Where Did the 200 Billion Dollars Go?

In the "Contract of the Century," 13 companies from 8 countries (Azerbaijan, the USA, the United Kingdom, Russia, Turkey, Norway, Japan, and Saudi Arabia) participated. The companies involved were Amoco, BP, McDermott, Unocal, SOCAR, LUKoyl, Statoil, Exxon, Turkish Petroleum, Pennzoil, Itochu, Remko, and Delta.

This contract later paved the way for the signing of 26 more agreements with 41 oil companies representing 19 countries. According to official information, over the past period, more than 56 billion dollars of foreign investment has been invested in the Azeri-Chirag-Guneshli (ACG) project.

Over these years, Azerbaijan has directly earned a total of more than 200 billion dollars from oil contracts.

The State Oil Fund of Azerbaijan (SOFAZ) reported that over the past years, the ACG fields have produced 595.8 million tons of oil and more than 225 billion cubic meters of gas: "From the beginning of this year until September 1, revenue of 4 billion 271.6 million USD has been obtained from the ACG fields. The total amount of bonuses paid to SOFAZ by the International Operating Company for the project from 2001 to date is 3.3 billion USD. By July 1 of this year, 202 billion dollars have been deposited into the Fund from ACG."

The institution noted that these funds have ensured the country's dynamic socio-economic development. Revenues from oil have allowed for the diversification of the national economy and the rapid development of the non-oil sector.

SOFAZ emphasized that since 2001, it has allocated funds for the resettlement of displaced refugee and internally displaced families who were uprooted from their native lands due to the Karabakh conflict, as well as for improving their social and living conditions: "During this period, the construction of high-rise buildings, individual houses, and other facilities for refugees and internally displaced persons has been carried out in Agdam, Fizuli, Shirvan, and other cities. By the end of 2020, a total of 2 billion 702.7 million manat was allocated from the Fund for the financing of measures under this project."

SOFAZ stated that from 2002 until February 2007, a total of 298 million manat was allocated to finance Azerbaijan's share in the Baku-Tbilisi-Ceyhan Main Export Pipeline project. It was also highlighted that 90 million manat was allocated for forming the authorized capital of the Azerbaijan Investment Company. Additionally, it was reported that a total of 1 billion 469.6 million manat was used for contracts signed to finance the reconstruction of the Samur-Absharan irrigation system project.

Furthermore, it was announced that a total of 779.6 million manat was allocated for the financing of the Oguz-Gabala-Baku water pipeline project.

It was also noted that a loan of 775 million manat was granted for the construction and restoration of various sections of the new Baku-Tbilisi-Qars railway line: "A total of 1,232.1 million USD was allocated to increase the authorized capital of the South Gas Corridor JSC..."

SOFAZ emphasized that during these years, state education programs have also been financed.

Political commentator Zardusht Alizadeh told Azadliq Radio that certain positive impacts of these oil funds are evident: "Baku has developed, regional centers have been built, road infrastructure and bridges have been renewed. Part of the money has also gone to building the army. The results are visible: Karabakh has been returned, and the Azerbaijani army is strong. Oil funds are also directed towards the reconstruction of Karabakh. These are undoubtedly the benefits brought by oil funds."

However, the expert believes that a significant portion of the oil money has been stolen: "These funds have been sent to accounts abroad and spent in foreign countries. There are people in Baku who own 100 apartments and have acquired numerous properties. There are billionaires and millionaires in Azerbaijan."

Regarding the economy, Z. Alizadeh considers the country's economic situation to be dire: "People belonging to dominant clans have stolen a portion of these funds. Azerbaijan's education and healthcare are in a terrible state. The population's living standards are low. Thanks to these funds, a ruthless system of oppression has been established that crushes all creative potential of the people and deprives them of their freedom rights."

Currently, the Fund's assets amount to 58 billion dollars.

On September 14, 2017, the duration of this contract was extended until 2050.

The current participation shares of the companies in ACG are as follows:

• BP: 30.37%
• SOCAR: 25%
• MOL: 9.57%
• INPEX Corporation: 9.31%
• Equinor: 7.27%
• ExxonMobil: 6.79%
• TPAO Turkish Petroleum Corp.: 5.73%
• ITOCHU International Inc.: 3.65%
• ONGC Videsh Ltd: 2.31%.