Energy projects connecting Azerbaijan and Georgia

Use of natural resources in the interests of the Azerbaijani people and state, transportation of natural gas by pipeline. The main consumers of Azerbaijani energy resources. Activities of the state oil company of the Republic of Azerbaijan in Georgia.

Рубрика Экономика и экономическая теория
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Язык английский
Дата добавления 20.09.2020
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Energy projects connecting Azerbaijan and Georgia

S. Habibbayli

After the restoration of the state independence of Azerbaijan, one of the main goals was to use natural resources freely, in the interests of the Azerbaijani people and state. Since the early 1990's, several western companies have begun to show interest in the energy sources of the Caspian region. In the first years of independence, certain steps were taken to obtain energy resources and bring them to the world market. The "Contract of the Century" concluded on September 20, 1994, with 11 transnational oil companies worldwide, which laid the foundation of the oil strategy proposed by national leader Heydar Aliyev, allowed Azerbaijan to play an important role in the Caucasus and Caspian Sea region, turning it into one of the international centers for the production of energy resources.

After the signing of the "Contract of the Century", the key issue was finding favorable ways for oil and gas transit. The choice of Georgia as a transit country would meet the interests of Azerbaijan. Starting from 1999, the first oil was transported via the Baku-Supsa pipeline, and from 2006 on the Baku-Tbilisi-Ceyhan main export oil pipeline.

Transportation of gas, along with oil, is carried out through Georgia. Gas is transported to Georgia by the end of 2006 through the Baku-Tbilisi-Erzurum gas pipeline and from June 2007 to Turkey.

The Southern Gas Corridor, which is probably the largest gas pipeline project put forward by Azerbaijan, involving Georgia, delivers the Shahdeniz Phase 2 gas from the Caspian Sea to Europe. The South Caucasus Pipeline Project Expansion, part of this project, encompasses the construction of new pipelines and associated facilities in both Azerbaijan and Georgia. The opening ceremony of the first phase of the Southern Gas Corridor project was held at Sangachal Terminal on May 29, 2018.

Within the framework of the AGRI (Azerbaijan, Georgia, Romania Interconnector) project, which is one of the energy projects connecting Azerbaijan and Georgia, it is planned to transport natural gas through the pipeline to the Black Sea shores of Georgia, where it will be liquefied and transported by tankers to the terminal in Romania's Constanta port and then to the gas infrastructure of Romania and other European countries in the form of natural gas.

Georgia is not only a transit country for Azerbaijan, but also one of the largest consumers of hydrocarbon reserves. The State Oil Company of Azerbaijan Republic (SOCAR) has been operating in Georgia since 2006. SOCAR's activities in Georgia are carried out through "SOCAR Georgia Petroleum", "SOCAR Gas Export-Import", "SOCAR Georgia Gas", "SOCAR Georgia Gas Distribution", "Black Sea Terminal" and others.

Keywords: energy projects, hydrocarbon reserves, oil strategy, Baku-Tbilisi-Ceyhan main export route, Southern Gas Corridor.

Після того, коли Азербайджан відновив державну незалежність, одним із головних його завдань стало використання природних ресурсів в інтересах азербайджанського народу й держави. Вже на початку 1990-х років кілька західних компаній проявили інтерес до джерел енергії Каспійського регіону. Тому було вжито заходів, аби отримати ці енергетичні ресурси та вивести їх на світовий ринок. Укладений Азербайджаном 20 вересня 1994 р. "Контракт століття" з 11 транснаціональними нафтовими компаніями заклав підвалини власної нафтової стратегії, яку запропонував азербайджанський президент Гейдар Алієв. Реалізація цієї стратегії дозволила Азербайджану відігравати провідну роль у Кавказькому та Каспійському регіонах, перетворила його на один із міжнародних центрів видобутку та продажу енергетичних ресурсів. Опісля важливим стало питання пошуку шляхів транзиту нафти й газу. Вибір Грузії як транзитної країни відповідав би азербайджанським інтересам. Починаючи з 1999 року нафта транспортувалась трубопроводом Баку- Супса, а з 2006 року ще трубопроводом Баку-Тбілісі-Джейхан. Через Грузію транспортується також газ. З кінця 2006 року газ транспортується газопроводом Баку-Тбілісі-Ерзурум, а з червня 2007 року - до Туреччини.

