Dear guests ! Honorable oilmen, scientists and journalists, I sincerely welcome all of you and wish successes in your works which have started today and which assume great importance. This meeting is connected with the problems of the joint developments of the oil deposits in future. As you know, Azerbaijan is an ancient oil country and the oil extraction in Baku began since the previous centuries. If we look into the history we should proudly say that Azerbaijan was the first country which explored and exported oil and oil products to many countries of the world. Let me speak briefly about the stages of development of the oil industry.
Azerbaijan draw attention a lot of the oil companies of many countries of the world immediately as it began the extraction and refining of oil. It’s obvious that the extraction and refining of oil in our country were closely connected with the names of the Azerbaijani businessmen and foreign companies. In those times Baku was known all over the world as an oil town. If we look at the next period , after 1920, the oil of Baku had an important role in the development of the former Soviet Union. You all are aware of the achievement and shortcomings of that period. Now we have moved to the third stage of the development of our oil resources.
If we look at the period till 1920, we will find out that the Azerbaijan oil was explored and transported by the huge companies of foreign countries and the people got very little advantages.
If we speak about the past 70 years, our opinions will differ more. The oil resources of Azerbaijan provided the whole Soviet Union and at the same time brought great benefits to the Azerbaijani Republic and its nation. I think that there is no need to deny and express senseless opinions. Time will solve all the problems. But it’s obvious then Azerbaijan was known all over the world and in the Soviet Unions as an Oil Academy. World famous oilmen, industrial workers, scientists and geologists working in the oil sector have been trained in Azerbaijan. They had worked in various regions of the Soviet Unions and had great role in the exploration, and exploitation and production of oil wells. In those years we said proudly that our oil scientists and workers worked in all the corners of the Soviet Union, used their experience their knowledge for the exploration of new oil fields and popularized the Azerbaijani oilmen.
It’s known all the world that offshore oil developments began first by the Azerbaijani oilmen. In 1949 after the oil gusher in Oil Rocks all the world used the experience of offshore oil developments. The activity of our oilmen never will be forgotten.
It’s not a secret that in the 1920s-1940s the Soviet Union improved its industry by using the Azerbaijani oil. In the Second World War oil and oil products had a significant role in strengthening the military might of the Soviet Union and the share of Baku in it was more than 75 percent.
All this are historical truth. But day by day we comprehend it more correctly and appreciate it exactly. I repeat once more that if we review the period till 1920, we must say that the foreign countries produced our oil , in the last 70years our oil was robbed barbarously, the local population couldn’t benefit from it, but now we are in a new stage. We must fairly appreciate these historic periods, derive inferences from them and arrange our work more efficiently .
With my speech I do not want to improve oil production or deepen the researches. I only remind you some moments in order to build our work more efficiently.
Aother reality is that in the last 60-70 years the oil potentials of Azerbaijan have sufficiently improved. Oil industry today has large funds, our scientists, geologists, oilmen have explored new rich deposits both in sea and on the shore. First of all, the use of this wealth for the sake of population, social -economic development of the country is the main factor.
The oil deposits are our our underground wealth. As I said, the oil fields of Azerbaijan are being developed over a century. But there are a lot of oil under ground yet, it’s the sacred duty of the present and future generations to use them efficiently . Our oil resources must be used for the development of the independent Azerbaijan for improving the social-economic life of the people, the welfare of citizens. It’s my duty to express these opinions here today. If we step to the more benefitly exploration of the oil fields, we must carefully plan our work. We must use the wealth God has endowed to us.
Undoubtedly, the interests of the oil companies of foreign countries must be taken into account.
To speak frankly, the position of Azerbaijan must be absolutely clear, both parties must benefit from it. First of all we should take into account the interest of our state and nation, at the same time the economic interests of foreign companies, there must be a mutual understanding.
Recently, such ideas was appeared in papers, in speeches of various people that during many centuries the wealth of this country were destructed cruelly and barbarously. Probably, such incidents had taken place, but now we don’t allow it. I regret that the oil industry of Azerbaijan was under the control of unprofessionals who were not responsible and made mistakes in signing some contracts.
Just because of it we decided to stop the signature of several contracts which were on the eve of conclusion. It doesn\'t’ mean that we want clearly analyse this issue. I say once more, we want to explore the oilfields for the development of the nation. We have no other aim and must not be. After our resolution on June 24 various articles in foreign press, complaints of different companies are not clear to us. We tried to comment all of them and I hope that we can remove the misunderstanding.
Now we start the new step of this issue. We have a very important task. I regret that oil and gas production has reduced. This has its reason. But the main reason is the careless organization of work, insufficient attention to the oil industry, unefficient use of the potentials. Now Azerbaijan produces 10 million ton of oil, 6 billion cubic meters of gases. I have learned that 20 huge oil deposits were explored by the joint activity of the oilmen, geologists, scholars, scientific institutions. These deposits have rich potentials. If they have been efficiently used, oil and gas exploration would hav not reduced, but grown.
