CASPIAN OIL & GAS - A BRAND WITH WORLDWIDE RECOGNITION

For 18 years now, Baku has been opening its doors to the largest event in the oil and gas sector of the Caspian region - the International Caspian Oil & Gas Exhibition & Conference Incorporating Refining and Petrochemicals - which is organized by the British company ITE Group PLC and its partner in the Caucasus, Iteca Caspian. Every year, the exhibition and conference gathers leading specialists and main players in the international oil industry for discussion of the problems of the oil and gas sector and demonstration of the latest achievements in the field of extraction and refining of oil and gas.

The exhibition and conference are in the focus of attention and enjoy special support from government bodies. The regular participation of Azerbaijani President Ilham Aliyev in the gala opening ceremonies every year helps maintain the status of the exhibition. Caspian Oil & Gas has traditionally enjoyed support from the Industry and Energy Ministry of Azerbaijan and the company SOCAR. For six years now, the exhibition has been recognized by the UFI (the Global Association of the Exhibition Industry).

This year too, Caspian Oil & Gas has achieved one of its main objectives - promoting business cooperation at the international level. Iteca Caspian Executive Director Farid Mammadov discusses the important event in greater detail in his interview with R+.

- The oil and gas exhibition has traditionally been an indicator of sorts of the economic activity of the country. How would you describe this year's exhibition from this point of view? What was the most noteworthy development this year, in your opinion?

- You are absolutely right when you note that the Caspian Oil & Gas exhibition is an engine of Azerbaijan's exhibition industry. It was the first specialized exhibition in Baku after Azerbaijan gained its independence. From that time, it has remained the most significant event in the oil and gas industry of the region. I have to say that Caspian Oil & Gas has already become a brand name of sorts which is recognized all over the world. Traditionally, the first week of June in Baku is the time and place where specialists of the oil and gas sector and high-level guests who are associated with the sector in Azerbaijan meet. And all the leading players of the oil and gas industry know that this is where they should be.

The high level of the exhibition this year should be noted. Leaders of the USA, Britain, Turkey and the EU sent their letters of greeting to the event. Among the high-level guests of the exhibition and conference were Prince Haakon of Norway, European Energy Commissioner Guenther Oettinger, the special envoy of the United States secretary of state for Eurasian energy, Richard Morningstar, Georgian Energy Minister Aleksander Khetaguri, Norwegian Petroleum and Energy Minister Ola Borten Moe and others. Among the participants in the event were representatives of specialized ministries of Azerbaijan, Hungary, Ukraine, Russia and Turkmenistan and representatives of large oil and gas companies and organizations. More than 40% of the exhibition area was occupied by large international or state-owned oil companies and corporations, most of which are permanent participants in the Caspian Oil & Gas exhibitions. Among them were BP, OMV, SOCAR, Statoil, Total, TPAO and many others. We are pleased that the number of participating local companies is growing. This year, they accounted for 38% of the total number of participants. Despite the fact that the exhibition has been organized for the 18th time now, Caspian Oil & Gas remains attractive for new participant companies. This year, first-time exhibitors accounted for 15% of the total number of exhibitors. The exhibition area increased by 25% compared to last year. In the 18 years of its history, more than 5,980 companies from 70 countries have taken part in the exhibition. Also, all our guests noted the very high level of the Caspian Oil & Gas Conference this year.

- How productive was the oil and gas exhibition this year? Are there concrete agreements between participants?

- It has become a clich? that agreements have to be signed at every exhibition. I have to say that this is no longer relevant. The results of the exhibition depend on the objectives which the participants set for themselves: initial contacts may be established during an exhibition, someone may want to demonstrate their leadership in the sector, others want to enter the market by taking part in the exhibition, and still others want to see how they measure up with their rivals. In other words, there are a great many different strategies and marketing goals for taking part in the exhibitions. In addition, the repercussions of participation in a particular project are often long-term and yield results only some time after the event. We as organizers never ask participants to give us this type of information because it is a commercial secret. If companies state their goals and allow us to announce that the company's participation was successful, we are always glad to make this information public. I have to say about Caspian Oil & Gas that the brand name is widely known and non-participation in a respected and serious exhibition of this calibre may raise many questions among exhibitors and other interested parties: "Why has this company not shown up at a leading oil and gas event?"

