Azernews.Az

Azerbaijan is ensuring not only its own energy security but also that of a number of other countries, President Ilham Aliyev said Tuesday as executives of world energy giants gathered in Baku for an annual oil and gas show.
Addressing the opening of the 15th Caspian Oil and Gas, Oil Refining and Petrochemicals exhibition and conference, Aliyev said that given the increasing significance of energy security worldwide, the Caspian region which is flush with hydrocarbons is of tremendous importance.
"Azerbaijan is the first country in the region that secured the development of its own oil sector," he said, adding that the role the resource-rich South Caucasus republic is playing will further increase in the future with the growing supplies of gas to world markets.
The president went on to say that the key objective facing his country today was to turn incoming oil revenues into human capital, achieve the development of the non-oil sector, solve all outstanding social problems and turn Azerbaijan into a developed country.
"Heydar Aliyev's [the nationwide leader, former president] oil strategy has accomplished its goals, and we have a very developed oil sector which is yielding considerable profits. The country's currency reserves exceed $10 billion, and they are set to grow further," the head of state said.
Aliyev recalled that the Azerbaijan Republic accounted up to 70 per cent of the entire bulk of oil produced in the former Soviet Union. However, the republic's oil industry faced a downturn in the early years of independence. Annual oil production went down to 8-9 million tons and gas output considerably dwindled, which necessitated major investments to revive the oil industry.
"We managed to attract investments and accomplish this. This year, oil production will make up 50 million tons and rise to 60 million tons next year. We have also built several pipelines and thus ensured [the country's] access to world markets. The oil and gas resources available in Azerbaijan will be enough for at least 100 years."
President Aliyev emphasized that after the development of the biggest Azerbaijani offshore gas-condensate field Shahdaniz began, Azerbaijan became an exporter of gas, turning into one of the few such countries in the world.
"With the increasing gas output, the geographic scope of exports will grow. Azerbaijan is ready now to participate in projects on supplying gas to separate countries and regions on self-lucrative terms."
The head of state emphasized that no disputes have arisen throughout 14 years of the country's cooperation with foreign companies, which is one of the key factors in successfully doing business.
Then speaking US special envoy for European affairs Boyden Gray read out George Bush's letter of congratulation. Bush wrote that the United States took pride in cooperating with Azerbaijan, which has great potential for turning into a key exporter of gas to Europe, alongside other Caspian and Central Asian states.
Bush expressed hope that the volume of Kazakh oil transit to European markets through Azerbaijan would increase, while Georgia and Turkey would facilitate environmentally-friendly transportation of these resources. Kazakhstan will beef up oil exports to world markets after 2011 with the start of production from its major Kashagan field. Part of the crude will be pumped through the Baku-Tbilisi-Ceyhan (BTC) main export pipeline, Bush said.
British Prime Minister Gordon Brown wrote in his message that Azerbaijan has turned into a leader in the region. He indicated that Britain was interested in further expanding its collaboration with the country.
The four-day show was traditionally organized by Iteca Caspian, the regional partner of British ITE Group PLC. The show displays the latest achievements and technologies in the fields of oil and gas, petrochemicals, mechanical engineering, oil refining and transportation. Over 380 companies from 33 countries are displaying their products. New participants account for 21 per cent of the exposition area. 85 per cent of the space is designated for world-famous companies. 40 per cent of the area is taken by CIS companies.
It is reassuring that the number of local companies represented at the show is growing by the year. This time, their participation accounts for 30 per cent.
The opening ceremony was attended by up to 500 high-ranking representatives from over 20 countries, including a broad delegation from the U.S headed by Boyden Gray that includes US Deputy Assistant Secretaries of State Matthew Bryza and Steven Mann.
The European Union is represented by its envoy on South Caucasus Peter Semneby. Also in attendance are energy ministers and their deputies from Britain, Israel, Norway, Turkey, Iran, Georgia, Bulgaria, Kazakhstan and other countries.
Along with profit organizations, the exhibition traditionally represents the national pavilions and groups from Germany, Britain, Russia and China. State companies taking part in the exhibition include Azerbaijani state oil company SOCAR, Japanese national oil and gas corporation JOGMEC, Georgian oil and gas corporation GOGC, and Turkish TPAO.
A conference, "The role of Caspian oil and gas resources in energy supplies to Europe", started on Wednesday. Speakers will deliver reports on the development of Azerbaijan's offshore fields, transportation of energy resources from the Caspian region, investments, etc.
A program of extra activities has been developed in light of the 15th anniversary of the oil and gas show. The participants will hold a ceremony of symbolic planting of trees to honor the memory of the late nationwide leader Heydar Aliyev. This will be followed by presenting the Caspian Oil and Gas scholarship to the student who was admitted to the Azerbaijan State Oil Academy with the highest points.
The Caspian Oil and Gas, Oil Refining and Petrochemicals exhibition has drawn more than 5,000 companies from over 70 countries since its opening in 1994.