Speech by President Ilham Aliyev at the Quadripartite meeting held between the leaders of Azerbaijan, Georgia, Romania and Hungary

Dear Presidents!

Dear Prime Minister!

Dear guests!

I welcome you here to Azerbaijan. I am very glad to see you. I believe that today’s meeting is going to be successful and we will achieve positive results. The relevant organisations and ministries of our country have done a great job in organising this summit. I am positive that today’s meeting, our discussions, and the document we sign will launch a new stage in regional development. I am sure that we will do our best to realise our plans during the forthcoming months.

As you know, Azerbaijan is an oil country of long standing. The world’s first oil was produced in Azerbaijan and therefore we have great traditions in oil and gas. The first offshore oil was also produced in Azerbaijan. A great part of the oil produced by the Soviet Union in the middle of the last century was produced in Azerbaijan. However we faced serious problems when the Soviet Union collapsed. Back then there were problems of decline in the oil and gas industries and with ineffective self-government. Thus, the only way to restore our position was to work hard in order to attract foreign organisations. Our policy in this respect has been successful; in 1994, we signed the first major oil contract, called the Contract of the Century, and this allowed us to directly attract billions in foreign capital. A new spirit of cooperation was created in the Caspian Sea. For the first time, the Caspian Sea was opened up to international capital, and this created the conditions for active and all-round cooperation, based on our interests coinciding with those of our partners.

I would like to remind you of how this all happened and what the results were. In my view, the most important result was the development of strong cooperation in the oil and gas sectors, the creation of energy corridors, thereby enabling the first transportation of Azerbaijan hydrocarbons to the West. An energy infrastructure connected the Caspian Sea with the Black and Mediterranean seas for the first time. This was not only about the production and sale of hydrocarbons. This meant much more, opening the way to broad regional cooperation, which has now developed into extensive international cooperation.

The positive results we currently enjoy from supplies of oil and gas present a completely new vista. We have managed to use this capital to diversify our economy, to channel it into other areas, and to launch new projects. Baku-Tbilisi-Ceyhan was the first step in this direction, whilst the South Caucasian gas pipeline allowed us to transport not only oil, but also gas to neighbouring markets. We are well-aware of what dependence on external hydrocarbon resources means, since we have also been importers of natural gas for a certain period of time.

We have also served as a transit country for the countries located on the Eastern shore of the Caspian Sea. This continues today and we are now both producer and exporter. We have implemented, and are currently implementing, significant regional projects. I believe that a balance of interests and mutual understanding between producers, transit countries and consumers is extremely important. As of today, we have reached that balance of interests, and producers, transit countries and consumers will all benefit. In the future, our countries and peoples will also profit, and this will lead to a new stage in regional cooperation.

Taking into account today’s participation by our guests from Georgia, Romania and Hungary, we can speak seriously of Black Sea – Caspian Sea cooperation. We launched this project several years ago by constructing the pipeline stretching from Baku to Supsa, the Georgian shore of the Black Sea. As I have noted before, we have connected the Caspian and Black Sea basins. I am sure that as a result of this meeting, the extension of this route and new projects will lead to new opportunities and create the conditions for establishing closer ties between our countries.

I assume that one of the main reasons for holding today’s summit is to strengthen the ties that exist between the countries we represent. We have well-established bilateral ties with Georgia, Romania and Hungary. I am sure these ties will expand and develop in diverse fields. I think energy issues are a crucial element in these ties, nevertheless, we do not restrict ourselves to cooperation on energy. Collaboration in this sector will open paths to other economic areas and we will certainly also work on strengthening our political relationships.

Today, Azerbaijan transports oil and gas resources to various international markets. As a result of its successful oil strategy and policy, Azerbaijan has become an exporter of gas. Avenues of export continue to expand whilst export volumes continually increase. This year gas production volumes will total approximately 28 bn cu m, which will enable us to increase export levels along traditional routes. We are currently exporting gas to four neighbouring countries and the levels of export keep rising. We have confirmed a large number of resources. 2 trillion cu m are confirmed at international level, however, in reality our minimal potential resources amount to 5 trillion cu m. This is enough for decades, even a century.

The significant point is that we already have the infrastructure enabling us to transport gas to different markets. The construction of the Baku – Tbilisi - Erzurum gas pipeline was very significant in the development of regional gas cooperation. However, that was a small first step, limited to a certain volume. As we would benefit from new routes, we are now working on defining them. To this end we have numerous plans and strong political will. I am absolutely positive that the issues we intend to discuss today will play an essential role in the future energy map. Actually, we are changing the energy map. We are changing traditional notions of production, transportation, export routes and the potential for creating new routes. We are changing the situation, since it is not going to develop by itself. This is the political will of leadership, and practical projects are serious work. I am sure that the level of understanding between our countries and their governments, the level of our potential joint efforts will create a completely new situation.

As I have noted, we are actively cooperating with neighbouring countries in the energy sector. We are simultaneously in close collaboration with European institutions. Four years ago, Azerbaijan and the EU signed a Memo on Strategic Energy Cooperation and these contacts are now quite active ones. I am very glad that, today, two EU member countries and two South Caucasian countries are participating in this summit. Countries cooperating in the energy sector for many years are now working as one team. I would like us to continue working together in future. This would help us realise our gas potential, open new markets and enable European consumers to work together on projects to create access to the Caspian region and its hydrocarbon resources. I think that if we reach a concurrency of all interests, we will reach a clear perspective and promising future. I am sure that the negotiations I had yesterday with my counterparts, and today with the Prime Minister, will give impetus to this partnership.

Today we will sign a declaration on the project named AGRI. This is a new name and probably not everyone is aware of it. However, being new does not mean being backward. It is my belief that we have a good opportunity to assume leadership over all previously discussed projects with our dynamism, velocity and constancy. We will continue to work on projects related to the Southern basin and the AGRI project has great potential, since we observe such strong loyalty between us in promoting the project. As I have noted, we have made many preparations, the Memo of Understanding has been signed and today we intend to sign an essential document. And so I am sure that with our strong bond we can achieve good results by uniting our efforts. In my opinion, we can and must turn a new page in regional energy cooperation, despite the fact that not so many people are well-informed about the AGRI project. I am positive that after this summit, the AGRI project will take its place among the regional and European energy and gas projects.

Thus, at the end of my speech I would like to express satisfaction with today’s gathering. Dear guests, thank you for accepting my invitation and I am sure today’s event will prove to be historic, as it will have a positive outcome and launch a sturdy collaboration. Thank you for your attention.