But recently something undesirable has happened. I say with responsibility that this problem is that people with no information about oil, who do not know the terms of oil, unprofessionals, who spent their times in tea-houses, shout at meetings and solve the fate of oilfields. These persons do not know how to produce oil and improve the oil industry. Oil industry remained uncontrolled. Our urgent aim is to expand oil and gas production, improve oil industry.
Approximately, in the recent two-three years there has appeared such an idea that our oil reserves are very rich, we shall sign contracts with the foreign companies and that will they assist us to explore, refine, transport our oil to the world market, and help Azerbaijan out of this hard condition. Undoubtedly, we do not deny it because it’s one of the ways for the improvement of our oil industry. But if we reduce the oil exploration daybyday and wait that the oil exploration will increase and we shall get money by selling oil as the result of the signed contracts with various companies. We shall improve our country, but how the life of our people will be during these three years?
I say to the representatives of oil industry, scientists, whole the oilmen that our workers in this sphere are known to the whole world by their labour, loyalty. The coming generation of oilmen should advantage from the historical successes, experience of these oilmen and raise oil engineering, improve oil exploration, increace oil and gas production. Frankly speaking, today oil has become a means of commerce and they think only their own benefit. It’s treason to the Azerbaijani nation. We could not bear it.
I see in the hall our honourable scientists, well-known oilmen. Their life is connected with oil industry of the country. We all are witness of their life. In the 1950s-1960s, even in the 1970s there was great interest in this sphere by the people and state. We recalled them with great honour and pride, they were under great care. Inexperienced persons can not lead such industry and sphere of science. Just these very people led us to this situation.
All the oilmen,scientists, producers approve my views and agree that now we must efficiently profit from the potentials of the oil industry.
I note that a new stage has started in our oil industry. Approximately, at the half of the nineteenth and beginning of the twentieth centuries the Azerbaijani oil fields were explored by the European companies, later this sector passed under state control and now it is the same. But at the third stage we again contact with the foregin companies and try to develop this sphere. We must try to make this stage beneficial for Azerbaijan.
Don’t forget that oil is the unfinished wealth of Azerbaijan, but nobody can guarantee that, it can also exhaust. The oil fields also have border. If we don not use it efficiently, the coming generation will not pardon us. The persons who intend to gain more must think deeply. We must work so that the coming generation also benefits from this oil.
When we sign contracts with the foreign companies in the new era, we must not forget this point. The interest of various persons in this process is a great damage to the Azerbaijani nation, its economy, national might, statehood. We cannot let it, be sure that it\'s my position after taking my present post, I cannot let it.
Azerbaijan has rich offshore oil deposits as: “Azeri”, “28 May” and so on. All of these oilfields were explored by the scientists, geologists, oilmen who sit in this hall. Now can we let the businessmen to benefit from the results of the labor of our oilmen? I will never allow it. In the 70s there great attention was paid to these sphere. At the end of the 70s after exploring the oil wells in the depth of the Caspian Sea we started to extract and transport oil.
Surely, most of these people do not know that the construction of this plant in Azerbaijan was not easy. Because, our country was included into the agriculute potencial to USSR, our activity was not free. But I tell you that after our systematic and consistent measures they decided to construct this plant in Azerbaijan. There were not necessary inventories for the construction of the factory in the Soviet Union.
The USSR spent 400 million dollars for buying equipments. The equipment and technologies were bought from the United States of America. They informed me that the problem of construction of deep water foundations and using them have remained outside of the construction of the plant.
The contracts must be developed very attentivly and correctly. Nobody must try to deceive the other, each one protects his interest. The mutual terms, economic relations must be on the highest level. I hope that the members of the foreign countries will correctly comprehend my speech. I repeat once more that I positively appreciate the joint exploration of the oil fields, rich resources of Azerbaijan . But these relations and agreements must be carefully and wisely done. We’ll provide these points of the agreements and I guarantee you on behalf of the Azerbaijani government.
At the same time I note that if the oil companies of the great contries are interested in the Azerbaijani oilfields, then they should be interested in the social-political life of the country,too. I suppose that most of the oil companies are closely connected with their ruling circles. Their activity in our country promises the improvement of their attitude to our country.
Delivering my speech I want to add that the independent Republic of Azerbaijan will continue to establish beneficial relations with all countries. Hence, Azerbaijan will develop as a democratic republic, civil country. All the legal norms, international laws will be applied in Azerbaijan. The human rights will be protected in future, too, we shall pay great attention to these issues. Believe that nobody can prevent the development of Azerbaijan. Azerbaijan has joined the union of democratic states of the world and will develop on the bases of political pluralism and human rights.
I hope that these will be the main points in the establishment of relations of oil companies of Azerbaijan with the foreign oil companies.
We support the expansion of economic relations with the foreign countries presented here and will assist to this process. We’ll assist to the proper examination of these issues.
I wish all of you successes in your works and am sure that the relations of the oil company of the Republic of Azerbaijan (SOCAR)with the foreign companies will be improved faithfully .