Government and Industry Cooperation in Practice: Azerbaijan's Experience

Abstract

In recent times, Azerbaijan has seen the development of a significant modern offshore industry. The oil and shipping industries in Azerbaijan bring economic benefits but also give rise to the need for robust oil spill prevention and preparedness measures. Azerbaijan signed the International Convention on Oil Pollution Preparedness, Response and Cooperation (OPRC) in 2004 and continues to develop and refine its national system of oil spill response. This paper discusses how the Azerbaijan government and key players in the oil industry have successfully worked together to achieve alignment in prevention, protection and response to major incidents. The implementation of the OPRC Convention is the responsibility of the Ministry of Emergency Situations (MES) of the Republic of Azerbaijan. Within the national response system a national oil spill contingency plan has been developed. The main offshore developments in the Caspian since the 1990s have been led by BP, as operator of a number of Production Sharing Agreements. BP has implemented comprehensive oil spill response plans and is working in partnership with MES to integrate this planning into the national framework. The oil spill management systems adopted by BP and the government are compatible and commensurate with guidance published by the International Maritime Organization in 2011. These aligned management systems allow for an effective Joint Command and coordination of resources in the case of a major incident. The key to building effective oil spill preparedness are a willing dialogue, integrated command structure, joint training and exercising and upgrade of hardware and information systems' software. The cooperation between government and BP relating to offshore risks strengthens the national capacity to deal with spills risks other than from offshore platforms, including the anticipated increase of oil shipments across the Caspian Sea. Furthermore, these efforts have been supported by international organizations and the regional industry initiative, OSPRI, of which BP is a member. The experience of Azerbaijan provides a model demonstrating how partnership between government and industry can achieve synergy and it confirms the importance of signing and implementing the OPRC Convention.

Comparative Characteristics of the Legal and Regulatory Framework of the Oil Industry in Sudan and Azerbaijan

“…After that, many regulations and legislation related to the sectors related to the oil industry resulted, such as environmental protection laws, investment laws, and the distribution of oil revenues, in addition to laws and agreements governing the sharing of oil fields between countries, as is the case in the Caspian Sea, the North Sea, as well as common fields between some countries (Hassanov et al, 2011) (Nakhle, 2004) and The Arabian Gulf. In sub-Saharan Africa, we find some legislation and agreements related to the crossing of oil pipelines, as is the case between Sudan and the state of South Sudan after separation.…”