The biggest event in oil and gas sector of the Caspian region - the Caspian Oil and Gas International exhibition and conference celebrates the 20th jubilee of successful activity. The high level, traditional way of conduction, stability, creativity while forming the exhibition strategy are the main features that have always differed the Baku international oil and gas exposition from other global events. The 20th anniversary of the conference and the exhibition is a result and one of the main indicators of stable growth of Azerbaijan’s economy, the country’s commitment to the policy of openness in development of the oil and gas industry as well as the evidence of the growing attention of the world community to the only one capital city of the Caspian littoral state-Baku. The major event of the region is organized by ITE Group PLC and its partner Iteca Caspian LLC.
Certainly, the history of black gold is lasting for more than a century, but namely of Azerbaijan is associated with the main stages of production, application and refining of oil. The event which changed the idea of oil production occurred in Azerbaijan in 1847 when the first oil fountain appeared in Baku’s Bibi Eybat. Azerbaijani oil played a great role during World War II, when Baku ensured nearly 70% of the former Union’s oil. The first industrial oil production also originates from the Azerbaijani Oil Rocks field.
The independence gained in the 1990s became a starting point of the ‘golden century’ for oil and gas sector and the entire national economy in Azerbaijan. After the USSR collapse, Azerbaijan faced an uneasy economic situation and then Nationwide Leader, Heydar Aliyev undertook a number of crucial steps for the country.
Against the backdrop of the broken economic ties, political chaos and complex negotiations conducted with the oil companies for development of fields in the Azeri sector of the Caspian Sea, Heydar Aliyev takes a decision to hold the first Oil and Gas Exhibition in Baku on 24-27 May 1994.
No one could assess the role of the Caspian Oil&Gas exhibition for Azerbaijan and the whole region at that period better than Heydar Aliyev did. Speaking at the first oil and gas exhibition that gathered the state figures of the United States, Great Britain, Turkey, Russia, Iran and other countries, Nationwide Leader Heydar Aliyev said: “Our steps aimed at cooperation with the western oil companies feature both the economic and political aspects. We are confident that the further cooperation of Azerbaijan, its State oil company with the western partners will be built exactly on these principles”.
The clear and definite statements of the Nationwide Leader at the first Caspian Oil&Gas Exhibition and Conference, based on common values, meeting the national and regional interests, ensuring formation of Azerbaijan as a reliable partner played a decisive role in the implementation of the contract of the century. The agreement between the State Oil Company of Azerbaijan (SOCAR) and the consortium of major foreign oil companies on the joint development of Azeri-Chirag-Guneshli shelf fields called the Contract of the Century was signed four months later, on 20 September 1994. At the moment of signing, the consortium included US Amoco, Unocal, Pennzoil, Exxon, McDermott, British Petroleum ad Ramco, Norwegian Statoil, Russian LUKoil, Turkish TPAO, Delta Oil from Saudi Arabia and the State Oil Company of Azerbaijan.
Twenty years ago with the launch of this grandiose project for most countries and companies Azerbaijan became the symbol of global partnership laid by Nationwide Leader Heydar Aliyev. The contract of the century was not only the first in the overall Caspian region but also demonstrated example of successful cooperation of Azerbaijan with the major foreign investors. This event identified the main directions of the large scale development of Caspian hydrocarbon reserves and opened up a new epoch in the history of Azerbaijan’s oil and gas production.
Speaking at the exhibition in 1995, the Nationwide Leader said that ‘conduction of such a big oil and gas exhibition in Azerbaijan is by no way accidental. Azerbaijan, Baku has been the country of oil, of fire since ancient times. Industrial oil production started in Baku, Azerbaijan 150 years ago and since that time, Azerbaijani oil has passed a long and glorious way”. The second PSA-agreement on oil and gas on Garabagh structure was signed that year along with the launch of negotiations on the transportation of AIOC early oil by the ACG project in two directions-northern (Baku-Grozny-Tikhoretsk-Novorossiysk) and western (Baku-Supsa). Further the contract allowed SOCAR to obtain the reliable geological information about the structure and balance reserves of the field.
The high status of Caspian Oil&Gas is explained by by the fact that throughout history the exhibition has been held under the patronage of the country’s president. The leaders of different countries, including the Prime Ministers of Great Britain, Turkey, Norway, Presidents of the United States, France, Georgia, EU President sent the welcoming letters to the President of Azerbaijan on occasion of the opening of the next exhibition and conference.
