves, as well as the economy in depression. That was the heritage of our people in 1991. We make great steps, restored cooperation with foreign partners. Thus, today the production volume allows our country not to depend on anyone. As for our participation in Nabucco, certainly, we would like to see additional aspects of our cooperation. We do not need financial support. We need closer integration, more programs with the European Union, joint efforts, owing to which problems are settled and effective partnership. There is a good basis for the purpose. I am sure that energy projects will strengthen this partnership.

Our energy policy and philosophy is that the energy issues should unite peoples. The energy issues can not be used as a tool of political pressure and blackmail. I am sure that our consumers and transit countries can also recognize that our policy, experience and practical steps, undertaken by Azerbaijan, prove that the policy aimed at partnership and rapid financial results, will be productive.

I would like to thank the receiving party for organization of such an important event again. I would like to say once more that Azerbaijan is loyal to the policy of diversification, strong partnership with the European union and Euroatlantic structures. We do everything possible for the advancement of this project.

Thank you very much.

AzerTac