Opening Address at the 7th International Caspian Oil and Gas Conference and Exhibition

Mr. President, Your Excellencies, Ladies and Gentlemen;
It is a great honour and pleasure for me to address this distinguished audience.

This is the 7 ^th> consecutive conference and exhibition held here in Baku, and it is the 6 ^th> consecutive year with participation on a political level from Norway. This is not a coincidence. The relation between our two countries has been strong for many years now, and it is growing even closer and closer. The number and level of political meetings between Norway and Azerbaijan magnifies the importance of our bilateral relation. It is therefore with great pride and expectations I visit Baku for the first time as State Secretary of the ministry of Petroleum and energy in Norway.

Based on the success of the previous years, and looking around today, it is not hard to understand that this conference and exhibition ranks as on of the most important meeting-places for the petroleum industry.

Even though Azerbaijan is known as the "cradle" of petroleum production, and one of the most important petroleum provinces in the 19 ^th>, 20 ^th> and now the 21 ^th> century, the last decade as an independant country has been a new era in the Azerbaijani petroleum history. Your personal contributions to this development, Mr. President, can not be exaggerated.

Let me also at the outset congratulate you, the Milli Mejlis, government and whole Azerbaijani people with the recent ratification of the Baku-Tblisi-Ceyhan Main Export Pipeline agreement. This magnifies a tremendous step forward towards the realisation of the MEP-project. On which the further development of Azerbaijan's oil resources hinges.

The former Norwegian Prime Minister, Mr. Bondevik, was present at the signing of the Istanbul declaration last November. The Norwegian state oil company Statoil, will undoubtedly be among the sponsors of this new and important project.

Mr. President,
Azerbaijan and Norway share common challenges. Both Norway and Azerbaijan are relatively small countries, whose economy to a large degree is focused on optimal use of natural resources - like fishing, farming and petroleum production.

I know Azerbaijan is working hard to build up a modern national petroleum industry. Yesterday I had the honour of opening a joint Norwegian-Azerbaijani seminar devoted to the revitalisation of the Azerbaijan supplier industry. Norway shares the Azerbaijani goal of building up a world-class national petroleum supplier industry. Our own machine building and supply industry supports this policy and is interested in depening the engeneering and production cooperation with Azerbaijan.

Norway is a relatively young petroleum nation; at least compared to Azerbaijan, but in less than 30 years we have managed to build a competitive, world class petroleum industry.

Education, technology and capital resources has been key elements in the successful development of the Norwegian national petroleum industry. And to my country, the combination of state participation with the principle of market economy has proved successful in the whole range of economic and social development.

Our national petroleum industry is steadily increasing its activity level in other parts of the world. Several Norwegian companies have established themselves here in Baku. Statoil has taken great pride in being an active partner in the development of what we trust will become a "new" Azerbaijan petroleum era. I know that Statoil is fully committed to further developing its role as one of the leading foreign companies in Azerbaijan. We are pleased with what the Norwegian companies have accomplished so far, and know that the Norwegian companies present are looking for long-term commitment and co-operation with Azerbaijan.

The recent discovery of large gas reserves on the Azerbaijani sector of the Caspian Sea will enable Azerbaijan to enter into the league of main gas exporters in the region. Statoil is a substantial partner in the Shah Deniz project and I can assure you of Statoil's gas production and infrastructure capabilities, as Norway is one of the major producers and exporters of natural gas. Norway will continue to support Azerbaijan to become both a gas exporter as well as to strengthen the domestic natural gas industry.

We are together in the further development of an oil and gas industry in the Caspian Sea, in exchanging knowledge and experience. Through this business and governmental co-operation we are building ever-closer relations between our two countries. With different experience and different strengths, I know we have a lot to learn from each other.

The joint declaration signed during your visit to Norway in 1996 remains a basis of our bilateral relations. I wish to assure you of the value we attach to Norwegian-Azerbaijani relations. Under your leadership Azerbaijan has established itself as an important centre in the region, especially in the field of petroleum.

Norway's prime minister, Mr Jens Stoltenberg, who has had the honour of visiting your country a number of times, sends his most sincere greetings to you personally, Mr President, to the people of Azerbaijan and to the success of this highly recognised exhibition and conference.

Mr. President, please accept my complements on the Seventh consecutive Caspian Oil and Gas Exhibition and Conference.

Thank you for your attention.