In June of the following year of 1996, during the next Caspian Oil&Gas exhibition Azerbaijan signed a new contract on development of the Shah Deniz field (BP/Amoco plc., Statoil, Lukoil, SOCAR, TPAO, Elf Aquitaine, OIEC). Having rightly highlighted the principles on attraction of the regional countries to the contract, the Nationwide Leader said at the signing ceremony: “It has been the third time that we have signed a big contract within the past two years. Shah Deniz is one of the richest fields, discovered and explored by Azerbaijani geologists, scientists and oil men”. During the following years this field discovered Azerbaijan as a gas-rich country.
Azerbaijan further signed two more contracts: on development of Dan Ulduzu-Ashrafi areas (BP/Amoco plc., Unocal, Itochu, SOCAR, Delta) on 14 December 1996 and on development of Lankaran-Deniz-Talish-Deniz (SOCAR, Elf Aquitaine, Total, OIEC, Wintershall, Petrofina) on 13 December 1997.
As a major event in energy sector and an important platform for discussing urgent issues in regional oil and gas sector, Caspian Oil and Gas gathers together the leading specialists and major players in oil sector. High-ranking guests representing the energy countries of the world gather at the exhibition and conference. In different years, the exhibition and conference was attended by such honorable guests as the Romanian State Secretary for Economy and Labor Dimetr Attila, US Secretary of State for European and Asian Affairs Matthew Bryza, Minister of National Infrastructure of Israel Benjamin Ben-Eliezer, Deputy Minister of Energy and Natural Resources of Turkey Salih Pashaoglu, Vice Minister of Energy and Mineral Resources of Kazakhstan Lazzat Kiinov, Minister of Oil and Natural Gas of India Mani Shankar Ayar, Special Envoy of the US Eurasian Energy Department Richard Morningstar, US special delegation envoy for Eurasian energy S.Boyden Gruy, Minister of Trade and Investments of Great Britain, Lord Digby Jones, Minister of Energy of Georgia Alexander Khetaguri, Minister of Economy and Energy of Bulgaria Peter Dimitrov, Deputy Secretary of the Ministry of Energy and Natural Resources of Turkey Yusuf Yazar, Deputy Minister of Oil of Iran Huseyn Nogrekar Shirazi, State Secretary, Deputy Minister of Oil Industry and Energy of Norway Liv Monica Stabholdt, Minister of Energy of Lithuania Arvidas Sekmokas, Advisor for the British Foreign Ministry on Caspian Energy issues Angus Miller, Chief Advisor of Energy Affairs of the Kingdom of Norway Olav Berstad, Chairman of the Nobels Foundation Gustav Nobel, Special Envoy for Caspian Energy Issues of the Netherlands Foreign Ministry Rene Van der Linden, Deputy Minister of Energy and Natural Resources of Turkey Murat Merjan, Minister of Energy of the United Arab Emirates Mohammad bin Daen Alhamli, Prime Minister of Georgia Nika Gilauri, Commissioner of the European Union for Energy Affairs Gunter Oettinger, Duke of York Prince Andrew, Special Envoy of Great Britain for International Trade and Investments, State Secretary of Norway Robin Kass, Prince of Norway Hokon, US Secretary of State Hillary Clinton and other high-ranking officials.
After restoring political stability in the country, Heydar Aliyev took new steps for the use of favorable conditions created by the Caspian Oil&Gas exhibition: “We believe that just like in the past, the oil and gas industry of Azerbaijan occupies a worthy place in the world. Along with the international oil and gas exhibitions, conferences in Houston, Aberdeen, Stawander over the past years, Baku, Azerbaijan has hosted the fourth international oil and gas exhibition and conference. The conduction of the Caspian Oil and Gas-97 exhibition in Azerbaijan for the fourth time proved that it had already become a traditional event. I am fully convinced that this exhibition will continue and in the following years, the scale of this exhibition, conference will expand and the future exhibitions will promote the rapid development of the oil and gas industry in the world”.
Right after the exhibition and conference in July-August 1997 Azerbaijan signed four more oil contracts on development of the perspective structures of Oguz (Mobil, SOCAR), Nakhchivan (Exxon, SOCAR), Absheron (Chevron, Total, SOCAR) and Yalama (LUKARCO, SOCAR).
