Azernews.Az

By Gulgiz Dadashova

The 21st Caspian International Oil & Gas Exhibition, the largest event in the energy sector of the Caspian region, kicked off at the Baku Expo Center on June 3.

Azerbaijani President Ilham Aliyev attended the event, at which he made an opening speech.

"The Caspian International Oil and Gas Exhibition plays an important role in Azerbaijan's life," President Aliyev said in his opening speech.

"The number of participants of the exhibition is growing each year and this is a very great and significant event, because we are expanding our activities in the oil and gas sector," he added.

President Aliyev said this exhibition has become the first important step, attracting the world's attention to the independent Azerbaijan.

"Azerbaijan's successes in the recent years have been achieved jointly with our partners," President Aliyev stressed, adding that the world did not have an extensive idea on Azerbaijan in 1994.

"Azerbaijan was a young, independent state, and the first years of independence were very hard for our country and people," President Aliyev stressed. "The civil war, internal conflicts, aggressive policy of Armenia against Azerbaijan, economic regress - we remember all of this, and 1993 will be remembered as a pivotal year in the development of young and independent Azerbaijan. Because, starting from that year, Azerbaijan has embarked on the path of successful development."

President Aliyev stressed that the goals are being executed and new ones are coming forward.

"Over the past years, our country, demonstrating a sustainable ascending development in the oil policy, adequately fulfilled the role of both initiator and executor of global transnational projects," he said.

The Shah Deniz-2, extension of the South Caucasus Pipeline, TAP and TANAP projects are successful steps that strengthen global partnerships and position of our republic. By investing huge funds in the oil and gas industry in various countries in recent years, Azerbaijan has strengthened its credibility in the global energy market. The project to create a new oil and gas refinery complex in Baku also has a great importance for the region," the president said.

"Announcement of 2014 as the Year of Industry in Azerbaijan, along with the traditional oil industry, would also give a new impetus to the development of non-oil industries," he said.

Now Azerbaijan consistently pursues a policy of recovery of non-oil sector by the oil revenues.

President Aliyev further noted that Azerbaijan needs new markets for its gas supplies as a large gas potential of the country cannot be limited to the current markets of the region.

The president said today Azerbaijan is best known in the world, including Europe, as gas-producing countries, and today, natural gas is the main factor that contributes to the energy security of countries. Today, energy security of each country is directly related to its national security. These two factors cannot be separated from each other.

President Aliyev said new gas fields such as Umid and Absheron have been recently discovered thanks to successful exploration work. The reserves of the Shah Deniz, Umid and Absheron equal to at least 2.5 trillion cubic meters. It will play its role in ensuring the energy security of both Azerbaijan and Europe for a long time, the president said, expressing satisfaction that very important steps were also taken in this direction.

President Ilham Aliyev stressed that Azerbaijan needs large markets for its gas export.

" Billions of dollars, invested in major oil and gas projects, namely, Shah Deniz, Trans-Anatolian and Trans Adriatic gas pipelines, will ensure long-term, sustainable development of Azerbaijan," the president further added.

"Hundreds, and perhaps thousands of new Azerbaijani companies, which will work as contractors, will sign the contracts. This will lead to the opening of tens of thousands of new jobs and contribute to the development of non-oil sector of the country's economy. The reason is that the construction and infrastructure projects will ensure the non-oil sector's development," Aliyev said.

He noted that Azerbaijan's main goal is to develop the non-oil sector, something that the results of the recent years indicate.

"Azerbaijan's non-oil sector is growing annually at least by 9-10 percent. So, the diversification of the country's economy is a necessary project which must be implemented," the president said.

He said the investment made in education, modern technologies, the aerospace industry and other areas, ensure the country's future.

