International Cooperation and Strategic Partnerships of Azerbaijan in the Oil and Gas Sector: The “Contract of the Century”

Abstract

As is well known, energy cooperation in Azerbaijan’s most valuable natural resource sectors—oil and gas—has been steadily developing year by year. Our country plays a vital role in Europe’s energy security, in the efficient utilization of the Caspian region’s energy resources, and in major international energy projects. In order to demonstrate the sources of this development and to pave the way for new partnerships, my article presents factual evidence of Azerbaijan’s progress in the energy sector and proposes several recommendations.

Currently, we are witnessing the successful continuation of the far-sighted policies initiated by our national leader, Heydar Aliyev. Each of his contributions to this sector aimed to strengthen Azerbaijan’s position in the South Caucasus and to unlock its potential opportunities. One of the landmark initiatives of the national leader was the signing of the “Contract of the Century”—a project considered a guarantee of Azerbaijan’s independence—despite the political tensions of the time. This agreement not only laid the foundation of Azerbaijan’s oil and gas strategy but also marked a turning point for the country’s overall development. The era in which oil became a geopolitical instrument began with the signing of this contract in 1994.