The Baku-Novorossiysk, Baku-Supsa pipelines each with the capacity of 6m tonnes were launched one by one for the export of early oil from ACG. The main export pipeline Baku-Tbilisi-Ceyhan (with the annual capacity of 50mln tons) was launched on July 13, 2006. Later the pipeline and the terminal in Ceyhan were named after Heydar Aliyev.
The exhibition started to expand its area, growing by 20-30% every year. Now the national stands of different countries were displayed at the exhibition. Over 5,500 companies from more than 70 countries have taken part in the exhibition throughout its history. The list of its participants, as well as sponsors includes the leading companies in oil and energy sectors, including Statoil, Total, BP, OMV, Conoco Phillips, Petkim, TPAO, RWE and many others. For Azerbaijani companies operating in oil and gas sector, the exhibition opened up a wide spectrum of opportunities for cooperation with foreign investors and introduction of international experience in local production and extraction of hydrocarbon reserves. The Ministry of Industry and Energy of Azerbaijan, as well as the State Oil Company of Azerbaijan (SOCAR) are making an invaluable contribution to the development of the exhibition.
The exhibition held in 1998 became a starting point for signing of three other oil contracts in June-July of the same year on development of perspective structures of Kurdashi (Agip, Mitsui, TPAO, Repsol, SOCAR), Inam (BP/Amoco plc., Monument, CPC, SOCAR), Alov-Araz-Sharg (BP/Amoco plc., Exxon, TPAO, Alberta Energy, SOCAR) and one in December of 1998 – on the development of Ateshgah-Yanan-tava perspective structures (Itochu, Japex, Inpex, Teikoku, SOCAR).
In anticipation of the Caspian Oil&Gas-1999 Azerbaijan signed two more contracts for the development of perspective structures ‘Zafar-Mashal’ (Exxon, SOCAR) and Lerik-deniz, Janub, Dalga (Mobil, SOCAR).
The Oil Fund was established in Azerbaijan according to the instructions of Nationwide Leader, Heydar Aliyev in 1999.
Nine years passed since the first exhibition when Nationwide Leader Heydar Aliyev said: “The Baku oil and gas exhibition has become traditional. It has been held for the ninth consecutive year. Representatives of new countries arrive in Azerbaijan every year for participation in the exhibition. It evidences that the Baku international oil and gas exhibition has turned into a world-scale exhibition and conference”.
The International Caspian Oil&Gas Conference, which accompanies the exhibition and serves as a tribune for discussing rich oil-gas and transit potential of Azerbaijan, its attractiveness for foreign investors, and opportunities for business cooperation, is a major component of the business program of the exhibition.
Executives of well-known oil corporations, representatives of government agencies and international organizations deliver reports every year within the framework of the conference. They share experience, successes and trace major trends of oil-gas industry development. This year the conference will gather delegates from over 30 world countries in one of the best Baku hotels “Jumeirah Bilgah Beach Hotel”.
The exhibition switched to a definitely new development stage after Ilham Aliyev’s election to the Presidency. If the exhibition involved only oil and gas industry development during the first years, now it covers refining, petrochemicals and other associated and auxiliary industries.
Caspian Oil and Gas, the biggest exhibition of the region, is becoming a forum where most important issues concerning regional development are discussed.
Azerbaijan joined the extractive industries transparency initiative and became one of the most active participants of this process. In this regard, President of Azerbaijan Ilham Aliyev said: “Azerbaijan is playing a leading role in this program. The Oil Fund is an exemplary organization from the standpoint of transparency”.
Investments started flowing into Azerbaijan in higher volumes as the country’s international image gradually grew. Besides, Azerbaijan turned into the initiator of all regional projects. Azerbaijan became a country ensuring regional energy security. Important issues concerning energy corridors and provision of energy security were discussed at Caspian Oil&Gas exhibitions and conferences.
