Ilham Aliyev: Oil production is expected to reach 52 million tons, gas - about 30 billion cubic meters in 2010 - PHOTOS

"This exhibition, which is traditional and important for Azerbaijan, is organized at the new exhibition hall in 2010. Today we also celebrate the opening of a new exhibition center," Azerbaijani President Ilham Aliyev said in Baku, addressing the 17th International Caspian Oil and Gas Exhibition Incorporating Refining and Petrochemicals.

The Azerbaijani President said it is significant that the first exhibition, held at a new center, is devoted to oil and gas of the Caspian Sea. "Because it has a special place amongst the events held in contemporary Azerbaijan," said Aliyev.

"First time, this exhibition was held in 1994. At that time, few companies wished to conduct exhibitions in Azerbaijan. Azerbaijan was a new, independent state and there were different opinions about Azerbaijan's future. Therefore, conducting the exhibition in 1994, and at the same time, starting realization of Azerbaijan's oil strategy was an important event. So, I think it is a fair situation that the first exhibition held at this grand, beautiful Baku Expo Center is devoted to oil and gas of the Caspian Sea," said Aliyev.

President said Azerbaijan was on the verge of big affairs in 1994. Back then, country's economy faced big difficulties, and steps were taken in the country towards stability. There was not an unambiguous vision for the future of Azerbaijan in 1994: in what way the country will develop, how the economy will be formed, in what direction Azerbaijan sees the path of its strategic development.

"The country had to tackle all these issues. And the strategic choice made in those years ensured today's successful development. The new oil strategy of Azerbaijan, successful policy of Azerbaijan's integration into the international community, economic reforms, huge foreign investments in the country's economy started particularly in those years, - all these factors have led to current development, today Azerbaijan is a country successfully developing at an international level," Aliyev noted.

"We all know that if the National Leader Heydar Aliyev would not take certain steps in 1994,  the Contact of the Century would not be signed, perhaps Azerbaijan's development would take place in a completely different direction," said Aliyev.

According to the President, signing the Contract of the Century, Azerbaijan not only opened the rich resources of the Caspian Sea for foreign companies, but also ensured long-term and successful development of the country.

"We had large and extensive plans in 1994 and also we knew that our way towards achieving the goals will not be smooth. Azerbaijan successfully passed a big test and successfully solved the tasks. The projects to attract investments, successful relations established with foreign companies based on the mutual interests, increasing production, ensuring Azerbaijan's development, construction oil pipelines and transporting natural resources to world markets via these pipelines demonstrate the realities of contemporary Azerbaijan," said Aliyev.

"Today we can say with great pleasure that Azerbaijan's economy does not particularly depend on the oil factor, despite that the oil and gas factor ensure the economic interests of Azerbaijan, strengthen our position in the world for years to come. In general, this factor will play its role to improve welfare of the Azerbaijani people," said the President.

"Azerbaijan's non-oil sector is rapidly growing. Particularly oil policy and strategy provided a boost to this. And the successful implementation of the oil strategy presented Azerbaijan to the world as a reliable partner," Aliyev stressed.

According to the President, Azerbaijan has been successfully cooperating with foreign companies for already 16 years. "This cooperation has been built based on mutual interests and brings high benefits both to foreign partners and Azerbaijan," said the President.

Aliyev said all efforts were made to implement these plans. "And I believe that the next stage of Azerbaijan's development will be successful as well," said the President. "After signing the Contract of the Century in 1994, a contract was concluded on Shah Deniz gas field in 1996."

"The gas factor had not such a significant place in the world oil and energy policy in those years, and it was not so easy to draw investments and loans in this project. But I can say that some big changes have been made to the world energy policy today. Gas factor began to play a larger role and ensure not only economic interests. Furthermore, particularly the gas factor has a significant impact on energy security issues in some cases," the President said.

"Azerbaijan is an ancient oil region. The oil was first produced in Azerbaijan with industrial method. Oil from the offshore fields was extracted first in Azerbaijan," said the Head of State.

"Celebrating the 65th anniversary of the victory over fascism and looking back, we saw that if had it not been for the Azerbaijani oil and hard work of Azerbaijani oilmen, the results of this war could be different. So, Azerbaijan has long ago asserted itself in the world as an ancient oil region," the President said.  

"We, as an independent country, as an independent Azerbaijan, had to assert and present ourselves again, and we successfully did it. Our oil policy is quite open, clear and sincere. We fulfill all our commitments. We, as reliable partners, successfully cooperate with the worldwide energy companies," said Aliyev.

According to the President, State Oil Company of Azerbaijan (SOCAR) is one of the world's leading companies today and successfully cooperates with other leading companies, and also introduces new modern experiences. Currently Azerbaijani companies make huge investments in other countries. Azerbaijani companies make investments estimated at billions, and this process will continue in the future.

"We faced other tasks in mid 1990s - rapidly carrying out work on Azeri-Chirag-Guneshli field, building pipelines, including gas pipelines, and all these tasks were implemented. Azerbaijan's oil and gas not only cover country's needs today, but also provides large export resources," said the President.