Південний газовий коридор очевидно є найбільшим газовим проектом. Запропонований Азербайджаном та за участі Грузії, він покликаний постачати газ із родовища Шахденіз - із Каспію до Європи. Складовою цього проекту є розбудова Південно-Кавказького трубопроводу, що обумовлює будівництво нових трубопроводів й інфраструктурних об'єктів як в Азербайджані, так і Грузії. Першу чергу Південного газового коридору відкрито 29 червня 2019 р. на терміналу "Сангачал". В рамках енергетичного проекту AGRI(Азербайджан, Грузія, Румунія) заплановано транспортувати природній газ трубопроводом з Азербайджану до Чорноморського узбережжя Грузії, де його зріджуватимуть і танкареми транспортуватимуть до румунського порту Констанц. Там переведуть у газоподібний стан і заганятимуть у румунський газопровід, яким постачатимуть до європейських країн. transportation azerbaijani gas georgia

З іншого боку, Грузія є не лише транзитером, але й одним із найбільших споживачів азербайджанських енергетичних ресурсів. Державна нафтова компанія Азербайджанської Республіки (SOCAR) працює в Грузії з 2006 року. Її діяльність здійснюється через "SOCAR Georgia Petroleum", "SOCAR Georgia Gas Export-Import", "SOCAR Georgia Gas Distribution", "Чорноморський термінал" та ін.

Ключові слова: енергетичні проекти, запаси вуглеводів, нафтова стратегія, газопровід Баку-Тбілісі-Джейхан, Південний газовий коридор.

After the restoration of the state independence of Azerbaijan, one of the main goals was to use natural resources freely, in the interests of the Azerbaijani people and state. It is known that the largest natural resources of Azerbaijan, hydrocarbon reserves have been plundered by foreign colonists for many years. It was Azerbaijan's right to have its own hydrocarbon reserves, to produce them freely, and to bring the product to world markets through independent and reliable routes.

On the eve of the collapse of the USSR, certain ideas were heard about the extinction of hydrocarbon resources in the Caspian region [20, p. 284]. These were mainly the propagandistic nature of the information to keep Azerbaijan away from the energy market. But these ideas did not justify themselves. Since the late 1980's, several western companies have begun to show interest in the energy resources of the Caspian region. While some steps were taken to acquire energy resources and bring them to the world market in the early years of independence, the turning point in this area was followed by the oil strategy that Heydar Aliyev implemented after returning to power. Heydar Aliyev stressed the importance of using the oil and gas resources extremely effectively for Azerbaijan's development and strengthening: "Oil is the greatest wealth of Azerbaijan, and belongs to the people, not only to the present generation, but also to future generations" [2].

At the end of a few months of intense negotiations, the Agreement on the Joint Development and Production Sharing for the Azeri and Chirag Fields and the Deep Water Portion of the Gunashli Field in the Azerbaijan Sector of the Caspian Sea - "Contract of the Century" was signed with 11 international oil companies on September 20, 1994 [21]. This agreement, which laid the foundation of the oil strategy, enabled Azerbaijan to play an important role in the Caucasus and the Caspian Sea region, turning it into one of the international centers for the production of energy resources.

After the signing of the "Contract of the Century", the search for favorable routs for oil transit was started. Since Azerbaijan had no direct access to the world ocean, it was necessary to use the territory of one or more of the neighboring countries as a transit for oil transportation. The conflicts existing in the Caucasus region had a serious impact on oil transportation. The Nagorno- Karabakh conflict, formed as a result of Armenia's military aggression against Azerbaijan, and the war in Chechnya were just two of the reasons that prevent oil transportation [20, p. 310]. If Armenia recede its aggression policy and retreated its allegations concerning the occupied territories, perhaps the issue of transportation of oil through this country to Nakhchivan and then to the Mediterranean would be discussed. Armenia's aggressive policy deprived it of both its energy security and its involvement in all regional and global projects.

