OPENING CEREMONY OF “EUPEC-AZERBAIJAN” HELD

02.10.2003 [22:03]

Prime Minister of Azerbaijan Ilham Aliyev attended the ceremony

The opening ceremony of the Germany-Azerbaijan joint venture “Eupec-Azerbaijan” located in Khatai district of Baku was held on October 2.

Hundreds of people gathered in the area of the enterprise welcomed Prime Minister Ilham Aliyev with the storm of applauses.

Prior to the ceremony Prime Minister Ilham Aliyev viewed the area and was acquainted with the production process. Executive director of the enterprise Piter Blume told in detail about the plant founded in June 19, 2002 by well-known German company “Eupec-Azerbaijan” and Azerbaijani “Azpetrol Oil Company.” According to him, during the first phase of the joint work, the up-to-date factory was constructed in the area of 25 hectares; 10 million dollars were invested for preparation of the site, construction work and equipment supply.

During examination of the equipment, Prime-Minister Ilham Aliyev was informed that concreting and corrosion-preventing equipment had been ordered in Germany and the United States and installed under control of specialists from Germany, USA and Canada, while the construction work had been carried out by Azerbaijani contractors.

Prime Minister Ilham Aliyev was also acquainted with pipes coating process. Piter Blume noted that the pipes are supplied from Japan and France. Then they are delivered by hydraulic cranes to the processing line to be coated with three-coat polyethylene. The components using in the coating process are mainly produced in Azerbaijan, Italia, Turkey, Belgium and UK. According to him, the “Eupec-Azerbaijan” was the winner of the international tender announced by Azerbaijan International Operating Company on development of “Azeri-Chirag-Gunashli” oil fields. The firsts phase of the project covers 204 kilometers long 18 and 20-inch underwater pipelines; to this end, 16 thousand pipes have been delivered to the enterprise. Mr. Blume also informed Ilham Aliyev that today 300 local and 45 foreign citizens were employed with average monthly salary 400 dollars.

Following the familiarization with the “Eupec-Azerbaijan” joint venture, a solemn opening ceremony began.

Then Ilham Aliyev familiarized with the pipes coating process. Peter Blume informed that the pipelines were delivered form Japan and France. The components used in coating process are mainly the production of Azerbaijan, Italy, Turkey, Belgium and England. IT was stated that the “Aupec-Azerbaijan” enterprise was the winner of the international tender announced for development of the Azeri-Chirag-Guneshli prospects. The Prime Minister was stated that currently at the enterprise working were 300 local and 45 foreign citizens with average monthly wage of 400 USD.

After familiarization with the territory, the enterprise was inaugurated.

Speaking was the executive director of “Aupec-Azerbaijan”Mr. Peter Blume and vice-president of the ‘BP-Azerbaijan’ Company Mr. Rob Kellin.

***

Then, Prime Minister of Azerbaijan Ilham Aliyev made a speech at the inauguration ceremony.

SPEECH OF PRIME MINISTER OF AZERBAIJAN REPUBLIC ILHAM ALIYEV

Dear friends,

Ladies and Gentlemen,

I congratulate all of you with this landmark event – inauguration of the Azerbaijan-Germany joint venture.

In Azerbaijan, since 1994, a new oil strategy is being realized under the leadership of Heydar Aliyev. Creation of this plant is a part of this strategy. Should the “Contract of the Century” not signed and now there was no need of this plant. Since that time, a lot was done in this direction. Great investment was made in Azerbaijan, new enterprises, plants, factories are set up, and new working places are opened. It is pleased that this process goes head.

Heydar Aliyev’s oil strategy is multisided, consists of numerous aspects. Of course, in the preliminary stage the basic question was to attract investments to Azerbaijan. Now the process successfully develops. Billions of investments were put in the Country. And it will be put. The BP representative noted – 18 billion USD would be invested in the Country’s oil sector. Jus therefore, Azerbaijan is among the leading countries for the CIS space and Eastern Europe countries for investment per capita.

Another direction of the oil strategy is that in Azerbaijan should be set up transport infrastructure, constructed oil pipelines. This process continues. Azerbaijan already transports oil through two pipelines to the world markets. These are the Baku-Novorossiysk and Baku-Supsa oil pipelines. Currently the Baku-Tbilisi-Ceyhan MEP is being constructed.

This will enable Azerbaijan to export its oil in large volume and deliver to the world markets. Thus, the Country’s economy will be stronger.

Another direction of Heydar Aliyev’s oil strategy is that in Azerbaijan new production should be created, new working placed be opened. Today we witness this. This plant will employ 350 men, 300 of which are locals. According to provided information, Azerbaijan citizens working here receive 400 USD. It is very pleased. Recently in Azerbaijan opened will be some 600 thousand working places.

For long years, oil will be the decisive factor in Azerbaijan. It is natural. Along with this, other sectors of Azerbaijan also develop. I am sure that we shall have built many modern enterprises meeting high world standards.

I was informed that here the local citizens are professionally skilled. This shoes we have strong human potential.

Creation of this venture is a pleasing point and it has been created by the German and Azerbaijan companies. Relations between these two countries are at high level. We have no problem and on the contrary, there is understanding and cooperation between us.

I consider that in the issue of integration of Azerbaijan to the European family, we shall need support of Germany and we feel this support. We are very pleased that the German capital, business comes to Azerbaijan. WE are pleased that there is a cooperation spirit in our Country.

At the same time, we would like to companies-contractors to open their offices in Azerbaijan. First, the investor-companies should open them. Our Country has great potential and opportunities. I am sure that other companies will follow the German company and invest in Azerbaijan. Our Country quickly develops. It is pleased that share of the private sector in Gross Domestic Production is above 70 percent. This enterprise also represents private sector. The Government will do its best to develop private sector. It is out strategic course. Azerbaijan should become a rich country and will be it. We have every chance for this - natural recourses, high professionalism, will, love to Motherland.

All these factors will be mobilized and make Azerbaijan a rich country. We want our people live in welfare and prosperity.

In short period, a number of enterprises meeting world standards have been built and put into operation. Yesterday we inaugurated a fish-breeding factory. Today an important plant is opened here. It is also pleased that the production of these enterprises will be sold in Azerbaijan. This, in its turn, shows that signing of the “Contract of the Century” in 1994 by Heydar Aliyev was a courageous and wise step. Just it promotes in opening new infrastructures and creates condition for local producers.

Dear friends, as I noted, today is a landmark event in the history of Azerbaijan. A nice, remarkable enterprise is opened here. To this end, I congratulate all of you and wish you health and success.

Thank you.

Head of the President Administration Ramiz Mehdiyev, First Deputy Prime Minister Artur Rasizade, minister of economic development Farhad Aliyev, Baku Mayor Hajibala Abutalibov, president of SOCAR Natig Aliyev, ambassadors of France and Japan to Azerbaijan Chantal Poiret and Toshiyuki Fujivara, other officials attended the inauguration ceremony.