Azerbaijani energy giant SOCAR opens its office in Ashgabat Followed by meetings on versatile cooperation

Azerbaijan’s Economy Minister Mikayil Jabbarov and President of Azerbaijan’s State Oil Company (SOCAR) Rovshan Najaf took part in the inauguration of SOCAR’s representative office in Ashgabat on November 28.

“This signifies our confidence in the long-term collaboration with Turkmenistan, anticipating mutual benefits in the energy sector for both countries,” Caliber.Az quotes Jabbarov as saying on his X page.

As part of their working visit to Ashgabat, Jabbarov and Najaf met with the Deputy Chairman of the Cabinet of Ministers for the Oil and Gas Sector Batyr Amanov.

The parties discussed the current state of cooperation in the energy exchange, joint exploration of hydrocarbon resources at the Dostlug field and the potential of SOCAR’s participation in the development of fields in Turkmenistan.

Moreover, Minister Jabbarov met with the Turkmen Foreign Minister Rashid Meredov. During the meeting, they underscored the special role of high-level meetings and negotiations in strengthening the political and diplomatic dialogue, and also outlined the need to search for new forms of partnership and the readiness of the parties to take further steps to expand trade relations.

The ministers also focused on the interaction in the fuel and energy sector and exchanged views on the current situation of Turkmen gas and electricity supplies to Azerbaijan.  

During the meeting, the ministers considered ways to increase regular cargo transportation by various modes of transport in terms of establishing transport and transit hubs. In this context, they emphasized the need for widespread use of the capabilities of seaports.

Economic cooperation 

On November 28, 2023, the 7th meeting of the Intergovernmental Turkmen-Azerbaijani Commission on Economic Cooperation was held in Ashgabat.

At the meeting, the Turkmen delegation headed by Deputy Chairman of the Cabinet of Ministers Batyr Atdayev and the Azerbaijani delegation headed by Minister Jabbarov discussed the implementation progress of the decisions of the 6th meeting of the Commission by the ministries and state bodies of the two countries.

During the meeting, positive dynamics in the growth of trade turnover between the two countries were noted.

The parties agreed to intensify cooperation in the energy and oil and gas sectors, in the chemical industry, in the fields of transport and communications, agriculture and food industry, environmental protection, urban planning and architecture, as well as in the humanitarian sphere.

An agreement was reached on the active participation of representatives of the private sector of the two countries in business events held in Turkmenistan and Azerbaijan.

The participants noted the high level of development of cooperation in the gas industry between the state concern Turkmengas and SOCAR.

Following the meeting, the Protocol of the 7th meeting of the Intergovernmental Turkmen-Azerbaijani Commission on Economic Cooperation was signed. The parties agreed to hold the 8th meeting of the Commission in the city of Baku.

On the same day, the Azerbaijani economy minister was also met by Turkmenistan’s President Serdar Berdimuhamedov. “Turkmenistan attaches great importance to the expansion and deepening of the multifaceted partnership with the Republic of Azerbaijan,” Berdimuhamedov noted at the meeting.

The president called for strengthening the role of the Intergovernmental Turkmen-Azerbaijani Commission as a coordinating body for stepping up relations in trade and economic, energy, transport and communication, scientific and technical, cultural and humanitarian, and other spheres.

The advantageous geographical location of both countries was highlighted as a key enabler for joint projects on an international scale.

Emphasis was placed on cooperation in energy supplies, expanding trade relations through the utilisation of seaport potential, intensifying cargo transportation across the Caspian Sea, establishing transport corridors connecting multiple countries, and enhancing interaction in the field of communications.

The sides also expressed their mutual interest in expanding cooperation in culture, science, and education.

Cooperation in customs sphere

Striving to enhance customs cooperation and facilitate trade flows, representatives of the State Customs Service of Turkmenistan, the State Customs Committee of Azerbaijan, and the Ministry of Trade of Türkiye convened for a trilateral meeting via video link on November 23, 2023.

This meeting, initiated by Turkmenistan’s State Customs Service, aimed to operationalize the trilateral intergovernmental Memorandum of Understanding (MoU) signed on December 14, 2022, during the trilateral summit in Turkmenbashi.

The MoU establishes a Joint Consultative Group, tasked with streamlining customs procedures, fostering mutual information exchange, and creating favourable conditions for trade growth.

During the meeting, the parties agreed to promptly exchange information regarding the members of the Joint Consultative Group, finalized the location and schedule for the group’s inaugural meeting, and explored mechanisms for exchanging data on goods and vehicles transiting across their respective customs borders.  

Jabbarov said Azerbaijan invites Turkmen companies to participate in the process of reconstruction of Karabakh and East Zangezur.

He added that trade turnover between the countries for January-October 2023 increased by 88 per cent compared to the same period in 2022, and for the last 2 years - almost 10 times.

Gas projects

Currently, the European Union intends to expand cooperation with oil and gas-producing countries, especially Azerbaijan, Kazakhstan and Turkmenistan, to supply energy resources to the EU.

Turkmen Deputy Prime Minister Shakhym Abdrakhmanov said on November 1 that his country will not give up a project to build a TransCaspian pipeline bypassing Russia to supply its gas to Europe.

According to some proposals, the pipeline project provides for the supply of up to 30 billion cubic meters of Turkmen gas through Azerbaijan, Georgia and Türkiye to the European market annually for at least 30 years.

In early June, Iran and Azerbaijan signed an agreement to double the volume of a gas swap between the latter and Turkmenistan. According to the gas swap agreement signed between the three countries on November 28, 2021, Iran annually delivers 1.5 to 2 billion cubic metres (bcm) of Turkmen gas to Azerbaijan.

From January 3, 2022, supplies of 5-6 million cubic metres (mcm) of gas per day began as part of the deal. Iran receives Turkmen gas in the east of the country and further delivers an equivalent amount to Azerbaijan.

In July 2021, Azerbaijani and Turkmen ministers agreed to further cooperate on the Dostlug (“Friendship” in Turkic) offshore oil and gas field in the Caspian Sea.

The joint development of the Dostlug offshore oil and gas field by Turkmenistan and Azerbaijan will make it possible to export gas to European countries if the Trans-Caspian underwater gas pipeline is built. In this case, the pipeline could be connected to the Southern Gas Corridor that links Azerbaijan with the EU countries through Georgia and Türkiye.