According to Aliyev, oil production in Azerbaijan is expected to reach 52 million tons, natural gas - approximately 30 billion cubic meters this year. It is three times more than the domestic demand of Azerbaijan.

"Azerbaijan exports its energy resources in various directions via its oil and gas pipelines. And our geography of exports expands each year. I am completely confident that we will enter new markets, because the new markets have a demand for Azerbaijan's natural resources. And our interest is to maximally realize our oil and gas potential," said Aliyev.

"We can say the volume of current production is even more than our export opportunities. But we must ensure equality between our production, domestic consumption and export opportunities. And we certainly need new markets or it needs to expand existing markets to achieve this goal. Azerbaijan pursues purposeful, exact and targeted policies in this regard. Azerbaijan is one of the countries that is not dependent on any direction particularly due to this policy. We have three oil and four gas pipelines, which fully provide energy diversification, and we have all facilities to expand the export of our energy resources in any desired direction," said the President.

"The current work carried out in Azerbaijan and technical work done based on this will increase our gas export opportunities. We make huge investment in this sector and this investment will justify itself, because it will provide long-term successful development of Azerbaijan," said Aliyev.

President also pointed out, that Azerbaijan is a very attractive country for investment.

"About $82 billion has been invested in country's economy since 1995, of which, almost half was invested in the oil and gas sector. Most investments were made in oil and gas sector in early years of our oil strategy. Some experts were concerned that this could lead to "Dutch disease", there were fears that Azerbaijan's economy may develop unilaterally. However, our purposeful policies and concrete steps showed that the path chosen by Azerbaijan is true," said the President.

According to Aliyev, Azerbaijan's economy is multi-vectoral today.

"Half of the investment portfolio invested in non-oil sector shows that this sphere is very attractive in Azerbaijan. Both foreign and domestic investments, funds from the public budget and private sectors provided to non-oil sector have created a new situation. Azerbaijan less depends on oil and gas factor today, and this dependence will decrease even more in the future," said the President.

The statistics of Azerbaijan's economic achievements clearly demonstrate this. "If to look at figures of 2009, we can see the example of work carried out in recent years in Azerbaijan. Because world oil prices dropped by 3-4 times in 2009. Economic and financial crisis negatively affected almost all countries. Despite this, Azerbaijan's economy grew by more than nine percent last year. The sharp decline in oil prices had not a negative impact on Azerbaijan's development. We implemented all social programs and infrastructure projects. The opportunities were more mobilized, and we could successfully survive this difficult situation," said Aliyev.

According to President, Azerbaijan's economy is developing rapidly. "Our oil strategy is the base of all these issues, along with the purposeful economic policies," said the President.

"I again return to the period of 15 years ago. If brave and deliberate steps counted for the future would not be taken in those years, Azerbaijan's situation could be quite different today. Both the economic and political situation would be different, because it is not secret that when economic opportunities are limited, it is very difficult to raise political initiatives, protect national interests and pursue principled independent policy," said Aliyev.

According to President, Azerbaijan's economic independence, huge monetary reserves, successful development of economy provide additional strength.

"We need this force today, because we are a young and independent country. Despite that Azerbaijan's economy has completed the transition period, we are no longer a country with transition economy, we are a country with developing economy, and the international financial organizations see and confirm this. Improving the credit rating of Azerbaijan during the crisis year is demonstrative in itself, and using all these opportunities, we must look at the future, should count for future plans already today. We are doing just that. Like energy, oil and gas sector, we have long-term strategy, plans, package of concrete steps in non-oil sector as well," said the President.

"Therefore, the situation in terms of political stability is positive in Azerbaijan, which overcome the crisis with minimal losses. The general situation increases the flow of investments into the country. Currently the investments in Azerbaijan are made not only in oil and gas sector, but also in tourism, infrastructure, hotels, social facilities, beautiful exhibition halls," said Aliyev.

According to the Head of State, this exhibition hall, which differs with its beauty and functionality, is one of the beautiful halls in the world.

"We organize this event at this beautiful, grand hall today. Investments in Azerbaijan's economy serve the Azerbaijani people. The more money is invested, the more our economy will grow, new jobs will be created and human welfare will improve. We will develop our policy in this way. Additional steps will be taken to ensure maximum diversification of economic potential. With regards to oil and gas sector, we have been able to achieve all desired goals so far - oil and gas pipelines, production, investment, entering new markets, and we expect even greater investments today," said Aliyev.

According to President, a new large-scale project was launched on the Chirag field recently.

"I hope we will soon start a big project - "Shah Deniz-2". I think there is every possibility to do this, and if we achieve this, at least $20 billion will be invested in oil and gas sector of Azerbaijan only as part of this project over the next years. And perhaps, an equal amount of these investments will be made in non-oil sector," said Aliyev.


/Trend/

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Ilham Aliyev attended the opening ceremony of the 17th International "Oil, Gas, Refining Petrochemicals" Exhibition and Conference

The President delivered a speech at the opening ceremony

President Aliyev at the 17th International "Oil, Gas, Refining Petrochemicals" Exhibition and Conference

Photos: /AzerTAc/