After more than a decade of EITI implementation, Azerbaijan has for the first time disclosed how much each individual oil, gas and mining company operating in the country pays to the government. This data was provided in Azerbaijan’s recently published EITI Report, covering 2013. More companies reported in 2013 (26 in 2012 and 38 in 2013) due to disaggregation by the companies participating in production sharing agreements (PSA).
Report discloses wide range of new information on sector
Upon the launch of the report, Shahmar Movsumov, Chairman of the Commission on EITI and Executive Director of the State Oil Fund of the Republic of Azerbaijan said: "The latest EITI Report is of high importance for Azerbaijan as it is the first report under the new EITI Standard, disclosing wide range of new information for public. Citizens now have more opportunities to oversee key operations in extractive sector. Publication of the report reaffirms a strong commitment of the government of Azerbaijan to the transparency which forms good basis for the next chapter of EITI to be written, ensuring even stronger monitoring of extractive sector revenues.”
Aside of company payments, the new report contains comprehensive contextual information on the extractive sector of Azerbaijan, including the ownership structure of companies participating in PSA. The report further contains a description of the role of the state-owned company SOCAR, which represents the government in all oil deals in Azerbaijan via shares in joint ventures.
In light of the challenges with EITI implementation this year, the publication of the report is a strong signal of the commitment from all stakeholders to continue to work together.
Gubad Ibadoghlu, representing civil society in Azerbaijan’s multi-stakeholder group said: “In general, the EITI Report for the year 2013 gathered a large volume of information that is important to all citizens of the Azerbaijan. Therefore, I estimate it a step forward in increasing transparency.”
He continued: “The analyses shown that a large part of the 2013 EITI Report meets the requirements of the EITI. However, this report does not comply fully with the requirements of the EITI Standard in a number of points, in particular the part on the state-owned company's participation in the extractive industries. Furthermore, this document has certain gaps and misunderstandings about the process of reconciliation.”
Key figures
Oil and gas remain the key drivers of Azerbaijan’s economic development. The country received USD 19.6 bn (15.3 billion manat) from the extractive sector in 2013, which is equivalent to two thirds of total budget revenues. This is a slight decrease compared to 2012 figures due to price volatility. The report also shows that 92% of the country’s exports are from oil and gas.
For further information about the EITI Azerbaijan, please visit the country page on the EITI website and the national EITI website.
The report can be downloaded here: https://eiti.org/files/aze_eiti_report_2013.pdf
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