BAKU, Azerbaijan, June 11. The oil and fuel
sector continues to play a vital function in Azerbaijan’s
economic system at the moment, Azerbaijan’s Minister of Financial system Mikayil Jabbarov
stated in an unique interview with AZERTAC and İTV.
“The oil and fuel sector nonetheless performs a really important function in
our economic system at the moment. As I’ve already famous, it accounts for 30
% of gross home product (GDP), which is a really
substantial determine. On the similar time, it performs an essential function in
producing the nation’s revenues. That is the case purely from an
financial perspective, however on the similar time, it’s clear that for
many many years there was no actual different to this sector.
When shaping our financial coverage, we should method this as follows:
acknowledge the significance of the oil and fuel sector, however not tie our
improvement to fluctuations in world market costs, and as an alternative
see the trail ahead in guaranteeing financial resilience.
As for our oil reserves and developments within the oil and fuel
business, we handed the height of manufacturing 16 years in the past. That was
in 2010, when round 51 million tons of oil had been produced within the
nation. By comparability, in 2025 this determine stood at 27.7 million
tons. Sure, pure fuel manufacturing has elevated considerably
in comparison with that interval. Nevertheless, in worth phrases, these components are
not absolutely interchangeable. Within the present new circumstances, I’d
divide our technique on this space into two elements.
The primary is that Azerbaijan nonetheless possesses important volumes
of oil and fuel. New initiatives might be launched, and secure and
sustainable operations might be ensured at current fields. Work is
actively ongoing on the beginning of deep fuel manufacturing from the
Azeri-Chirag-Gunashli area, the full-scale improvement of the
Absheron area, the graduation of manufacturing on the Babek area,
the second section of the Umid area improvement, the event of
wealthy assets within the Bahar and Gum Deniz initiatives, in addition to the
Karabakh mission. That is one facet of the difficulty; subsequently, our
nation will stay a dependable producer and exporter of oil and fuel
for a few years and many years to come back.
However, we should always not overlook that till now oil and
fuel manufacturing within the nation has been carried out utilizing
conventional strategies. Unconventional extraction strategies which have
emerged within the sector over the previous decade haven’t but been
utilized right here, however they’re at the moment being studied. Our nation has
related assets on this space. SOCAR and various international
companions have already signed numerous memoranda of understanding and
framework agreements on this regard. Nevertheless, I wish to
emphasize the next: when planning our economic system and revenues, we
ought to deal with these initiatives as a form of bonus. Even when they’re
not realized, our fundamental path stays the event of a
diversified economic system able to producing aggressive items in lots of
sectors. Allow us to deal with this as a bonus—if it doesn’t materialize,
we are going to nonetheless obtain our fundamental objectives.
The second a part of the technique is that we don’t intend to lose
the centuries-old traditions, information, and experience of our
nation on this area, or its place in world and regional
markets. That’s the reason you may observe that the actions of our
main establishment on this space—SOCAR—have lately expanded into
international markets and have change into extra energetic. Trying again 18 years,
the entry into the power market of pleasant Türkiye and SOCAR’s
subsequent transformation into the nation’s largest power
investor, proprietor of one of the vital fashionable oil refineries, the one
petrochemical advanced, logistics terminals, and key trunk pipelines
marked the start of this long-term technique and its tangible
realization.
At this time, nevertheless, SOCAR is buying stakes in numerous initiatives
overseas not solely in downstream infrastructure but in addition in upstream
manufacturing. This yr, funding initiatives had been launched within the
United Arab Emirates and, for the primary time on the African
continent, at a significant area in Côte d’Ivoire. As well as,
participation has been secured in a fuel manufacturing mission in
Israel, and this exercise will proceed. We consider that is
attainable because of our useful resource base, experience, skilled
capabilities, and the function our nation performs internationally.
Allow us to not overlook that at the moment we provide pure fuel to 16
nations, contributing to their power safety. Particularly in
geopolitically delicate durations similar to the current, this issue
additional enhances our nation’s function. On this sense, we don’t carry
out this exercise as charity. We’re compensating for the declining
portion of revenues beforehand generated from the export of our
home assets by energetic engagement and funding in
international markets. In return, the state-owned firm—of which the
state holds one hundred pc of the shares—generates dividends for the
nation.
It is a particular path, and I might record many profitable
initiatives on this regard. The newest amongst them is the
acquisition of Italiana Petroli—a big firm with a 35 %
share of the Italian market, proudly owning two refineries and a number of other
thousand service stations. This exercise will proceed. We will additionally
point out the signing of an settlement with Uzbekneftegaz and bp on
the joint improvement of the Ustyurt area in pleasant Uzbekistan.
In different phrases, that is an ongoing course of.
However, as I famous, we should guarantee extra energetic use of
the nation’s current transport and oil transportation
infrastructure. Within the Caspian basin, the place Azerbaijan is situated,
oil and fuel fields exist not solely in our nation but in addition in
neighboring states, and there are broad alternatives and intensive
cooperation on this path. At this time, oil produced in each
Turkmenistan and Kazakhstan is transported by Azerbaijan’s
infrastructure and reaches exterior markets. Naturally, that is an
essential aspect of the Center Hall, guaranteeing connectivity of
power infrastructure and contributing to the exercise of our
fleet, ports, and total transport system.
Subsequently, we glance to the way forward for our nation’s oil and fuel
sector with optimism. I consider this space ought to not be seen
purely as an oil and fuel business, however extra broadly because the power
sector as a complete, as a result of patterns of power consumption by
individuals, firms, and enterprises are altering, and we have to be
prepared for this.
A while in the past, a call was agreed upon to assemble a brand new oil
refinery—doubtless one of many largest funding initiatives of latest
years in our nation. We count on the mission to be accomplished inside
roughly 5–6 years. It is going to be a totally fashionable refinery assembly
at the moment’s necessities. This doesn’t solely concern industrial and
environmental requirements but in addition compliance with fashionable enterprise
mannequin necessities. The plant will produce not solely liquid fuels
but in addition next-generation petrochemical merchandise. At current, below
the coordination of the related authorities fee and with
state assist, SOCAR has begun implementing this mission,” stated
Mikayil Jabbarov.
