page_title: Azerbaijan
section_title: Energy and natural resources
hierarchical_section_title: Azerbaijan / Economy / Energy and natural resources
caption_attribution_description: Русский: Станок-качалка для механической добычи нефти штанговыми глубинными насосами.
context_page_description: Azerbaijan, officially the Republic of Azerbaijan, is a country in the Caucasus region of Eurasia. Located at the crossroads of Eastern Europe and Western Asia, it is bounded by the Caspian Sea to the east, Russia to the north, Georgia to the northwest, Armenia to the west and Iran to the south. The exclave of Nakhchivan is bounded by Armenia to the north and east, Iran to the south and west, and has an 10 km long border with Turkey in the northwest.
  The Azerbaijan Democratic Republic proclaimed its independence in 1918 and became the first secular democratic Muslim-majority state. In 1920, the country was incorporated into the Soviet Union as the Azerbaijan Soviet Socialist Republic. The modern Republic of Azerbaijan proclaimed its independence on 30 August 1991, shortly before the dissolution of the USSR in the same year. In September 1991, the Armenian majority of the disputed Nagorno-Karabakh region seceded to form the Republic of Artsakh. The region and seven adjacent districts outside it became de facto independent with the end of the Nagorno-Karabakh War in 1994.
context_section_description: Two-thirds of Azerbaijan is rich in oil and natural gas.
  The history of the oil industry of Azerbaijan dates back to the ancient period. Arabian historian and traveler Ahmed Al-Belaruri discussed the economy of the Absheron peninsula in antiquity, mentioning its oil in particular. There are many pipelines in Azerbaijan.
  The region of the Lesser Caucasus accounts for most of the country's gold, silver, iron, copper, titanium, chromium, manganese, cobalt, molybdenum, complex ore and antimony. In September 1994, a 30-year contract was signed between the State Oil Company of Azerbaijan Republic (SOCAR) and 13 oil companies, among them Amoco, BP, ExxonMobil, Lukoil and Equinor. As Western oil companies are able to tap deepwater oilfields untouched by the Soviet exploitation, Azerbaijan is considered one of the most important spots in the world for oil exploration and development. Meanwhile, the State Oil Fund of Azerbaijan was established as an extra-budgetary fund to ensure macroeconomic stability, transparency in the management of oil revenue, and safeguarding of resources for future generations.
  Access to biocapacity in Azerbaijan is less than world average. In 2016, Azerbaijan had 0.8 global hectares of biocapacity per person within its territory, half the world average of 1.6 global hectares per person. In 2016 Azerbaijan used 2.1 global hectares of biocapacity per person - their ecological footprint of consumption. This means they use more biocapacity than Azerbaijan contains. As a result, Azerbaijan is running a biocapacity deficit.
  Azeriqaz, a sub-company of SOCAR, intends to ensure full gasification of the country by 2021.
  Azerbaijan is one of the sponsors of the east–west and north–south energy transport corridors. Baku–Tbilisi–Kars railway line will connect the Caspian region with Turkey, is expected to be completed in July 2017. The Trans-Anatolian Natural Gas Pipeline (TANAP) and Trans-Adriatic Pipeline (TAP) will deliver natural gas from Azerbaijan's Shah Deniz gas to Turkey and Europe.
  Azerbaijan extended the agreement on development of ACG until 2050 according to the amended PSA signed on 14 September 2017 by SOCAR and co-ventures (BP, Chevron, INPEX, Equinor, ExxonMobil, TP, ITOCHU and ONGC Videsh).
caption: A pumping unit for the mechanical extraction of oil on the outskirts of Baku
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