A new era started in conduction of Caspian Oil&Gas Exhibition since 2005. Arrangement of the exhibition and conference was trusted to ITE Group PLC. At that time the company was already considered a leader in conduction of exhibition-congress events in countries with the developing economy. Later, Iteca Caspian, local partner of ITE Group PLC, joined the organizers. A professional team, including all ITE Group PLC partners such as LLC Moscow (Russia), EUF (Turkey), GIMA (Germany), ITE China (PRC), ITE Gulf (UAE), attracting actively international companies for participation in the Azerbaijani exhibition, has been working on organization of Caspian Oil and Gas throughout these years. Caspian Oil and Gas Exhibition, one of the specialized events in Azerbaijan, got accreditation of the Global Association of the Exhibition Industry (UFI) a year later (in 2006). “UFI approved event” mark points out to the exhibitions’ conformity with all international standards and acknowledges the validity of the statistics provided by organizers of exhibitions and conferences.
During many years of conduction of the Caspian Oil and Gas Exhibition in the country, it became a business-forum where companies display their new products and projects. During the exhibition, visitors were presented products and services that companies had not put into production yet. Original design of stands belonging to companies-participants and the job they did during the exhibition pointed out that they were actively preparing and looking forward to the exhibition. Based on requests of visitors, organizers decided to nominate a number of companies in 2005. Certificates and prizes were presented to BP for the “best stand design”, ConocoPhilips for the “most original design”, European Bearing Corporation for the “best usage of standard exhibition equipment”.
A catalogue about the conference materials including description of companies, speeches and biographies of people speaking at the event was published for the first time over the conference period.
Official newspaper Daily News Caspian Oil and Gas is one of the symbols of the exhibition and conference. The newspaper that has been published every year since 2005 covers the work of exhibitions and conferences. Articles about participants, industry news, interviews of key figures of oil industry, review of all market segments, as well as information about the exhibition, conference and events that are held within the framework of the exhibition were reflected in the newspaper. Every publication of the newspaper becomes an event for Caspian Oil and Gas participants and delegates. The thing is that information rendered on pages of the newspaper concerns both the exhibition, certain companies and people who took part and keep contributing to the development of oil-gas industry of Azerbaijan and the whole Caspian region. Statesmen arrive one by one from European countries for discussing issues concerning energy security of EU countries. It was in November 2006 when President of Azerbaijan Ilham Aliyev and President of the European Commission Jose Manuel Barroso signed a Memorandum of Understanding for strategic partnership in the energy sphere between the European Union and the Republic of Azerbaijan. The exhibition once again fixed the annual growth of participation of local companies in 2006. It was the year when the area of the Azerbaijani exposition and the number of companies grew by 36% and 20% respectively.
In his speech President Ilham Aliyev congratulated all participants on the important event – shipment of the first tanker (from the Turkish port of Ceyhan) loaded with oil produced at Azeri-Chirag-Gunashli fields. “The most important thing is that the interest toward this exhibition is not declining but growing. Despite this remarkable event has been held for 13 years, the number of parties wishing to participate in the exhibition and conference is still growing. It means attractiveness of Azerbaijan as an oil country is not fading. In spite of the fact that big oil contracts have already been signed, Azerbaijan is still maintaining a potential since new opportunities appear along with implementation of new projects”.
An international conference dedicated to the energy security and transportation of Caspian Oil to the world markets was held traditionally within the framework of the exhibition in 2006.
The 15th Jubilee International “Caspian Oil&Gas Exhibition and Conference Incorporating Refining and Petrochemicals” hosted 380 companies from 33 countries of the world. The display area was increased by 12%.
An international conference was held traditionally within the framework of the exhibition. The topic of the 15th Jubilee International Caspian Oil&Gas Conference was the “Role of Caspian oil-gas resources in energy supply of Europe”. The forum brought together 450 representatives and 50 leading specialists of this sector.
Even after a 15-year activity, the exhibition is remaining a visit card of the oil sector achievements in the region and a perfect platform for establishment of business relationships.
The programs of the exhibition and conference were heavy in following years. In 2009, Richard Morningstar, Special Envoy of the United States President, read US President Barack Obama’s letter addressed to President of Azerbaijan on the occasion of the exhibition’s opening. The letter noted Azerbaijan’s significance as an important and reliable supplier of energy resources to the world markets as well as pointed that USA would be Azerbaijan’s reliable friend and partner in development of energy resources. “I do believe in our tight cooperation with Azerbaijan. The USA supports Azerbaijan’s efforts in development of oil-gas fields and involvement in projects enabling to strengthen the country’s economy”, says the letter of the US President. In conclusion, Obama wished for further continuation and strengthening of this cooperation.