Russia persistently tried to transport oil through its territory. Russia's proposed Baku-Novorossiysk oil pipeline was old, with high transit fees and insufficient in terms of transmitters. The climatic conditions of the pipeline were also unfavorable. As mentioned above, the ongoing war in Chechnya was a serious threat to the security of the pipeline.

Iran, another neighboring state, was also interested in the transportation of oil through its territory. Iran offered the Baku-Tabriz-Nakhchivan-Ceyhan route. Although this route was economically advantageous, it could not be accepted by western companies for sanctions imposed on Iran. As the transit country was more focused on Georgia. It is true that there could be some difficulties in transporting oil from Georgia because of the Georgian-Abkhazian and the South Ossetian conflict. In general, the implementation of oil transportation through Georgia was the most optimal variant among the real options. Transportation of oil via Georgia was not considered a novelty. The cooperation between the two countries in this field has more than one century history. The Baku-Batumi oil pipeline, which was constructed in 1896-1906, was the first in Europe and the second major oil pipeline in the world [4, p. 6]. In 1907, this pipeline was put into operation. One of the first things that took place after the independence of Azerbaijan

Democratic Republic and the Democratic Republic of Georgia was the signing of an agreement on the restoration and normal operation of the Baku-Batumi oil pipeline [14]. Through this pipeline, kerosene and then crude oil were transported until 1930.

The President Heydar Aliyev found the solution to the dispute by dividing the oil pipeline solution into two phases - the transportation of primary oil and the transportation of the main export oil. Two routes were selected for export of primary oil: Baku-Novorossiysk and Baku-Supsa routes [22, p. 766]. The choice of two routes was the result of the deeply thought-out, balanced policy of national leader Heydar Aliyev.

After the route selection, the legal framework for their implementation was started. On February 18, 1996, an agreement was signed on the transportation of oil through the Baku-Novorossiysk route in Moscow [20, p. 315]. After the signing of the treaty, Chechnya declared its intention to become an independent entity in the transit of Azerbaijani oil. On the background of all this, the implementation of the Baku-Supsa route became more urgent. One of the main goals of Heydar Aliyev's visit to Georgia on March 8, 1996 was to get an agreement on the initial oil transportation through Georgia [11, p. 204]. The same day the agreement on the construction and operation of the Baku-Batumi pipeline between AIOC, Georgian International Petroleum Corporation and SOCAR was signed, and the agreement on construction of the oil pipeline from Batum to Supsa port was signed. This meant that Azerbaijani oil would be floated to the West after many years. Despite all the pressures, achieving an agreement once again demonstrated that both Azerbaijan and Georgia are committed to pursuing an independent policy. It also created conditions for further consolidation of relations between the two countries. Restoration and reconstruction of the 833-km long pipeline was started in [29]. The cooperation between the two countries contributed to the creation of new workplaces and improvement of the living conditions of the population, as well as the creation of modern infrastructure. Within the western route, the Supsa terminal was constructed in with the capacity of 400,000 tons [30].

On November 12, 1997, the first oil production from the Chirag field under the Contract of the Century began. Georgian President's participation (Georgian President Eduard Shevardnadze) in the event marked by the solemn highlighted the high level of bilateral relations between the two countries [20, p. 323]. The same day, the opening ceremony of the Sangachal station took place. On December 10, 1998, the oil refinery was launched from the Sangachal terminal to the Baku-Supsa Western Export Pipeline, at the ceremony attended by the President of the Georgian International Oil Corporation, G. Canturia. In April 1999, the Baku-Supsa pipeline was fully operated by the launch of the Supsa terminal. On April 17, 1999, solemn opening ceremonies of Baku-Supsa export pipeline and Supsa terminal in Georgia took place [4, p. 7]. Along with the Presidents of Azerbaijan and Georgia, the President of Ukraine L. Kuchma also attended the event. The western route was more advantageous than the North Route. First, transit fees were cheaper. Secondly, the area where it crossed was more secure. Third, it was more advantageous in terms of distance. Fourth, it was more favorable in terms of climatic conditions. Fifth, Azerbaijan's high quality oil could be delivered to buyers without interfering with other oils.

