EXTRACTIVE INDUSTRY NEWS: Azerbaijan

Azerbaijan Republic’s oil producing, entering oil money to the country, and all processes related to it are the focus of attention. If we consider “black gold” s weight in a country’s economy and impact possibilities, we think, incomes, their spending, etc. have to be cause all Azerbaijan citizens to think. And we are not mistaken if we say transparency of these processes servers to all of our interests. The main goal of the organization that we represent “Improving Transparency in Extractive Industries” NGO Coalition is to help establishing transparency in this sphere and to obtain maximum participation of citizens in this process. Coalition has done many things since it functions. However, there are still many problems to be solved and much more strained and important problems are waiting for us in the future. We hold sociological researches permanently for the purpose of increasing quality of our work, improving our organization’s work, to continue our function more effectively and efficiently, to develop successes we gained and to draw citizens to these processes. The interrogatory drawn to your attention is the composition of this function. The interrogatory was conducted within the project held by support of Norwegian Embassy in Azerbaijan Republic.

The book contains information about the oil contracts signed by the Azerbaijan Republic, describes sources of the country’s oil revenues and their main beneficiaries, takes a look at the spending of oil revenues accumulating in the State Oil Fund of the Azerbaijan Republic, analyzes the risks of loss of some of the revenues and possible ways of mitigating them.

Representatives of IFIs including ambassador of Norway in Azerbaijan and head of EITI secretariat, as well as media and NGO representatives and experts participated in the event. Sabit Bagirov opened the event and after EITI NGO coordinator Gubad Ibadoglu made a presentation. The presentation was devoted to 3 main issues: role of oil in country economy, public opinion on this and CSOs concerns. The concerns were mainly on depositing oil money and its management, disaggregated reporting by companies, and discrepancies between calculations of NGO experts and government on profit sharing.

WORKING GROUP ON VALIDATION PROCESS HAS STARTED TO WORK...  INQUIRING OF THE NGOs COALITION HAS BEEN RESPONDED... NGOs COALITION PROPOSED A CANDIDATE TO THE EITI BOARD... SOFAZ’’s EXPENDITURES IS INCREASED... BP FACES WITH PROBMEM IN RUSSIA... THE COALITION HAS ANNOUNCED A COMPETITION AMONG EXPERTS... SOCAR’s SOCIAL EXPENCES HAS BEEN DISCUSSED...

The recent events in Georgia allowed as to rethink many things that our countries have encountered over the last two decades. The blood of peaceful and innocent people was shed again. Responsibility for this lies again with Russia’s neo-imperial circles - those who initiated conflicts ahead of the collapse of the USSR, who are still fanning their flames in the post-Soviet area in order to implement their imperial ambitions, and those who have been unable for all these years to separate the high principles of morality and law, proclaimed in words, from their egoistical geopolitical and commercial interests.

The ITEI Coalition of civil society institutions considers the release of the results of the audit on the 8th report an important development and an essential step, which the Government of Azerbaijan and the country-active oil & gas companies have jointly taken forward to increase transparency in the extractive industry...

Public Unions Coalition of  “Improving Transparency in Extractive Industries” has held a conference on topic “Implementation of EITI in Azerbaijan: retrospective view to a 5 years period” by financial support of  Norway Kingdom Embassy in Azerbaijan in 17th June 2008 at the Irshad Hotel by participation of local and international companies. Chairman of National Government Commission on EITI and executive director of the Oil Fund Shahmar Movsumov, ambassador of Norwegian Kingdom in Azerbaijan John Ramberg, representatives of oil-gas companies worked in Azerbaijan, World Bank’s and OSI’s( Open Society Institute) representatives  were participating in the conference.

Coalition for Improving Transparency in Extractive Industries is conducting  “ improving transparency of oil revenue expenses” project, financed by Baku Embassy of Norway Kingdom. One of the five planned directions within the project is organizing talk shows in local TV s. In this direction third shooting of program was held in 24th may in Kapaz TV of Ganja. Coalition’s coordinator Gubad Ibadolgu  has participated in the talk show as an expert.

State Oil Fund of Azerbaijan Republic (SOFAZ) assets have been increased from $ 2,017 million in August, 2007 to $ 3,335 million in April, 01, 2008. Budget revenues of the State Oil Fund of the Republic of Azerbaijan (SOFAZ) for the period of January-March, 2008 reached 1116,4 million manat, while budget expenditures constituted 438,4 mln. Manat. Revenues of the 2008 budget of the fund was approved 3,60, expenditures 1,68 billion manat, the amounts, however, will be expected to be amended in May, 2008 when the state budget is amended at the Parliament. SOFAZ’s revenues have been increased thanks to the oil price in the market.

This Press release is jointly prepared by Committee on EITI, extractive industry (oil and gas) companies and Non-Governmental Organizations (NGOs) Coalition for Increasing Transparency in the Extractive Industries of Azerbaijan.

The Coalition Increasing Transparency in Extractive Industry held its 10th General Assembly in the Conference Hall of AF-HOTEL-AQUAPARK on October 20th, 2007. The gathering started with the playback of the national anthem of Azerbaijan. Addressed to and read out at the meeting were the letters of greetings and welcoming speeches by the chairman of the EITI Commission of the Government of Azerbaijan and executive chairman of the State Oil Fund of Azerbaijan, Mr Shahmar Movsumov, as well as the Open Society Institute – Assistance Foundation, the Embassies of the United Kingdom and the Kingdom of Norway to Azerbaijan, and a number of international organizations and oil companies.

The coalition of local NGOs Increasing Transparency in Extractive Industries (ITEI) holds its 10th General Assembly at the AF-HOTEL-AQUAPARK in Novkhany, a settlement on the outskirts of Baku. The meeting will hear the reports by the Board and the Monitoring Group of the Coalition, and discuss the Action Plan of the Coalition for Year 2008, as well as amendments and alterations in the Regulations of the alliance. Meanwhile, as the term of office of the governing bodies of the Coalition is over, it has been decided to review the organizational issues on the agenda. The General Assembly will announce the members of the Board to oversee the operation of the Coalition for the coming two years.

Azerbaijan's Extractive Industry Transparency Initiative (EITI) is being developed by NGOs that created a coalition for this purpose 3 years ago. The NGO coalition has issued the first copy of a special journal about this. The journal called Transparency in Extractive Industry explains how the State Oil Fund's money is spent,

Extractive Industries Transparency Initiative (EITI) reports for the first six months of the year 2007 will be collated by Moore Stephens Azerbaijan Limited following the decision of the Selection Group, which was established in accordance with the Memorandum of Understanding signed between the governmental Committee on EITI, foreign and local extractive industry companies and the NGOs’ Coalition for Increasing Transparency in Extractive Industries to implement EITI in Azerbaijan. Tender has been announced by State Oil Fund of the Republic of Azerbaijan, as it is to pay audit company’s fees for collation of the next (seventh) cycle reports as per MOU.

The seventh reporting cycle on implementation of Extractive Industries Transparency Initiative (EITI) in Azerbaijan was launched on August 30, 2007 at the meeting of the Selection Group, which was established in accordance with the Memorandum of Understanding signed between the governmental Committee on EITI, foreign and local extractive industry companies (oil and gas) and the NGOs’ Coalition for Increasing Transparency in Extractive Industries to implement EITI in Azerbaijan. The Group decided to send invitations to bid to the Azerbaijan offices of the world-known international audit companies.