Caspian Oil and Gas Exhibition i Baku

I appreciate being invited to speak at the opening of the 15th Caspian Oil and Gas Exhibition. I wish to start by congratulating you on the occasion of the anniversary. Turning fifteen is an indication of vitality and of promise for the future, and this is certainly the case for Azerbaijan. In Azerbaijan’s case, her oil and gas history is actually more than ten times 15 years.

Azerbaijan is a key country in a region with considerable geopolitical importance.  There is increasing interest in a broader and a deeper approach to the many long standing ties between Azerbaijan and Europe.  Norway enjoys close economic relations as witnessed by the fact that Azerbaijan is the no. 11 country in terms of outward direct investment from Norway. In the last few months His Excellency Elmar Mammadyarov and the Norwegian minister Jonas Gahr Støre have met twice to further strengthen our bilateral relations, signing of a joint declaration on the further development of friendly relations and cooperation between our two countries. One element of the declaration is a further deepening of co-operation in energy issues.

Norway is a longstanding partner with Azerbaijan. I believe this partnership has been to our mutual benefit. Norway’s biggest company, StatoilHydro, is the second largest investor in Azerbaijan. StatoilHydro is committed to Azerbaijan. The company has a sizeable local organisation here. It is the commercial operator for the Azerbaijan Gas Supply Company and the chairman of the Shah Deniz Gas Commercial Committee. The Norwegian supply industry has also had substantial deliveries to the projects in the Caspian Sea.

Security of supply is today a key issue and a driver for all energy related politics. For instance, every EU country is today a net importer of oil and gas. The EU imports more than 50 % of its present energy needs, and this figure is estimated to increase to 70 % by 2030. Like other regions, this increase is mainly due to a steadily rising need to import oil and gas.  Both Norway and Azerbaijan recognize our part in the future supply to EU.

There is a worldwide search for greater diversity of supply of energy.  Norway has considerable potential for further petroleum resources on the Norwegian Continental Shelf. We focus strongly in increased oil recovery in existing fields and careful husbandry of identified reserves and existing production.  Furthermore, the Norwegian energy chapter is moving cautiously into the high North, beyond the Arctic Circle into the Barents Sea, based on principles of sustainability and co-existence with other activities and the respect for the ecology of the sea.

There is a strong necessity to continuously nurture public acceptance of any substantial industry. The petroleum industry is no exception.  Let me high-light some factors: 

1. We should continuously improve the tool of scientifically based environmental assessment of any new petroleum developments.  We believe in an integrated management approach, involving all parties touched by or interested in the future of the petroleum industry.

2. The classic “exercise” of oil spill preparedness and equipment should be revitalized. The coastal protection and the local community’s support are closely linked.  The President’s focus on environmental issues to mitigate the effects of the petroleum industry activities here in Baku and in the region is commendable and mirrors the awareness a modern world requires.

3. The petroleum producing countries and companies are a part of the general objective of shaping robust societies. In that context, Norway - as Azerbaijan – strongly supports Extractive Industries Transparency Initiative (EITI), where countries and companies work together to make the risk of corruption and deviation of funds smaller.  I commend the important and leading role of Azerbaijan in EITI, having embraced this initiative very early and setting an important example.  I look forward to future cooperation also in the future. Norway is delighted to be chosen to host the secretariat of EITI and we are in the process of implementing the EITI principles as a sign of the importance we attach to the guidelines. Transparency continues to promote the robustness and integrity of the system. The management and the use of the profits are also crucial to secure public support.

4. Norway is dedicated to being part of meeting the growing energy needs without contributing to global climate change and pollution of the marine environment. Part of the answer could be CO2 capture and storage. The Norwegian Government is focusing on developing this option for resolving a considerable part of global green house gas emissions. It is important for all oil and gas producers that CCS not be excluded as a measure under the CDM. We call upon the support of all countries and the energy sector to this end.

Azerbaijan and Norway are major producers of oil and gas, being part of the equation with regard to global demand for energy. Both Azerbaijan and Norway share the objective of being reliable suppliers of energy to European countries.