Baku hosts 20th Caspian Oil and Gas Exhibition

Baku is hosting the 20th Caspian Oil and Gas Conference. Azerbaijani President Ilham Aliyev and his wife Mehriban have attended the opening. About 400 companies are taking part.

The first exhibition in 1994 had few attendants. Foreign companies had little information about Azerbaijani petroleum industry. Azerbaijan has accomplished its goals in energy, built independent economy and strengthened independence. The Azeri-Chirag-Guneshli contact signed in 1994 remains topical for the republic.

Azerbaijan is the first country to open the Caspian Sea for foreign companies. It formed transport infrastructure connecting the Caspian, Black and Mediterranean Seas.

Azerbaijan receives the biggest investments among CIS countries. The contract for development of the Shah Deniz Field was signed in 1996 and will make Azerbaijan a major gas-extracting state. Construction of the Baku-Tbilisi-Ceyhan pipeline allowed realization of the Shah Deniz project. Exploitation of the pipeline stared in 2006. Construction of the Baku-Tbilisi-Erzurum gas pipeline was accomplished.

Aliyev noted the role of the Trans-Anatolia Pipeline (TANAP). He called it the most important event of the year. Azerbaijan and Turkey signed the contract a month after the previous year’s exhibition. It will be part of the Southern Gas Corridor.

Ilham Aliyev and his wife observed three pavilions of the Baku Expo Center. Germany, China, Russia, Turkey and the UK are represented. Coverage of area increase by 22% and the number of exhibits by 25%. 20% of the participants are new.

British Prime Minister David Cameron said in his letter that Azerbaijani energy resources will play an important role in the European and global economy in the next years. He expressed hope that the Southern Gas Corridor will be realized to deliver Central Asian resources to Europe.

US Ambassador to Azerbaijan Richard Morningstar read President Barack Obama’s letter. It says that large investments will allow Azerbaijani resources to see international markets in a few years. Azerbaijani resources will contribute to diversity of economy, enforce law and improve the living standards.

Shah Deniz has 1.2 trillion cubic meters of gas reserves. The contract for its development was signed on June 4, 1996. Its shareholders are BP (operator with 25.5% of shares), Statoil (25.5%), NICO (10%), Total (10%), Lukoil (10%), TPAO (9%), SOCAR (10%).