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

Azerbaijan is an EITI candidate country, and has been involved with the EITI since its inception.

Azerbaijan has until 9 March 2010 to complete the validation process.  

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 8th EITI Report was published in June 2008. Azerbaijan has also announced that it will proceed with Validation in 2008, and has established a working group for the coordination of the Validation process.

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.

The Government Focal Point

Mr. Adil Mammadov
Organisation: State Oil Fund, Azerbaijan
Title: Head of the EITI Secretariat
E-Mail: adil.mammadov [at] oilfund [dot] az

For further information, please contact Samuel Bartlett at the EITI International Secretariat.