Ministry Of Industry And Energy (Azerbaijan)
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The Ministry of Energy of Azerbaijan Republic ( az, Azərbaycan Respublikasının Energetika Nazirliyi) is a
governmental agency A government or state agency, sometimes an appointed commission, is a permanent or semi-permanent organization in the machinery of government that is responsible for the oversight and administration of specific functions, such as an administratio ...
within the Cabinet of Azerbaijan in charge of regulating the activities in the industry production and energy sector of
Azerbaijan Republic Azerbaijan (, ; az, Azərbaycan ), officially the Republic of Azerbaijan, , also sometimes officially called the Azerbaijan Republic is a transcontinental country, transcontinental country located at the boundary of Eastern Europe and Wester ...
. The ministry is headed by
Parviz Shahbazov Parviz Ogtay oglu Shahbazov ( az, Pərviz Oqtay oğlu Şahbazov; November 24, 1969) is an Azerbaijan Azerbaijan (, ; az, Azərbaycan ), officially the Republic of Azerbaijan, , also sometimes officially called the Azerbaijan Republic is ...
.


History

The ministry was established according to the Presidential Decree No. 458 on April 18, 2001. Functions and obligations of the ministry were stipulated in Presidential Decree No. 575 dated September 6, 2001. The ministry's statute was approved by the
Azerbaijani Parliament The National Assembly ( az, Milli Məclis), also transliterated as Milli Mejlis, is the legislative branch of government in Azerbaijan. The unicameral National Assembly has 125 deputies: previously 100 members were elected for five-year terms ...
on May 15, 2006. Later, on 22 October 2013, this ministry was liquidated, and its function was passed to the Ministry of Energy established on the same date according to Presidential Order No.3. Regulations of the Ministry of Energy of Azerbaijan were approved according to Presidential Decree No.149 on 11 April 2014.


Structure

The ministry regulates the activities in the production and energy production complex. These activities include upstream and downstream activities, exploration and development of fields, operations of oil and gas refineries, power and heat generation, supply and distribution through the networks, and so forth. The State Oil Company of Azerbaijan (SOCAR), Azerkimya State Company, Azerigas Company, Azerenerji JSC, Azneftkimyamash JSC are all part of the complex. Main functions of the ministry are determination of prospective niches are preparation of state and regional programs to develop them, ensuring their realization; forecasting of production of various energy products; participation in international cooperation agreements in certain areas of energy sector; supervision of activities enforcing energy sector norms and laws; creation of friendly conditions for external and domestic investments in the sector; issuing of licenses; ensuring the sufficient supply of energy products in domestic markets; research and development in the sphere of energy; application of international standards and expertise within the country; preparation of activities directed at decreasing the potential losses during production, transportation, distribution and exploitation of energy resources; preparation of programs ensuring energy security of Azerbaijan Republic; ecological security assurance, etc. On January 11, 2018, structural changes were conducted in the Ministry of Energy in order to optimize the administration. New departments and divisions were established, among them: Oil Chemistry Department, Internal Control Department. Also, several other departments were reorganized. The Ministry of Industry and Energy of Azerbaijan Republic has agreements and cooperates with
European Energy Charter The Energy Charter Treaty (ECT) is an international agreement that establishes a multilateral framework for cross-border cooperation in the energy industry, principally the fossil fuel industry. The treaty covers all aspects of commercial energy ...
,
Organization of the Black Sea Economic Cooperation The Organization of the Black Sea Economic Cooperation (BSEC) is a regional international organization focusing on multilateral political and economic initiatives aimed at fostering cooperation, peace, stability and prosperity in the Black Sea ...
, Executive Committee of the CIS Energy Council, Organization for Economic Cooperation,
US Agency for International Development The United States Agency for International Development (USAID) is an independent agency of the U.S. federal government that is primarily responsible for administering civilian foreign aid and development assistance. With a budget of over $27 bil ...
, European Commission of European Union (
INOGATE INOGATE was an international energy co-operation programme between the European Union (EU), the littoral states of the Black and Caspian seas and their neighbouring countries. The programme was operational from 1996 to 2016. INOGATE was one of ...
,
TACIS TACIS is an abbreviation of "Technical Assistance to the Commonwealth of Independent States" programme, a foreign and technical assistance programme implemented by the European Commission to help members of the Commonwealth of Independent States (a ...
,
TRACECA TRACECA (acronym: Transport Corridor Europe-Caucasus-Asia) is an international transport programme involving the European Union and 12 member states of the Eastern European, Caucasus and Central Asian region.UN Economic Commission for Europe (UNECE),
International Atomic Energy Agency The International Atomic Energy Agency (IAEA) is an intergovernmental organization that seeks to promote the peaceful use of nuclear energy and to inhibit its use for any military purpose, including nuclear weapons. It was established in 1957 ...
, Coordination Council for the development of oil transportation corridor within the framework of
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,
World Trade Organization The World Trade Organization (WTO) is an intergovernmental organization that regulates and facilitates international trade. With effective cooperation in the United Nations System, governments use the organization to establish, revise, and ...
, Work Group for cooperation with
NATO The North Atlantic Treaty Organization (NATO, ; french: Organisation du traité de l'Atlantique nord, ), also called the North Atlantic Alliance, is an intergovernmental military alliance between 30 member states – 28 European and two No ...
, Special Work Group of the
UN Economic and Social Council The United Nations Economic and Social Council (ECOSOC; french: links=no, Conseil économique et social des Nations unies, ) is one of the six principal organs of the United Nations, responsible for coordinating the economic and social fields ...
,
International Monetary Fund The International Monetary Fund (IMF) is a major financial agency of the United Nations, and an international financial institution, headquartered in Washington, D.C., consisting of 190 countries. Its stated mission is "working to foster glo ...
,
World Bank The World Bank is an international financial institution that provides loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects. The World Bank is the collective name for the Interna ...
, European Bank for Reconstruction and Development, German KFW Bank,
Islamic Development Bank The Islamic Development Bank ( ar, البنك الإسلامي للتنمية, abbreviated as IsDB) is a multilateral development finance institution that is focused on Islamic finance for infrastructure development and located in Jeddah, Saudi ...
,
Asia Development Bank The Asian Development Bank (ADB) is a regional development bank established on 19 December 1966, which is headquartered in the Ortigas Center located in the city of Mandaluyong, Metro Manila, Philippines. The bank also maintains 31 field office ...
, Japanese Bank for International Cooperation.


