A press conference of the Minister of Energy Parviz Shahbazov was held at the Executive Secretariat of the ruling New Azerbaijan Party

The Minister of Energy Parviz Shahbazov spoke about the exceptional merits of the “Contract of the Century”, celebrating its 25^th anniversary, in the socio-political life of Azerbaijan. The minister said that this historic contract was concluded thanks to the farsighted policy of the great leader Heydar Aliyev.

"This contract has strengthened the role of Azerbaijan in the international arena. Azerbaijan occupies a special place in the global oil market. We clearly feel the role of this contract in the life and fate of Azerbaijan. This contract is one of the unique projects that made it possible to obtain a 62-year guarantee for the development of Azeri, Chirag, Gunashli fields, to invest at least 36 billion US dollars and another 40 billion dollars in the future, and thanks to which the country earned 143 billion dollars. Since the commissioning of “Azeri”, “Chirag”, “Guneshli”, 492 million tons of oil and 161 billion cubic meters of gas have been produced.”

The minister spoke about the current state of the oil and gas, power engineering sector of Azerbaijan and the development perspectives in the coming years, as well as the work carried out on behalf of the President of the Republic of Azerbaijan to accelerate reforms in the energy sector. It was noted that in 2020-2021, the country's oil production is projected at approximately 39 million tons. This year, gas production is expected to reach to 19%, in 2020 to 40.2 billion cubic meters, and in 2021 to 45 billion cubic meters.        

“The “Shah Deniz” gas field plays an important role in transforming Azerbaijan into an exporter of gas that reliably ensures the energy security of Europe. Since the commissioning, 110.8 billion cubic meters of gas and 26.8 million tons of condensate have been produced from this field. The increase in gas production at the “Shah Deniz” field significantly influenced the export to Turkey, as a result of which 5.7 billion cubic meters of gas were sold to this country, which is 33.8% more than in the corresponding period last year. " - said the minister.

The Minister also noted that as part of the reforms, proposals had been prepared to stimulate the use of renewable energy sources, to create a favorable investment environment and to support private entrepreneurship in this area, a phased transition to a competitive liberal market model in the power engineering sector, as well as reforms in gas supply and heat supply:

"We believe that these measures can create favorable conditions to apply of an improved institutional environment and progressive management systems in the field of production, transmission, distribution and supply of energy and to attract private investment and efficiency. The draft laws “On Power Engineering”, “On Regulation in the Sphere of Power Engineering and Utilities”, developed taking into account the principles of a progressive market and international experience, are under discussion. The draft law “On the efficient use of energy resources and energy efficiency”, which was prepared as part of energy efficiency measures, is being reviewed. Appropriate measures are being taken to prepare a new law draft "On Gas Supply."

Then, the Minister Parviz Shahbazov answered journalists` questions.