After agreements on initial oil export routes were reached negotiations on the main export route were intensified. On September 5, 1997, by the decree of the

President of the Republic of Azerbaijan Heydar Aliyev, a working group was established to select the main export oil pipeline route [9]. President Heydar Aliyev, despite all the pressure, tried hard to transport the main oil export route through Georgia and Turkey. The Baku-Tbilisi-Ceyhan route corresponded to the geopolitical interests of Azerbaijan. Western companies opposed this route claiming that requires more funds.

Russia still tried to prevent the transportation of Azerbaijani oil through other countries. For this purpose, former Russian Prime Minister Chernomyrdin visited Tbilisi in 1998 and tried to convince Georgian President E. Shevardnadze that this project was not a profitable business and that it would create an environmental crisis for Georgia [4, p. 10-11]. E. Shevardnadze, in turn, called on Russia to put an end to the pressure and declared its commitment to the project. Determination of Baku-Tbilisi- Ceyhan as the main export pipeline for the first time was fully known at the Trabzon meeting of the Presidents of Azerbaijan, Georgia and Turkey on April 26, 1998 [8]. All three presidents clearly stated that the main export pipeline should be the Baku-Tbilisi-Ceyhan.

On October 29, 1998, Turkish President SuleymanDemirel, President of the Republic of Azerbaijan Heydar Aliyev, President of Georgia Eduard Shevardnadze, President of Kazakhstan NursultanNazarbayev, President of Uzbekistan Islam Karimov and US Energy Secretary Bill Richardson signed an Ankara Declaration in the Grand National Assembly of Turkey on determination of the Baku- Tbilisi-Ceyhan route for delivering the energy resources of the Caspian region, especially the Azerbaijani oil to the world markets [20, p. 331-332]. This historic document has declared to the world its commitment to realize the Baku- Tbilisi-Ceyhan main pipeline.

Within the framework of the OSCE Istanbul Summit on November 18, 1999, took place signing ceremony of "An agreement between the Republic of Azerbaijan, Georgia and the Republic of Turkey on the transportation of crude oil through the Baku-Tbilisi-Ceyhan main export pipeline through the territories of the Republic of Azerbaijan, Georgia and the Republic of Turkey", to support the Baku- Tbilisi-Ceyhan main export pipeline project, Istanbul Declaration between the Republic of Azerbaijan, Georgia and the Republic of Kazakhstan on the testimony of the United States to involve Kazakh oil in this project, Intergovernmental Declaration on the Trans-Caspian Gas Pipeline between the Republic of Azerbaijan, Georgia, Turkmenistan and the Republic of Turkey, Memorandum of Understanding between Azerbaijan, Georgia and the Republic of Turkey as a document supporting the development of Azerbaijani gas projects and the sale of Azerbaijani gas to the Republic of Turkey and other international markets [5]. Prior to the summit, Azerbaijan International Operating Company predicted that the price of the Baku-Tbilisi-Ceyhan oil pipeline would be up to $ 3.7 billion. The work proved that this figure was wrong, and the project cost was $ 2.4 billion. Turkey took the risk within its territory within the framework of the project and the International Operations Company undertook the risk in the territory of Georgia and Azerbaijan.

In February 2000, the next negotiations between representatives of Azerbaijan, Turkey, Georgia and the United States took place in Istanbul. In the negotiations, the text of the agreement was agreed between Georgia and the investing companies. However, Georgia, which received transit status, did not agree with transit definitions and delayed the project for some time. To overcome this problem, The President of the Republic of Azerbaijan Heydar Aliyev went on state visit to Georgia. During the visit, which took place on March 22-23, 2000, the Azerbaijani side reached a consensus on compromise on the transit tariff [19]. According to the agreement, the Georgian side would receive a transit fee of $ 1.3 million for each ton of oil passing through its territory. It would bring $ 25-30 million per year to Georgia.

