Azerbaijan Azerbaijan

EITI Status

EITI Status: 
Compliant country

Compliant since

Compliant since: 
16 February 2009

Extractive Industries

Azerbaijan's real gross domestic product (GDP) has greatly increased in recent years, driven by growth in oil and gas production. The hydrocarbon sector accounted for 47.3 % of GDP in 2012, a decline from the 50.2 % recorded in 2011. Earnings from hydrocarbons sales account for around 90% of total export revenue.

The country welcomes growth in other sectors to become less oil dependent. Despite efforts to diversify the economy, it is likely that energy will remain the dominant sector in coming years.

Major projects such as the Baku-T’bilisi-Ceyhan oil pipeline (BTC) to Turkey, the country’s largest oil field Azeri-Chirag-Guneshli (ACG) and the largest natural gas field Shah Deniz (SD) contribute significantly to government revenues. The development of the Trans Adriatic Pipeline (TAP) for transit of gas from Azerbaijan to Europe is an important step towards developing the gas of the ACG field.

The State Oil Fund of the Republic of Azerbaijan (SOFAZ) is one of the central components of the strategy for managing these revenues.  Azerbaijan's proven crude oil reserves are estimated at 7 billion barrels and oil production amounts to more than 1 million bbl/day. The State Oil Company of Azerbaijan Republic (SOCAR) plays a major role in oil and gas production, and in managing oil and gas imports and exports.

EITI Reporting

The country produces EITI Reports that disclose revenues from the extraction of its natural resources. Companies disclose what they have paid in taxes and other payments and the government discloses what it has received. These two sets of figures are compared and reconciled.
The below graph does not include revenues in kind (volumes) before 2011.

EITI Implementation

Azerbaijan EITI is working on producing its first report under the EITI Standard, to be published in July 2014. The MSG met on 19 February to discuss the draft text of the EITI Activity Report 2013, collection of contextual information on extractive industries, the NGO Coalition's proposals on reporting templates and the draft revised Memorandum of Understanding.

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Innovations

Some of Azerbaijan's  Production Sharing Agreements are disclosed on the EITI website: http://www.eiti.az/index.php/en/senedler-2/agreements

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National Coordinator

Azerbaijan
National Coordinator
State Oil Fund
+99 412 498 7753 x129

International Secretariat

Azerbaijan
Technical Director
+47 9026 7530

Facts & Figures

Latest Eiti Report: 2012 Report
Deadline for next Eiti report: Wednesday, 31 December 2014
Number of fiscal years published: 10

Azerbaijan News