Development of Azerbaijani gas condensate Shah-Deniz field is among the most important BP projects in Eurasia, said Greg Sonders, BP Director for Foreign Affairs, at the international conference organized by the Jamestown Foundation in Washington on December 17, 2012.
Voice of America quoted Sonders as saying that the Baku-Tbilisi-Erzurum gas pipeline (South Caucasian Pipeline) is the most advanced engineering project in the world and added that this project will open the window for the Caspian gas delivery to Europe.
Sonders also added development of the Shah-Deniz field will contribute to strengthening of energy safety and strategic interests between EU and USA as demand in natural gas is forecasted to increase multiple times.
The contract for development of Shah-Deniz offshore field was signed on June 4, 1996. The partners of the agreement are BP (operator) -25.5%, Statoil - 25.5%, NICO - 10%, Total - 10%, LUKoil - 10%, TPAO - 9% and SOCAR - 10%.
The length of the South Caucasian gas pipeline is 680 km. Gas extracted on Shah-Deniz field is transported via this gas pipeline to Georgia and Turkey. Azerbaijan is also a gas buyer.-0-
Economics
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Azerbaijan’s economy, which is heavily dependent on oil revenues, faces a stark warning in the 2021 report by Carbon Tracker titled “Beyond the Oil States: The Urgent Need to Reduce Dependence on Oil in the Context of the Energy Transition.” The report ranks Azerbaijan among the most vulnerable oil-dependent countries, placing it in the "5th group" — a category reserved for nations expected to experience a decline in oil and gas revenues exceeding 40% over the next decade. This group includes Angola, Bahrain, Timor-Leste, Equatorial Guinea, Oman, and South Sudan, highlighting shared economic risks for these states.
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Azerbaijan's non-oil and gas exports rose 3.5% year-on-year to $2.8 billion during the first ten months of 2024, the Center for Analysis of Economic Reforms and Communication (CAERC) reported in its November "Export Review."
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Azerbaijan Railways CJSC (ADY) will modify the schedules for commuter and domestic trains in line with the Cabinet of Ministers' decision to adjust work and rest days in November, aiming to ensure safe and comfortable travel during the COP29 event, the company announced.
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In Azerbaijan, the government has increasingly relied on tax exemptions for imported goods as a tool to stabilize domestic market prices. The exemption from the 18% VAT on wheat imports, extended this year, exemplifies this approach. New measures have also been introduced, including tax relief on imports of electric vehicle chargers, while exemptions for high-cost medications are currently under discussion. Notably, defense imports continue to be free from taxes and customs duties.
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