On April 28,2000, representatives of Turkey, Azerbaijan and Georgia signed the final document of the Baku-Tbilisi-Ceyhan main export oil pipeline at the US Department of State [20, p. 343]. The parliaments of all three countries ratified this document. This was the next successful step taken to realize the transportation of Caspian oil to the world markets. The signing ceremony of the Baku-Tbilisi-Ceyhan main export oil pipeline was held on October 18 in Tbilisi and on October 19 in Turkey. Finally, after several years of intense negotiations, meetings, and agreements, the foundation of the Azerbaijani part of the Baku-Tbilisi-Ceyhan main export oil pipeline was laid on September 18,2002 [10]. A groundbreaking ceremony of the Georgian part of the pipeline was held in Tetri-Tskaro on May 23, 2003. On October 16, 2004, the ceremony of uniting the Azerbaijani and Georgian parts of the Baku-Tbilisi-Ceyhan main export oil pipeline was held on the border with Georgia's Gardabani region - in the village of Boyuk-Kesik, Agstafa region. President of the Republic of Azerbaijan IlhamAliyev and President of Georgia Mikhail Saakashvili attended the ceremony called "Golden Weld" [5]. On May 25, 2005, the Baku-Tbilisi-Ceyhan oil pipeline was filled and the Azerbaijani part of the pipeline was put into operation [13, p. 122]. The Georgian part of the pipeline was officially opened on October 12, 2005 in the territory of the #1 pump station located in the Gardabani district of Georgia [25]. On May 28, 2006, the oil flowing through the Baku-Tbilisi- Ceyhan oil pipeline reached the port of Ceyhan [1].

As a transit country, Georgia has received substantial economic and political revenues from this project. It is no coincidence that, in one of his interviews, M. Saakashvili called the Baku-Tbilisi-Ceyhan oil pipeline "way of life" for Georgia [4, p. 19]. First of all, the pipeline will bring $ 2.5 billion revenue to Georgia's state budget over the next 40 years. Construction of the pipeline means the flow of foreign investment to the country. This means improvement of the infrastructure, creation of new jobs. Over 2,500 workers were used during the construction in Georgia. The pipeline has increased the attention of the world community to Georgia. This has contributed to the strengthening of security and stability in the country. The Georgian-Azerbaijani relations have risen to a strategic partnership.

In addition to oil pipelines, the Baku-Tbilisi railway is widely used to transport oil products from the Caspian basin. In this way, about 5-10 million tons of oil is delivered to Georgian ports of Batumi, Kulevi and others [16, p. 663].

One of the energy projects that Azerbaijan and Georgia has partnered with is the Baku-Tbilisi-Erzurum (South Caucasus Pipeline) gas pipeline project. The Baku-Tbilisi- Erzurum gas pipeline is intended for transportation of gas extracted from the Shah Deniz field in the Azerbaijani sector of the Caspian Sea. On June 4, 1996, an agreement on production sharing was signed in Baku, which envisages the joint development of this field with foreign oil companies [22, p. 904]. On September 29, 2001, the signing of several important documents, between the President of the Republic of Azerbaijan Heydar Aliyev and the President of Georgia, Eduard Shevardnadze, who was in Baku on an official visit, including the transportation of gas extracted from the Shah Deniz field in the Azerbaijani sector of the Caspian Sea via the Baku-Tbilisi-Erzurum route, were an important guarantee for the expansion of cooperation between the two countries, as well as security, peace and stability in the region [12, p. 183]. On October 16, 2004, the construction of the South Caucasus Pipeline began on the day of merging of Azerbaijani and Georgian parts of Baku-Tbilisi-Ceyhan oil pipeline. Gas transportation through the pipeline started to Georgia from the end of 2006, and from June 2007 to Turkey, which has been constructed for almost two years [31].

Southern Gas Corridor probably is one of the largest projects launched by Azerbaijan, involving Georgia. According to this project, gas extracted from the Shah Deniz Stage 2 will be transported from the Caspian Sea to Europe, at a distance of 3,500 kilometers. This requires expansion of existing infrastructures and constructiona of a new pipeline chain. The expansion of the existing South Caucasus Pipeline through the new parallel pipeline along the territory of Azerbaijan and Georgia, Trans- Anatolian Pipeline (TANAP), to be implemented according to the agreement signed between Azerbaijan and Turkey on June 27, 2012 [6, p. 22] and Trans-Adriatic Pipeline (TAP) project, which is planned to be implemented under the Intergovernmental Agreement signed between Albania, Italy and Greece in February 2013, are key segments of this corridor.