Prince Andrew, Duke of York, continued the opening ceremony. In his speech the Duke of York noted that he was very pleased to participate in such an important regional event. He also noted the special role that Great Britain had been traditionally playing in the Caspian region. Then, the Duke of York read the welcome letter on behalf of Gordon Brown, Prime Minister of the United Kingdom of Great Britain and Northern Ireland. “It is not accidental that the time of conduction of this exhibition coincides with grandiose growth and transformations in the Azerbaijani economy. The United Kingdom is proud that it has been Azerbaijan’s partner for the last 16 years, and I am sure that the British and Azerbaijani companies will cooperate tightly in coming years as well. I hope that the business week will be successful for all participants”, the congratulation letter runs.
Speaking at the opening of Caspian & Gas 2010 and addressing the event participants, President of the Republic of Azerbaijan Ilham Aliyev noted that Azerbaijan would keep increasing oil-gas production for meeting domestic needs and raising the export potential of the country. Having wished success to all participants of the exhibition and conference, President expressed confidence that the tradition of annual conduction of such a large-scale event as Caspian Oil & Gas would be continued in future.
Among those who addressed the participants of the exhibition and conference were Ms. Caroline Brown, Ambassador Extraordinary and Plenipotentiary of Great Britain, who read the welcome letter of David Cameron, Prime Minister of the United Kingdom of Great Britain; Ms. Mariam Valishvili, First Deputy Minister of Energy of Georgia, who read the welcome letter of President of Georgia Mikhail Saakashvili; Mr. Mohammad bin Daen Alhamli, Minister of Energy of UAE; Yusuf Yazar, Deputy Minister of Turkey for Energy and Natural Resources; Richard Morningstar, the US Special Envoy for Energy Issues in the Eurasian region, who read the welcome letter of the US Secretary of State Hillary Clinton; Elizabeth Valaas, Special Adviser of the Ministry of Foreign Affairs of Norway for Energy Issues in the Caspian region and Central Asia, who spoke at the event on behalf of Norwegian Foreign Affairs Minister Jonas Gahr Store.
Two more gas fields Umid and Absheron were discovered at that period and strengthened Azerbaijan’s positions as a gas country.
The exhibition opened another new page in its history in 2010 when held in the new exhibition complex Baku Expo Center. Baku Expo Center was designed and built in accordance with high international standards just for conduction of international exhibitions and conferences. The exhibition used to be held in Heydar Aliyev Sports-Concert complex before which had been a hospitable house for exhibition participants before the opening of the new exhibition complex. The opening became a desired event both for the participants of Caspian Oil and Gas and the country in general. The modern exhibition center enables to demonstrate the newest oil-gas industry technologies without any restrictions as well as creates favorable conditions for working. In the same year (2010) the exhibition was found to be the best brand of the year and received a prize in the nomination of Brand Award Azerbaijan 2010.
Every year Caspian Oil and Gas proves that participation in the exhibition is an invaluable opportunity aimed at drawing attention to products, setting necessary contacts with government agencies regulating operation of this sector, as well as establishing relationships with potential partners.
Caspian Oil&Gas 2011 made a good impression on many foreign high-ranking quests, leading specialists and major players of the global oil industry. President of the Republic of Azerbaijan sent a welcome letter, addressed to exhibition and conference participants, through an official Caspian Oil&Gas 2011 catalogue. US President Barrack Obama, Prime Minister of Great Britain David Cameron, Prime Minister of Turkey Recep Tayyip Erdogan, and President of the European Commission Jose Manuel Barroso also sent their welcome letters addressed to the event. Tens of leading Mass Medias from many countries covered the work of the exhibition and conference.
The 19th International Caspian Oil&Gas Exhibition and Conference Incorporating Refining and Petrochemicals, the largest oil-gas event of the Caspian region, was held at Baku Expo Center from June 5 to June 8, 2012. It wrote new bright pages in the history of oil-gas industry of Azerbaijan. Over 300 companies from 35 countries demonstrated their successes and achievements.
