President of Azerbaijan Ilham Aliyev has attended the opening ceremony of the 15th Caspian International Oil & Gas Exhibition & Conference on Tuesday at the Heydar Aliyev Sport and Concert Complex.

The event was opened by Andrew Wood, Senior Advisor at ITE Group Plc, who said development and stability reigning in Azerbaijan are a product of a far-sighted policy of the nationwide leader Heydar Aliyev, which today is being successfully continued by President Ilham Aliyev.

Suleyman Tatliyev, President of Azerbaijan’s Chamber of Commerce and Industry, said the 15th Caspian International Oil & Gas Exhibition & Conference is a vivid evidence of Azerbaijan’s successful oil strategy, which was initiated by late President Heydar Aliyev.

President Ilham Aliyev made a speech at the event.

The President said that it was after the national leader Heydar Aliyev initiated new oil strategy of Azerbaijan that the first oil and gas exhibition was held and the Contract of the Century signed in 1994. He said: “The exhibition played an important role in development of oil and gas sector in Azerbaijan and in attraction of large-scale investments into the country.”

The President pointed out that the significance of the “Contract of the Century” and following steps was not limited to high economic indicators the country has achieved. “It allowed us to achieve equal relationship between Azerbaijan, local companies and those enjoying highest reputation in the world. It allowed us to work effectively with international financial structures, and to raise Azerbaijan’s credit score,” he said.

The Azerbaijani leader stated that oil production in Azerbaijan will exceed 50 million tons this year and 60 million tons in 2009. “Our oil and gas pipelines are transporting our energy resources in various directions. The oil and gas fields discovered in Azerbaijan will ensure our country’s own demands and our export capabilities for many years, at least, for hundred years to come. As a reliable partner, Azerbaijan will continue to play its positive role,” he said.

The President said that in 1996, thanks to Heydar Aliyev’s vision, Azerbaijan signed a contract with international consortium to develop the Shah Deniz gas field. “Today, Azerbaijan is both satisfying its own gas needs and exporting gas to neighboring countries,” the President said. “At the same time,” he added, “we have achieved diversification of export routes.” The President said: “We have three oil pipelines, of which two reach the Black Sea and one the Mediterranean. We have four gas pipelines, one of which is the Baku-Tbilisi-Erzurum, and others connect Azerbaijan to neighboring countries.” He underlined that “it, on the one hand, meets our economic interest, strengthens our position in the talks with the transit countries, and, on the other hand - it is no secret - strengthens our international position because energy security nowadays is the matter of national security.”

President Ilham Aliyev said that Azerbaijan’s currency resources currently exceed $10 billion, the figure that will increase in the coming years because of expected oil price hikes.

The President also touched upon energy cooperation between Azerbaijan and European Union. He said: “As you know, about two years ago, Azerbaijan and the European Union signed a Memorandum on energy issues. It establishes common framework of cooperation. We are negotiating on the matter with a number of countries, including the member-states of European Union. Today, Azerbaijan is exporting gas to two countries, but the number will considerably increase in the future.”

President Aliyev also pointed out that Azerbaijan was one of the first countries to join the extractive industries transparency initiative. He said: “The Oil Fund has been functioning for many years meeting all international transparency standards. Its activity has been praised by the global community. Last year the United Nations awarded the State Oil Fund of Azerbaijan for improving transparency.”

The President also mentioned the progress achieved in socio-economic development of regions in Azerbaijan for a short period of time. “Over 650,000 jobs have been opened for the past five years. Unemployment has been all but eliminated, poverty level has reduced, and economic growth is obvious. We have managed to double our economy for four years,” he said.

“In general, our objective is to transform oil revenues to human capital, create right oil scenario in Azerbaijan, resolve social problems, and thereby include Azerbaijan in the list of developed countries of the world,” President Ilham Aliyev said.

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