The Expansion of the South Caucasus Pipeline (ESCP) project involves new sections of the pipeline and associated facilities to be built both in Azerbaijan and in different parts of Georgia. The ESCP project consists of pipelines with a total length of 424 km in Azerbaijan and 62 km in Georgia.

The foundation of the Southern Gas Corridor was laid in Baku - at the Sangachal Terminal on September 20, 2014. The groundbreaking ceremony was attended by President of Azerbaijan Republic IlhamAliyev, President of the Republic of Bulgaria Rosen Plevneliev, Prime Minister of Greece Antonis Samaras, Georgian Prime Minister IrakliGaribashvili, The Prime Minister of Montenegro Milo Djukanovic, Turkish Minister of Energy and Natural Resources TanerYildiz, Italian Minister of Economic Development Claudio De Vincenti, the chief executive of BP Robert Dudley and other officials, representatives of the company [24]. At the groundbreaking ceremony of the Southern Gas Corridor, President IlhamAliyev said: "As a result of implementation of this project there will not be a loser. Everyone will benefit. The transit countries, as well as the countries that are considered to be consumers, will also achieve diversification of gas transportation. The Southern Gas Corridor will provide European energy security."

On February 12, 2015, the first meeting of the Southern Gas Corridor Advisory Council, the second meeting on February 29, 2016 and the third meeting on February 23, 2017 were held in Azerbaijan. A Joint Declaration was signed by officials from 12 countries - Azerbaijan, Georgia, Turkey, Greece, Bulgaria, Albania, Italy, Croatia, Montenegro, the United States, Great Britain and the European Commission on the outcomes of the third meeting of the Advisory Council. In the Declaration, the participants stated that they are committed to continuing and deepening long-term strategic ties between energy carriers, suppliers and consumers of the countries of the Southern Gas Corridor in order to ensure reliable and stable supply of gas from Azerbaijan to Georgia, Turkey and then to European countries. Welcomed the significant achievements made in the implementation of this project since the 1st and 2nd ministerial meetings in Baku and stated that they will support further efforts of the respective countries to finalize all the necessary procedures for the completion of the construction [18].

The fourth meeting of the ministers within the Southern Gas Corridor Advisory Council was held at the Heydar Aliyev Center in Baku on February 5, 2018 [25]. Speaking at the meeting, President IlhamAliyev said that significant progress was made in the implementation of the Southern Gas Corridor and most of the work was done. He emphasized that regional cooperation established between Azerbaijan, Georgia and Turkey 20 years ago played an important role in the development of energy sector in our region and Europe. Opening ceremony of the first phase of the Southern Gas Corridor project was held at Sangachal Terminal on May 29, 2018 [7]. The Southern Gas Corridor, for the first time, will change the energy map of the entire region by connecting the gas supply to the European markets in the Caspian region.

One of the energy projects that connects Azerbaijan and Georgia is AGRI (Azerbaijan, Georgia, Romania Interconnector). Azerbaijan, Georgia and Romania signed a Memorandum of Understanding on implementation of the project on gas supply in Bucharest on April 13, 2010 [3]. The AGRI project envisions transporting natural gas through the pipeline to the Black Sea shores of Georgia, where it will be liquefied and transported by tankers to the terminal in Romania's Constanta port and then to the gas infrastructure of Romania and other European countries in the form of natural gas. In September of that year, at the summit in Baku, which the presidents of Azerbaijan, Georgia and Romania and Prime Minister of Hungary attended, Baku Declaration supporting the AGRI project was signed [17]. A meeting of energy ministers of the AGRI project participant countries was held in Bucharest, Romania, in 2015 [26]. At that meeting, Deputy Minister of Energy of Georgia, Mariam Valishvili informed the participants of the event about the importance and support of the country for the implementation of the AGRI. The Joint Declaration adopted at the end of the meeting expressed support for the future development of the AGRI project as part of the Southern Gas Corridor, which contributes significantly to Europe's energy security.

