ECONOMY

AZERBAIJAN DISCLOSES THIRD EITI REPORT

27.01.2006 [21:02]
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As stated by the press service of the Azerbaijan Oil Fund (SOFAZ), the Committee on Extractive Industries Transparency Initiative (“EITI”) established by the Government of Azerbaijan to implement its obligations taken at the conference on EITI held in June 2003 in London, on 27th January, 2006 announced the release of the Government’s third EITI report (Jan-Jun 2005 assertion) audited by AGN MAK, the independent Aggregator. The release is accompanied by the Aggregator’s opinion based on individual submissions of extractive industry companies participating in the EITI process in Azerbaijan.

The publication of Azerbaijan’s third EITI report follows the signing of a Memorandum of Understanding ("MOU") on November 24, 2004 between the Government of Azerbaijan, foreign and local extractive industry companies and a coalition of some 32 local Non-Governmental Organizations ("NGO’s") for Increasing Transparency in Extractive Industries to implement EITI in Azerbaijan. The MOU set out a clear and independent process for the implementation of EITI in Azerbaijan and since its signing has served as the framework for implementation efforts by all parties.

According to the Aggregator “…Assertion of the Committee on the EITI of the Republic of Azerbaijan, that the schedule of payments/allocations received during the 6 months period ended 30 June 2005 is prepared in accordance with the aforementioned requirements, is fairly stated in all material respects”.

The full report as well as the Aggregator’s opinion on the document has already been disclosed on the State Oil Fund (SOFAZ) and the EITI Secretariat of the UK Department for International Development (DFID) and the Non-Governmental Organizations (NGOs) Coalition for Increasing Transparency in the Extractive Industries of the Republic of Azerbaijan

The release of the Government’s third EITI report together with the Aggregator’s opinion follows presentation of the documents to the MOU parties on 16th January, 2006 and discussion on the outcomes of the reporting cycle. During the discussion signatories to MOU agreed that the Government and the extractive industry companies ought to devote additional effort for developing unified reporting procedures for handover and acceptance of crude oil from AIOC to the Government of Azerbaijan and provision of oil to BTC Company for line filling.