Overview of Extractive Industries

Azerbaijan's real gross domestic product (GDP) has grown strongly in recent years, driven by growth in oil and gas production. Major projects such as the Baku-T’bilisi-Ceyhan pipeline (BTC) and the Azeri-Chirag-Guneshli (ACG) project are expected to substantially increase government revenues. Oil and gas receipts are estimated to account for over 70% of Azerbaijan’s exports and nearly 50% of budget revenues. Sustained economic growth requires effective management of resource revenues and non-oil sector diversification. The State Oil Fund of the Republic of Azerbaijan (SOFAZ) is one of the central components of the strategy for managing these revenues.

Status of EITI Implementation

The EITI Board designated Azerbaijan as EITI compliant on 16 February 2009. In accordance with previously agreed Validation guidelines, Azerbaijan must be revalidated within 5 years (i.e., by 15 February 2014). In reaching this decision, the Board acknowledged the prompt corrective measures that the Azerbaijan Government has adopted in relation to the formalisation of a multi stakeholder group (MSG) and the establishment of a workplan. The Board confirmed Azerbaijan's achievement of these conditions at its meeting in Oslo on 9 February 2010.     

Azerbaijan issues annual and semi annual reports. Azerbaijan released its 12th EITI report on 14 May 2010 covering the period Jan-Dec 2009. The EITI reports are available here. The Report from Azerbaijan's first EITI Validation was published in February 2009. The Validation report is also available from the website of Azerbaijan's State Oil Fund.

Governance of EITI Implementation

In 2003, a Memorandum of Understanding was established outlining the respective roles of government, companies and civil society. Following the Validation, a multi-stakeholder group was established to oversee the implementation of the EITI. The MSG has agreed a workplan covering 2010.

A coalition of Azeri NGOs, "For improving transparency in extractive industries" has also been established (see website).

The Government Focal Point

Mr. Farid Farzaliyev
Organisation: State Oil Fund, Azerbaijan
Title: Head of the EITI Secretariat

E-mail: farid [dot] farzaliyev [at] oilfund [dot] az

Companies operating*

Oil & gas companies: BP*, Chevron Corp*, ExxonMobil*, Hess Corp*, Statoil*, TOTAL*, CNPC-(China), Devon Energy, Inpex (Japan), LukOil, Sinopec
* EITI Supporting Company 

* Note: Company list based on EITI research and is not conclusive

For further information, please contact Samuel Bartlett at the EITI International Secretariat.