In Azerigaz software, the change of the head

In Azerigaz software, the change of the head

Ruslan Aliyev, chairman of the Azerigaz production Association of the State Oil Company of Azerbaijan (SOCAR), has been relieved of his post.

His deputy Azer Mammadov has been appointed to this position.

This change of leadership comes amid growing attention to the operational inefficiency of Azerigaz and accusations of mismanagement, which draws attention to the problems facing the management of Azerbaijan's oil and gas sector.

The initial rationale for the integration of Azerigaz into SOCAR in 2009, according to the presidential decree, was to streamline and improve the efficiency of the gas distribution system in Azerbaijan. This step was aimed at improving the provision of services to the country's subscribers and ensuring a more cohesive management structure in the oil and gas industry. However, the expected benefits of this consolidation have been overshadowed by operational problems.

A critical point of disagreement was the transition from smart gas meters based on prepayment to mechanical analogues - a step allegedly aimed at simplifying the process of servicing the population. Contrary to expectations, this transition has led to difficulties, such as an increased need for meter controllers and an increase in subscriber debt. The prepayment system, which has been praised for its efficiency and ability to minimize debt accumulation, has been sidelined, raising questions about the reasons for this decision. With about 2.5 million subscribers, the financial implications of this transition are significant. If all subscribers are equipped with smart meters, the loan amount may amount to about 100 million manats per year.

Moreover, the activities of Azerigaz suffer from accusations of illegal interference in the operation of gas meters, unauthorized billing methods and improper installation of meters. These problems not only tarnished the reputation of the organization, but also led to public discontent, having a bad effect on SOCAR's supervision of its subsidiary.

As Azerbaijan continues to cope with the complexities of its energy sector, the focus on improving operational efficiency, transparency and customer service remains paramount. The country's ability to reform and improve its gas distribution system will be crucial to maintaining its status as a key player in the regional and global energy markets.

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