Cooperation with other countries


Germany

Ministry of Energy of Azerbaijan held a meeting with the Eastern Committee of the German economy on 13 February 2018. Parviz Shahbazov mentioned that the history of economic and cultural cooperation of Azerbaijan with Germany started 200 years ago when the German from Vurtemberg moved to Azerbaijan. Also, he noted that more than 200 Germany based firms operate in Azerbaijan. “
Uniper Uniper SE juːnipɚis an energy company based in Düsseldorf, Germany. The name of the company is a portmanteau of "unique" and "performance" given by long-term employee Gregor Recke. Uniper was formed by the separation of E.ON's fossil fuel ...
” company plays a role in the development of this cooperation too. It is also one of the companies, which is going to buy gas from Shahdeniz Stage 2 Azerbaijan and Germany are going to exploit the alternative energy to strengthen economic relations.


Saudi Arabia

On 16 January 2018, a delegation from Azerbaijan led by Parviz Shahbazov visited Saudi Arabia. The delegation of Azerbaijan had a meeting with Salman bin Abdulaziz al Saud, during which the cooperation in the energy sector was discussed. Khalid Abdulaziz Al Falih, Minister of Energy, Industry and Natural Resources, mentioned that the branch of “ Saudi Aramco” company would operate in Azerbaijan.


Czech Republic

Azerbaijan and the Czech Republic are currently working on a new inter-ministerial energy agreement. “The essence of the document is to underline the strategic importance of supplies of Azerbaijani oil to the Czech Republic, but also to facilitate the cooperation in the development of alternative energy sources (e.g., the hydropower and other green energy sources) and create conditions for the involvement of entrepreneurial subjects in energy projects in both countries,” Thomas Huner, Czech Minister for Industry and Trade said. Azerbaijani oil represents one-third of oil consumption in the Czech Republic.


Southern Gas Corridor

Due to the Southern gas corridor, gas will be transported from the Caspian region to Europe. The main source of gas will be Shah Deniz Stage 2. Ministry of Energy of Azerbaijan cooperates with BP for the realization of this project in the Caspian Region. First, Gas will be supplied to Georgia and Turkey in 2018. Thereafter, in 2020, gas is expected to be delivered to Europe.


See also

* Cabinet of Azerbaijan * Petroleum industry in Azerbaijan *
Southern Gas Corridor The Southern Gas Corridor is an initiative of the European Commission for a natural gas supply route from Caspian and Middle Eastern regions to Europe, proposed in 2008. The goal of the Southern Gas Corridor is to reduce Europe's dependency on Ru ...


Further reading


"The Political Economy of Oil in Azerbaijan"
''Caucasus Analytical Digest'' No. 16


References

{{DEFAULTSORT:Ministry of Energy (Azerbaijan)
Energy In physics, energy (from Ancient Greek: ἐνέργεια, ''enérgeia'', “activity”) is the quantitative property that is transferred to a body or to a physical system, recognizable in the performance of work and in the form of hea ...
Azerbaijan Azerbaijan (, ; az, Azərbaycan ), officially the Republic of Azerbaijan, , also sometimes officially called the Azerbaijan Republic is a transcontinental country located at the boundary of Eastern Europe and Western Asia. It is a part of th ...
Azerbaijan, Energy Energy in Azerbaijan 2001 establishments in Azerbaijan