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). The Validation report is available here. 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 was admitted as a Candidate country on 27 September 2007.

Azerbaijan released its 2010 EITI report in June 2011. The report covers cash and in-kind payments and revenues from oil, gas, silver and gold. The 2011 report is expected to be published in June 2012. Azerbaijan has published seven semi-annual reports in addition to the eight annual reports covering the period 2003 to 2010. The EITI reports are available here. 

Governance of EITI Implementation

In 2003, a Memorandum of Understanding was established outlining the respective roles of government, companies and civil society. The multi-stakeholder group is currently discussing revisions to the MoU. The workplan for 2012 was recently adopted.

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 drogan [at] eiti [dot] org (Dyveke)drogan [at] eiti [dot] org ( Rogan) at the EITI International Secretariat.