High status of the exhibition was acknowledged by participation of President of Azerbaijan Ilham Aliyev in the opening ceremony. Addressing the event, the head of the state highly assessed the conduction of Caspian Oil & Gas over the past 19 years, wished success to participants, and stressed the importance of their work for the country. Speaking about the general vector of development of Azerbaijan, Ilham Aliyev noted that the economic rate of Azerbaijan increased by 3 times over the past 10 years and the oil factor helped to revive the economy of the country as well as promote its growth. However, as for the President, it is not the revenues, it is their efficient usage. He emphasized that Azerbaijan was clear example of successfully implemented oil policy which would be continued during following years. Ilham Aliyev also spoke about gas projects that were underway in Azerbaijan. He assured that the country would become a big exporter of gas to the European markets coming years.
US President Barack Obama and Prime Minister of Great Britain David Cameron also sent congratulation on the opening of the exhibition. In their addresses they stressed Azerbaijan’s key role in creation of new energy corridors and expressed intention to assist in development of tight relationships between the countries. These addresses were read by the heads of diplomatic missions of these countries in Azerbaijan during the opening ceremony of Caspian Oil and Gas.
US State Secretary Hilary Clinton was another honorary guest of the oil-gas exhibition. She attended the stand of the American Chamber of Commerce AmCham, watched the exposition of the exhibition, took memory pictures with American businessmen engaged actively in business life of Azerbaijan.
Lithuanian Minister of Energy Arvydas Sekmokas, Georgian Minister of Energy Alexander Khetaguri, Daniel Stain, Senior Adviser of the US Special Envoy for Energy Issues in the Eurasian region, Angus Miller, Adviser of Foreign Affairs Ministry of Great Britain for Energy Issues in the Caspian Region, Olav Berstad, Senior Adviser for Energy Issues of the Kingdom of Norway, Gustav Nobel, Representative of the Nobels’ Fund, Rene van der Linden, Ambassador at large for Energy Issues of the Caspian region, Ministry of Foreign Affairs of the Kingdom of Netherlands, Murat Merjan, Deputy Minister of Energy and Natural Resources of Turkey, and others were among honorary guests who attended the exhibition and conference of that year.
The exhibition was remembered with a stand of air company Silk Way. The interior space of the company was created where visitors could view prototype models of passenger planes.
Stands of Statoil, OMV, Total, TPAO and other leading companies operating in the market of Azerbaijan were a place to meet permanent partners and make interesting presentations for establishment of new contacts.
As before, the newest oil-gas equipment, innovative technologies of oil and gas production, and new opportunities for transportation of energy resources were broadly demonstrated at the exhibition.
Just like in previous years, participating with national stands in the exhibition were such countries as Germany, Great Britain, Russia and Turkey. The number of companies representing CIS, Europe and Eastern Asia increased distinctly.
Companies from Vietnam debuted at the exhibition in that year. Over 40% of the exhibition area was occupied by world known companies. Most of them are regular participants of Caspian Oil & Gas exhibition. Foreign participants occupied 59% of the exposition area. The rest area of was allocated for domestic producers and local representatives of foreign companies. It is noteworthy that new companies which had never entered Azerbaijan’s market before accounted for 10% of exposition area. So the interest toward the exhibition is still obvious. In general, the growth of the whole exhibition exposition totaled 15%.
The International Caspian Oil and Gas Exhibition Incorporating Refining and Petrochemicals, the biggest event of the energy sector in the Caspian region, is celebrating its 20th jubilee in 2013. Over 20 years Azerbaijan’s specialized exhibition assumed the significance of a major branch forum that is to gather leading specialists and leaders of the global oil industry for demonstration of advanced technologies in the area of oil-gas production and refining, transportation, logistics and services. World known companies, that are permanent participants of the exhibition and conference, have traditionally accounted for 40% of exhibition area at Caspian Oil and Gas. Among them we can mention the State Oil Company of Azerbaijan (SOCAR), OMV, Conoco Phillips, Statoil, BP, Total, Petkim, TPAO, RWE and many others. Over 10,000 specialists representing more than 35 countries attend the exhibition every year.
The year of 2013 is also symbolical for the jubilee of the exhibition coincides with another remarkable date – 90th anniversary of the birth of Nationwide Leader of Azerbaijan Heydar Aliyev who was one of the founders of the exhibition. Even after marking its 20th jubilee, Caspian Oil and Gas will keep remaining a visit card of achievements reached by the oil sector of the region, and serve as a platform for establishment of business relationships and new prospects for mutually cooperation.