Georgia is not only a transit country for Azerbaijan, but also one of the largest consumers of hydrocarbons in Azerbaijan. In the most difficult days, Azerbaijan has always extended its fraternal hand to Georgia. An explosion at a gas pipeline near the Georgian-Russian border on January 22, 2006 and a high-voltage power line "Kavkasioni" faced the energy crisis in Georgia [15]. At that time, the Georgian leadership asked for gas and electricity from Azerbaijan. Azerbaijan responded positively to Georgia's request and on January 23, 3 million cubic meters of gas entered the Georgian territory. First of all, this gas was given to St. Stepan (former Kazbegi) and Dusheti districts with a frost of above 20 degrees, and the gas supply to Tbilisi was restored by the end of the day. Thus, in the frozen winter days, Georgia was able to escape the energy crisis with the help of Azerbaijan.

The State Oil Company of Azerbaijan Republic (SOCAR) has been successfully operating in Georgia for many years. SOCAR's activities in Georgia are carried out through "SOCAR Georgia Petroleum", "SOCAR Gas Export-Import", "SOCAR Georgia Gas", "SOCAR Georgia Gas Distribution", "Black Sea Terminal" and others. Currently, about 4,000 employees are operating in SOCAR-owned companies in Georgia. Over $ 1 billion invested in Georgian economy by SOCAR and its affiliated companies in 2007-2017. Socar Georgia Petroleum (SGP) has been operating in Georgia since August 2006, with SOCAR Georgia Gas, and the Black Sea Terminal (Kulevi Black Sea Terminal) since 2008 [27, p. 5-6]. The main activity of SGP is to organize wholesale and retail sales of oilproducts from Azerbaijan and other exporting countries. Currently, 116 petrol stations operate under SOCAR brand in Georgia. In general, $ 196 million was invested by the SGP in Georgia for 2006-2017. In 2017, the company sold 347 million liters of oil products [23]. SOCAR Georgia Gas (SGG) operates on implementation of gasification program of Georgian territory. Under an agreement signed between the Georgian government and SOCAR on December 12, 2008, SGG has to supply 150,000 subscribers in the country and invest $ 40 million into the country [28]. In 2013, the Government of Georgia and SGG signed a Memorandum on the implementation of the second phase of the existing Gasification Program. According to the memorandum, in 2017, SOCAR had to provide 75% of Georgia's population with natural gas through Georgia Gas Gasification Project. During the second phase of the program, in 2008-2017, SGG provided 250,000 subscribers with gas and invested around $ 290 million in investment. SGG currently serves over 590,000 subscribers throughout Georgia. Generally, 1.4 billion cubic meters of natural gas was imported to the Georgian market in 2008-2017. According to the 2018 forecast, the volume of imported gas will be 1.8 billion cubic meters. The main activity of SOCAR Gas Export-Import Company is aimed at supplying natural gas to two groups of consumers: population and energy production enterprises, which are necessary for continuous gas supply in all social sectors of Georgia.

SOCAR Georgia Gas Distribution's capital expenditure for the year 2017 was about $ 11.4 million. During this period, 137.9 million cubic meters of natural gas was sold to the Georgian market and 194.2 million cubic meters of natural gas was transported.

Black Sea Terminal - Kulevi Oil Terminal has been put into operation since 2008. The terminal is intended for transportation of oil and oil products from Azerbaijan and the Central Asian region. During 2008-2017, the volume of transported goods via the terminal was 23 million m / t.

Summarizing the abovementioned, it can be concluded that Georgia is the only partner of Azerbaijan in the South Caucasus and the relations between the two countries are at the level of strategic partnership. Because the economic lines that are important for Azerbaijan go through its territory, Georgia, in turn, is extremely skillful of this factor and uses its "transit country" status quite enough. Azerbaijan's energy projects are the main driving force behind Georgia's development. The energy projects implemented by Azerbaijan are the main driving force not only their own, but also in the development of Georgia. From the restoration of independence to this day, Azerbaijan has always played a role of a great brother against Georgia, compromising on some issues, has shown that historic partnership and neighborhood are more important than material interests at some moments.

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