- What is your estimate of the role of the Caspian Oil & Gas Conference in discussing the most important energy problems of the region?

- This year, there were many high-level guests. Among the speakers were SOCAR President Rovnaq Abdullayev, European Energy Commissioner Guenther Oettinger, the special envoy of the United States secretary of state for Eurasian energy, Richard Morningstar, Deputy Norwegian Foreign Minister Espen Barth Eide, the head of the International Energy Agency Directorate of Energy Markets and Security, Didier Houssin, the deputy state secretary for energy at the Hungarian National Development Ministry, Pal Kovacs, the secretary general of the Forum of Gas Exporting Countries, Leonid Bokhanovskiy, the Caspian energy advisor at the British Foreign and Commonwealth Office, Angus Miller and others.

The conference touched on most issues of current importance and drew great interest not only in the region. In terms of the topics it covered, this year's conference was a continuation of last year's, and this is an indicator of sorts of the stability and importance of Azerbaijan as an oil- and gas-producing and transporting country. What made this year's Caspian Oil & Gas different was the discussion of new projects in the fields of oil production, petrochemicals and oil and gas processing. It was in the focus of all the companies and organizations that have interests in the region. Also in the focus of attention was a meeting dedicated to oil and gas transportation. The conference helped highlight once again the participants' positions on involvement in oil and gas projects. All this caused a lively debate during the round table meeting which concluded the work of the conference. The interesting discussions and useful debates during the conference will have practical consequences in the sector very soon. So, we can say with confidence that Caspian Oil & Gas is a leading regional event in this sector. And in connection with this, I would like to thank the Azerbaijani Industry and Energy Ministry for its support and SOCAR for its invaluable contribution to this conference.

- How successful was this year's spring exhibition season in Azerbaijan? What innovations would you highlight?

The spring period of the 2011 exhibition season was very successful. We again organized the AutoShow exhibition this year, which was not organized last year because there were no exhibition halls worthy of it. Also, all other exhibitions demonstrated growth, both in terms of the area and in terms of the number of participants. We reported growth rates of 20% to 30% at all our exhibitions. In addition, we launched two new projects. They are the 1st Caspian International Plastics and Rubber Exhibition, Plastex Caspian, which, despite the fact that it was held for the first time, stirred great interest among foreign companies. For example, together with commercial companies, national stands of Austria and Germany were also present at the exhibition. Together with Caspian Oil & Gas, a new important exhibition Caspian Power, the 1st Caspian International Power and Alternative Energy Exhibition, was launched. The leaders of the republic attach great importance to the development of alternative energy sectors. On the Azerbaijani president's initiative, a number of projects in this field are being implemented. In this year's exhibition, companies that are well-known in the market took part, including Azenco STP Sumqayit Technologies Park, Azerenergy JSC, Goknu Baki LLC, Nexans Turkiye Azerbaijan Branch office, Power & Engineering Solutions, Schneider - Electric, TE Connectivity - TYCO Electronics Raychem GMBH, TURQUOISE LLC and others. Because the alternative energy issue is one of the most pressing Azerbaijan has every possibility to develop it, we predict both the qualitative and quantitative growth of this exhibition in the future.

In addition to the development of our projects, we are also developing the exhibition infrastructure. This year, to facilitate the flow of visitors, we introduced a system of electronic registration for visitors, which greatly simplifies the process of registration at the exhibition. Also, together with our partners, the Baku Expo Centre, we continue to offer a transportation service for visitors to the exhibition in comfortable coaches to the exhibition centre and back. So, the first half of the season was very positive, and the second half of the year promises to be just as busy and productive.

- What are your plans for next season? In what directions will Iteca Caspian develop?

In the autumn, we plan to organize 11 different exhibitions in Azerbaijan. Among these are traditional exhibitions including BIHE, Education and Career, BakuBuild, BakuTel and others. All of our exhibitions will be organized in Baku at the Expo Centre. Therefore, one of the objectives of the company is increasing the area available for exhibitions and consolidation of our current projects. It is important to make Baku the undisputed leader in the exhibition industry in the region. We will also keep an eye on the sectors of the economy and conduct marketing studies to launch new regional exhibition projects in Azerbaijan.