Azerbaijan

Compliant country

State Oil Fund of the Republic of Azerbaijan

Overview of Extractive Industries in Azerbaijan

Azerbaijan's real gross domestic product (GDP) has grown strongly in recent years, driven by growth in oil and gas production. Major projects such as the Baku-T’bilisi-Ceyhan pipeline (BTC) and the Azeri-Chirag-Guneshli (ACG) project are expected to substantially increase government revenues. Oil and gas receipts are estimated to account for over 70% of Azerbaijan’s exports and nearly 50% of budget revenues. Sustained economic growth requires effective management of resource revenues and non-oil sector diversification. The State Oil Fund of the Republic of Azerbaijan (SOFAZ) is one of the central components of the strategy for managing these revenues.

Status of EITI Implementation

The EITI Board designated Azerbaijan as EITI compliant on 16 February 2009. In accordance with previously agreed Validation guidelines, Azerbaijan must be revalidated within 5 years (i.e., by 15 February 2014).

A Committee on the Extractive Industries Transparency Initiative was established in November 2003. A Memorandum of Understanding outlines the respective roles of government, companies and civil society. Azerbaijan has subsequently issued annual and semi annual reports. The 9th EITI Report was published in December 2008. The Report from Azerbaijan's first EITI Validation was published in February 2009. The Validation report is available from its website.

Governance of EITI Implementation in Azerbaijan

A Committee on the Extractive Industries Transparency Initiative was established in November 2003. A Memorandum of Understanding outlines the respective roles of government, companies and civil society. Azerbaijan has subsequently issued annual and semi annual EITI reports. A coalition of Azeri NGOs, "For improving transparency in extractive industries" has a website.