Europe / Caspian / CIS
Country profile: Azerbaijan
|Location:||Southwestern Asia, bordering the Caspian Sea, between Iran and Russia, with a small European portion north of the Caucasus range|
|Climate:||dry, semiarid steppe|
|Terrain:||large, flat Kur-Araz Ovaligi (Kura-Araks Lowland) (much of it below sea level) with Great Caucasus Mountains to the north, Qarabag Yaylasi (Karabakh Upland) in west; Baku lies on Abseron Yasaqligi (Apsheron Peninsula) that juts into Caspian Sea|
|Size:||86600 sq. km total (Land area: 86100 sq. km Water area: 500 sq.km)|
|Population:||8,177,717 (July 2008 est.)|
|Languages:||Azerbaijani (Azeri) 90.3%, Lezgi 2.2%, Russian 1.8%, Armenian 1.5%, other 3.3%, unspecified 1% (1999 census)|
|Legal system:||based on civil law system; has not accepted compulsory ICJ jurisdiction|
|Currency:||Azerbaijani manat (AZN)|
Bordering the Caspian Sea Azerbaijan is capitalizing upon the Sea's sizeable, but still mostly untapped, hydrocarbon resources. Azerbaijan's real gross domestic product (GDP) grew by an impressive 31 percent in 2006, driven by growth in oil production and the beginning of natural gas production. In the next couple years favorable real GDP growth is expected, but maintaining low inflation rates as energy and transit revenues flow into the country represents a major challenge. Azerbaijan's hope for sustained economic growth rests in large part with its management of sizeable oil and natural gas resources in the Caspian Sea region, through effective management of the resulting revenue stream, and non-oil sector diversification.
After the first commercial oil flows through the Baku-T’bilisi-Ceyhan pipeline (BTC) during summer 2006 and the increasing oil production from the Azeri-Chirag-Guneshli (ACG) project, oil revenues are expected to contribute to a doubling of Azerbaijan’s GDP by 2008. Although the oil sector represented around 10 percent of Azerbaijan’s GDP in 2005, it is already projected to double to almost 20% of GDP in 2007. To manage the revenues, former president President Heydar Aliyev created a State Oil Fund in 1999, which is designed to use money obtained from oil-related foreign investment for education, poverty reduction, and efforts aimed at raising rural living standards. As of the end of 2006, the State Oil Fund reported assets of almost $2 billion, but the fund’s assets are expected to increase exponentially to $36 billion by 2010. See a recent paper in Geopolitics of Energyfor more information on the effects of energy revenues on Azerbaijan.
Energy production and consumption
|Production:||934,700 bbl/day (2007 est.)||6 billion cu m (2007 est.)|
|Consumption:||160,000 bbl/day (2007 est.)||9 billion cu m (2007 est.)|
|Exports:||795,600 bbl/day (2007 est.)|
|Imports:||3,924 bbl/day (2004)||4 billion cu m (2005)|
|Reserves:||7 billion bbl (17 April 2007 est.)||849 billion cu m (17 April 2007 est.)|
Azerbaijan - recent news
|25 Jun 20
||Azerbaijan: Zenith Energy completes handover of Contract Rehabilitation Area to SOCAR
Zenith Energy has announced that the handover process of the Contract Rehabilitation Area ('CRA') to SOCAR in the Republic of Azerbaijan has now been successfully concluded and the Company has ceased all oil production operations in Azerbaijan.
|21 May 20
||Azerbaijan: ExxonMobil relaunches sale of stake in giant Azeri oilfield - Reuters
ExxonMobil is reported to have relaunched the sale of its stake in Azerbaijan’s largest oilfield. The Company first tried to sell its 6.8% stake in the Azeri-Chirag-Gunashli (ACG) field in the Caspian Sea in 2018, as Chevron launched the sale of its own 9.57% stake in the field.
|16 Apr 20
||Azerbaijan: Chevron sells Azerbaijan assets to MOL Hungarian Oil and Gas
Chevron has announced that its affiliate companies have sold their non-operating interests in the Azeri-Chirag-Deepwater Gunashli (ACG) oil fields (including interests in the Western Export Route Pipeline) and the Baku-Tbilisi-Ceyhan (BTC) oil pipeline located in Azerbaijan, to MOL Hungarian Oil and Gas for a consideration of $1.57 billion.
|31 Mar 20
||Azerbaijan: SOCAR and Equinor confirm participation in the development of the Karabagh field
SOCAR and Equinor have confirmed participation in the development of the Karabagh field, located 120 kms offshore, east of Baku, in the Azerbaijan sector of the Caspian Sea. On March 19, 2020, the parties confirmed the discovery of the Karabagh field, a new field with 60 million tons of oil reserves, as a result of successful appraisal drilling.
|05 Mar 20
||Azerbaijan: AIOC awards services contract in the Caspian Sea to Worley
Azerbaijan International Operating Co (AIOC) has awarded Worley a contract for engineering, procurement and construction services as part of a gas lift project. AIOC is operated by BP. Under the contract, Worley will provide engineering, procurement and construction services to support production operations on the Chirag platform in the Caspian Sea.
Azerbaijan - more news
Other countries in this region
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- Czech Republic,
- Faroe Islands,
- United Kingdom,