Azerbaijan news

The 17-year-old leader is gone: what will change in SOCAR?


President By the order of Ilham Aliyev, the State Oil Company (SOCAR) President Rovnag Abdullayev free was appointed Deputy Minister of Economy. Recall that, o, 20He has held this position since 05.

By another order of Ilham Aliyev, First Deputy Minister of Economy Rovshan Najaf SOCARhas been appointed first vice-president of the company, as well as acting president of the state company.

Being the locomotive of the country’s economy of leadership change SOCARDiscussions have begun on what innovations will lead to

The head of the Oil Research Center, energy expert Ilham Shaban told that, SOCAR enters a new stage in its development:

“SOCAR is a state in the contracts planned to be signed with foreign companies in 1992 and emerged as an institution to represent its interests. Of its origin 20The first period up to 06 was marked by the signing of more than 30 Production Sharing Agreements with foreign companies. During this period, SOCAR, together with its partners, began production from Azeri-Chirag-Guneshli (ACG), a mega such as Shah Deniz. gas the opening of the field took place. By modernizing the Baku-Novorossiysk oil pipeline in 1997? The Baku-Supsa oil pipeline was built in 1999. 15 billion for large-scale development of ACG The Baku-Tbilisi-Ceyhan project has been launched and Construction of the Baku-Tbilisi-Erzurum export pipeline has begun. In those years, a great burden fell on the shoulders of SOCAR. because 20The burden of the country’s economy until 05, I would say that, The main income came from SOCAR’s profits. Because the country’s profit from the activities of foreign companies was low, the main body that brought profit to the country was SOCAR. SOCAR itself to establish first contacts with foreigners and increase human resources and held a stage of studying international experience. “

The expert notes that, The second stage in the life of SOCAR can be considered as 2006-2020. “It was during this transition in December 2005 that the leadership of SOCAR changed and We have witnessed the construction of the structure in accordance with the requirements of the new era “he stressed.

İ.Shaban reports that, This stage can be called: “In the era of large oil revenues national Reconstruction of the oil company The launch of the BTC in 2006, the first from Shah Deniz gasthe emergence of and In 2007, for the first time in the history of Azerbaijan’s independence gas was remembered for becoming an exporter. And SOCAR has been operating in foreign markets since 2007. Oil products in neighboring Georgia and The sale of gas, having acquired a petrochemical complex in Turkey in 2008, was expanded to include production, and later to countries such as Ukraine, the United Arab Emirates, Switzerland, Malta, and Romania. It has assets in these countries. “

According to I.Shaba according toThe most striking example of SOCAR’s activity in the domestic market in the Production Sharing Agreement (PSA) of state-owned enterprises and contractor of joint ventures and Becoming a participant in multibillion-dollar projects as a subcontractor:

“Initially, they only manifested themselves in drilling operations, but later expanded to all segments of construction and spread to local private companies in the service sector. Of course, this profit was a lot of money, not only from oil production, but also from services. True, for some reason the government and SOCAR focuses on this point in its reports, but only quarterly on BP-Azerbaijan reportcan be seen in that, how many state, how many joint ventures with state participation and Private enterprises have received funding from contract projects.

The expert noted the 3rd stage of development in SOCAR’s activities 23 January Calculates from 2021. “It could be seen from the Decree signed by the President of Azerbaijan on that day that, SOCAR, which has been operating so far, will no longer be the same. SOCAR was aiming for change in terms of quality. Both his management was changing and steps were being taken to increase his earnings so that he could remain an important player for the Azerbaijani economy in the future. ”– the expert emphasized.

I.Shaban says that, Previously, one person in SOCAR – his president – was responsible for everything: his successes and failures. This is no longer the case: “The company is managed by three new bodies – the Supervisory Board and the Azerbaijan Investment Holding and has a superior position over all of them and the General Assembly, which is subordinate to the head of state. The powers of the SOCAR president have already been significantly reduced. The company’s policy is no longer determined by its president. President and Position of SOCAR Board of 14 more people snowThe tasks set in the bottle are timely, effective and is to implement it with better economic results. ”

According to the expert according tothey happened at that time that, Oil already on SOCAR’s own balance sheet and production in gas fields does not increase, because they are in old age: “The only field discovered by SOCAR during the years of independence is 2010– UMID gas-condensate field. In other words, SOCAR’s future activities will coincide with the production of small amounts of hydrocarbons.10will have to live in a period less than in The current price increase is temporary in the market and generally never oil and gas prices do not remain constant. During the transition to green energy, SOCAR cannot ignore global challenges, and activities should also take these factors into account. She according to The main thrust of the current changes stems from the SOCAR-2035 strategy, which has not yet been made public – very interesting, accepted but not disclosed. What will be the result? Of course that, we are now on his threshold and SOCAR has not yet settled in a completely new structure. It takes some time and we according to we can that, How have the reforms affected his activities? ”


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