Azerbaijan Still Possesses Significant Volumes Of Oil And Gas Minister

(MENAFN- Trend News Agency) BAKU, Azerbaijan, June 11. The oil and gas sector continues to play a very important role in Azerbaijan's economy today, Azerbaijan's Minister of Economy Mikayil Jabbarov said in an exclusive interview with AZERTAC and İTV.

“The oil and gas sector still plays a very significant role in our economy today. As I have already noted, it accounts for 30 percent of gross domestic product (GDP), which is a very substantial figure. At the same time, it plays an important role in generating the country's revenues. This is the case purely from an economic perspective, but at the same time, it is clear that for many decades there has been no real alternative to this sector. When shaping our economic policy, we must approach this as follows: recognize the importance of the oil and gas sector, but not tie our development to fluctuations in global market prices, and instead see the path forward in ensuring economic resilience.

As for our oil reserves and developments in the oil and gas industry, we passed the peak of production 16 years ago. That was in 2010, when around 51 million tons of oil were produced in the country. By comparison, in 2025 this figure stood at 27.7 million tons. Yes, natural gas production has increased significantly compared to that period. However, in value terms, these factors are not fully interchangeable. In the current new conditions, I would divide our strategy in this area into two parts.

The first is that Azerbaijan still possesses significant volumes of oil and gas. New projects will be launched, and stable and sustainable operations will be ensured at existing fields. Work is actively ongoing on the start of deep gas production from the Azeri-Chirag-Gunashli field, the full-scale development of the Absheron field, the commencement of production at the Babek field, the second phase of the Umid field development, the development of rich resources in the Bahar and Gum Deniz projects, as well as the Karabakh project. This is one side of the issue; therefore, our country will remain a reliable producer and exporter of oil and gas for many years and decades to come.

On the other hand, we should not forget that until now oil and gas production in the country has been carried out using traditional methods. Unconventional extraction methods that have emerged in the sector over the past decade have not yet been applied here, but they are currently being studied. Our country has relevant resources in this area. SOCAR and a number of foreign partners have already signed various memoranda of understanding and framework agreements in this regard. However, I would like to emphasize the following: when planning our economy and revenues, we should treat these projects as a kind of bonus. Even if they are not realized, our main path remains the development of a diversified economy capable of producing competitive goods in many sectors. Let us treat this as a bonus-if it does not materialize, we will still achieve our main goals.

The second part of the strategy is that we do not intend to lose the centuries-old traditions, knowledge, and expertise of our country in this field, or its position in global and regional markets. That is why you can observe that the activities of our leading institution in this area-SOCAR-have recently expanded into foreign markets and have become more active. Looking back 18 years, the entry into the energy market of friendly Türkiye and SOCAR's subsequent transformation into the country's largest energy investor, owner of one of the most modern oil refineries, the only petrochemical complex, logistics terminals, and key trunk pipelines marked the beginning of this long-term strategy and its tangible realization.

Today, however, SOCAR is acquiring stakes in various projects abroad not only in downstream infrastructure but also in upstream production. This year, investment projects were launched in the United Arab Emirates and, for the first time on the African continent, at a major field in Côte d'Ivoire. In addition, participation has been secured in a gas production project in Israel, and this activity will continue. We believe this is possible due to our resource base, expertise, professional capabilities, and the role our country plays internationally.

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