Azerbaijan

Compliant country Hidden:  Not Hidden State Oil Fund of the Republic of Azerbaijan 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 FarzaliyevOrganisation: State Oil Fund, AzerbaijanTitle: 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.

On 20 June, Azerbaijan published its 14th EITI report disclosing company payments and government revenues from the extractive sector in the period January - December 2010. The report covers revenues from oil, gas, silver and gold industries. The report was prepared by Moore Stephens and is available on the State Oil Fund (SOFAZ) website. The Azerbaijan MSG is currently reviewing the report.For further information, please contact Sam Bartlett at the EITI International Secretariat.

As we approach half-way through 2010, it is proving to be as momentous for the EITI as expected. Although most of the 22 first EITI countries did not complete the validation of their EITI processes by their deadlines, eyes are now turned towards those granted short extensions to complete by September. Countries’ efforts to meet the deadlines have led to an unprecedented level of activity to improve transparency in the extractives sector. In the past 12 months, 18 countries have produced EITI Reports. File:  EITI-Newsletter-2010-July.pdf

EITI will hold its 10th Board meeting in Baku 14-15 October 2009. The Government of Azerbaijan, the first country to complete EITI validation, will host the meeting. The 20-person Board is made up of representatives from Governments, Companies and Civil Society.  The meeting will focus on the progress on validation of the EITI Candidate Countries.  The Board will also visit the Sangachal Terminal (one of the largest oil and gas facilities in the world).