From the conversation of President of the Azerbaijani Republic Heydar Aliyev at the meeting with the delegation of the USA "Davon Energy Co." - February 10, 2000

Heydar Aliyev: I was informed that you have arrived in Azerbaijan and held some meetings here, and that you also wanted to meet me. But I have had much to do for today. So, as you see, we are meeting so late. I have been reported that you purchased the "Pennzoil" Company. So, I understand that you are going to cooperate with Azerbaijan Please, I`m listening to you.

Larry Nickols (president and chief executive of the "Davon Energy Co."): Mr. President, I want to thank you for you have devoted time to us and accepted us in spite of your intensive work schedule. We want to congratulate you with a new century and with successful meetings held in Davos, and we wish you success in your visit to the USA.

Let me first of all introduce you my father: John Nickols, honorary chairman and founder of the company.It has been recently proclaimed one of the hundred strongest and most influential oil-and-gas producing companies in the USA.

Heydar Aliyev: Congratulations!!!

Larry Nickols: The purpose of the meeting is to introduce you the "Davon Energy Co."

The unification with the "Pennzoil" Company took place last year, and at the moment we turned into one of the 10 biggest companies in the USA in the sphere of oil and gas industry.Today our inventory contains 670 bln barrels. If to take an equivalent of oil, we daily produce 230 thousand barrels of gas and oil.

The total price of our company equals approximately US $6 bln. We are developing swiftly and in fact we grew last year twice as much. On the whole, our company was founded 11 years ago and and has enlarged 84 times within the past period. After the unification with "Pennzoil" our operations in foreign countries have been kept on. We work in Brazil, Venezuela, Egypt, and mainly in Azerbaijan. We can say with pride that we are the only company among the companies working in Azerbaijan which has the greatest share and industrial power. We were advised to expand our activity here in Azerbaijan.

Our purpose is to continue and extend the activity, launched by "Pennzoil" in Azerbaijan, as much as possible. Our office is also to function here, and it is led by Mr. Igor Yefimoff. We intend to extend our office as well.

We also continue the program started by the "Pennzoil" Company. The program is sponsored by our company, and we render financial aid to the Azerbaijani students, so that they could get education in the USA. We hope that when they graduate, they will return to Azerbaijan as skillful specialists.

As we know "Pennzoil" implemented great work over reconstruction of a sanatorium for consumptive children. Last year, we supplied the sanatorium with additional beds, and last month, we provided it with medicine. At the same time, our sponsorship is ongoing in the sphere of culture; we actively partake in programs connected with museums.

Although "Davon energy Co", has been operating in Azerbaijan not so long, we have learned about section 907 aimed against your country, which is a great injustice on the part of the USA. In this connection I appealed to President Bill Clinton with a letter, and I want to hand you its copy. I don`t know what other companies do in this connection, but I`ll do my best to help Azerbaijan in this issue. I will closely cooperate with senators from our state to bring this matter to their attention.

As you know, we comtinue the work started by "Pennzoil" within AIOC, and we hope we will succeed. Recently, we have drilled new boreholes in the "Garabakh" deposit. As we know it is a part of the contract signed in 1996. From the commercial point of view, to keep on working there is not so profitable. So, we have sent licenses back to AIOC. We think the time will come when it will be profitable to work there from the commercial point of view, and then we`ll resume our work.

Heydar Aliyev: That`s right!

Larry Nickols: We also work hard at a gas exploitation station. As we know this station produces one bln cubic metres of gas. But we have a problem connected with this station and we hope to solve it with your help. We`ve joined to the long-term work in Azerbaijan and we hope that our cooperation will be continuous.

Mr. President, we also have a gift which we would like to hand You. It is the work of the famous American sculptor, Frederick Remington, which is called "Cowboy".The spirit of progress is present in this sculpture, and this spirit is highly appreciated in our Oklahoma. Mr. President, we think that Your intention to move forward is also reflected in this sculpture.

Heydar Aliyev: I got acquainted with your work based on the information represented by you. Thank you for the information.

We closely cooperated with "Pennzoil", and I know about the work they did. I mean the sponsorship and other activities. I feel that you continue that work. I consider that if you have arrived in Azerbaijan with such intentions, you`ll succeed.

"Pennzoil" was one of the first companies to arrive in Azerbaijan. But then, I don`t know what happened in its structure, but its work grew weak.We created all necessary conditions to help them. I feel that you are going to carry out serious work here. I have always supported each company which works here with a feeling of responsibility. You may be sure that all corresponding suggestions on implementing wide activity in Azerbaijan by your company will be closely looked through and you`ll get needed assistance about it.

I highly appreciate your attitude to section 907. Some companies also initiated and sent letters to President Clinton. But not all the companies did it. I value it because you first paid attention to this issue before you started working in Azerbaijan.

The USA is a fair country, but some unjust things befall there as well. Section 907 is one of them.

Try to do something about it, as if we had been guilty, we would not attract anybody. Azerbaijan is punished being innocent, and we cannot get rid off this punishment. It is very strange. Anyway I hope that your efforts will be of use for the solution of this problem.

Thank you for the gift. And if your company tries to move forward so swiftly,it means that Azerbaijan has a place for you, too. We also try to move with the same speed. And that`s why we have achieved great success within a short period. But the results are still in the future. And we move forward speedily.

I was very pleased to meet you. I`m pleased that I got acquainted with your father. Now I think you will visit Azerbaijan more often and there is no doubt that you will love Azerbaijan, because our people are very hospitable and friendly. Our nature is very splendid. And we try to create all conditions to satisfy our guests.

Thank you again.

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