"Financial position of the country is very stable. Azerbaijan took large steps in recent years in terms of economic transformation. The foreign debt amounts to eight percent of GDP, unemployment is at a level of five percent, strategic currency reserves are 70 percent of GDP. The country's competitiveness ups. According to estimates of the Davos World Economic Forum's Azerbaijani economy occupies 39th place in the world over the Competitiveness Index. Azerbaijan was able to achieve all this with the help of the reforms. But if it were not for the oil factor, rich deposits of the country, resources and their effective use all these achievements would require more time," the president said.

The country has great respect for the past, appreciates the activities of its friends, partners, foreign oil companies and the organizers of this exhibition.

Later, U.S. Ambassador to Azerbaijan Richard Morningstar read out U.S. President Barack Obama's message to the conference participants.

Azerbaijan plays a central part in contributing to the global supply of energy, and over the next two years will become a major supplier of gas to Europe, the message reads.

"Making the Southern Gas Corridor a reality will require hard work and close co-operation between Azerbaijan and its international partners," Obama said.

The U.S. sees the completion of this project as an important step towards expanding Europe's gas supplies, and stands ready to assist," the message reads.

"Your country's role as an energy supplier will enable the development of the diversified economy, strengthen the rule of law, and raise the living standards of the Azerbaijani people," the message reads. "The U.S. values the continued collaboration toward these rules."

The project of transporting Azerbaijani gas to Europe - Southern Gas Corridor is a vital project for Europe, British Prime Minister David Cameron said in his address to the congress participants.

His message was read out by Prime Minister's Trade Envoy to Azerbaijan, Kazakhstan and Turkmenistan Charles Hendry.

"Energy is vital for the economic well-being and development for all the Europeans," Cameron's message said. "That is why the Southern Gas Corridor is an important project."

Cameron noted in his message that 2013 was the key year for the corridor with major progress achieved on the Trans-Adriatic pipeline.

"This is a huge milestone for the project's implementation. I congratulate all who worked hard to achieve it," Cameron said. "But much should be done in 2014 to realize the full ambition of the Southern Gas Corridor," he said. "I am confident that this ambition will be achieved."

Cameron expressed hope that the project will provide further source of energy for Europe for many years to come.

With regards to Azerbaijani-UK relations, Cameron said that the two countries have established strong relationship.

"Commercial links are the major foundation of the relationship with UK companies like BP, being the larger source of foreign direct investments especially in the oil and gas sector," Cameron's message said.

Later, BP President Robert Dudley, EU Baku Office head Malena Mard and others addressed the event.

Norwegian Deputy Minister of Petroleum and Energy Kare Fostervold, Deputy Minister of Energy and Natural Resources of Turkey Metin Kilci, Turkish Deputy Minister of Transport Firudun Bilgin, Energy Charter Secretary General Urban Rusnák, Bulgaria's Ambassador-at-Large for Energy Lachezar Matev and senior adviser to the U.S. State Department's special envoy for Eurasian energy Daniel Stein are among the high-ranking guests attending the exhibition and conference.

Every year, Caspian International Oil & Gas Exhibition gathers leading specialists and leading enterprises in the oil and gas industry to demonstrate advanced technologies for the extraction and processing of oil and gas, transportation and logistics, as well as industry related services.

The exhibition offers an opportunity to discuss trends in the development of the oil and gas market, potential prospects for cooperation in the Caspian region and the development of solutions for energy security issues around the world.

Some 402 companies from 29 countries will present their products and services at the exhibition. Famous companies from around the world attend the exhibition.

These companies include those which were involved in the Contract of the Century - State Oil Company of Azerbaijan Republic (SOCAR), BP, Statoil, OMV, TPAO, Lukoil and many others.

Local companies comprise 35 percent of the total number of exhibitors, while the total growth of the exhibition has reached 10 percent.

The four day exhibition will also feature a substantial business programme.

Over 500 delegates from more than 30 countries will take part in the annual conference.

More than 50 representatives of state bodies, leading experts in the oil and gas industry and chief executives of major oil and gas companies from different countries will speak at the conference.