OUT OF THE WOODS

Azerbaijan, today, is among the leading world's leading countries in the sphere of energy security. Baku's energy policy has made it a key partner of the international community in the South Caucasus. This cooperation gained particular significance with the construction and commissioning of the Baku-Tbilisi-Ceyhan (oil) and the Baku-Tbilisi-Erzurum (gas) pipelines. These projects have an exceptional importance in ensuring the energy security of Azerbaijan proper, the region as a whole and the Euro-Atlantic area. They have also strengthened the country's political standing. In general, the projects implemented within the framework of the Contract of the Century have become a strategic security factor for the country. 

At present, Azerbaijan's domestic demand for gas is met in full by gas from the Azeri-Chirag-Guneshli and Shah Deniz fields. Azerbaijani gas is exported to Georgia and Turkey and, starting this year, to Russia. Agreements have been signed for the export of at least 500 million cubic metres a year. A similar agreement has been signed with Iran.

Azerbaijan's energy security is based on the oil strategy developed by national leader Heydar Aliyev back in 1994. The signing of the Contract of the Century paved the way for major, long-term investment in the national economy and, most importantly, laid the foundation for a modern, independent foreign policy. "Azerbaijan embarked on its energy strategy long before energy security issues became so important for European markets. In 1994, we invited the world's leading oil companies to invest in the Azerbaijani sector of the Caspian Sea. We thus opened the Caspian Sea and its resources to international cooperation and fulfilled all our obligations," stated Azerbaijani President Ilham Aliyev, who is successfully continuing the policy initiated by Heydar Aliyev. "We are convinced that only the unity of consumer and producer interests can be beneficial. Energy - oil and gas - must not be a cause of stand-offs or other problems, it must serve cooperation and friendship. Azerbaijan is the European Union's friend. Our country is dedicated to a policy of European integration. The country already has the infrastructure and major oil and gas fields, and is ready to work hard," the president added. 

Taking a strategic view of energy security issues, the head of state signed the "State Programme for the Development of the Fuel and Energy Sector in the Azerbaijan Republic for 2005-2015" on 14 February 2005, the "State Programme for the Socio-economic Development of Districts of the Azerbaijan Republic for 2004-2008" on 11 February 2004 and the "State Programme for the Development of the Settlements of Baku for 2006-2007" on 27 February 2006. A number of other fundamental programmes for the development of different economic sectors have been adopted; their implementation has contributed to energy security and facilitated balanced economic development.

The success of energy projects is closely intertwined with their security. Against the backdrop of growing interest in Azerbaijan's energy resources, the attention of the world's centres of power and its developed countries, is focused on the new Caspian fields. The influence of this factor on the geopolitical situation in the region, the situation in the world's oil and gas markets and the prospect of turning the region into a political and economic centre have contributed to the enhancement of the geopolitical interests of different countries and circles in the Caspian, including the secret services of hostile countries and the competition. Conflict between major corporations, which are engaged in bitter competition, and the interests of a number of petroleum states opposed to the Caspian's becoming a significant source of energy, are also potential threats to the security of trans-national energy projects. Azerbaijan's oil strategy is being implemented in cooperation with countries represented in the international anti-terror coalition, and the threat of terrorist actions and provocations against the country's oil industry facilities by forces targeting Azerbaijan's strategic partners remains quite high.

A presidential decree dated 23 August 2007 "On approving the national security concept of the Azerbaijan Republic" states that as the revenue brought in by the development and transit of energy is the foundation of our economy, all attempts to disable this industrial sector, be it by political means or by causing physical damage to the infrastructure, must be considered threats to national security.

 The security of energy projects was also seen as the main responsibility of the National Security Ministry by national leader Heydar Aliyev, who predicted the present-day problems of the energy sector and outlined the necessary response long ago. "Azerbaijan is expanding its economic capabilities. The country is opening its doors to foreign investors. Azerbaijan has signed agreements on the development of its oil industry and is implementing them. Pipelines are under construction. Measures are being taken to transport Azerbaijani oil to world markets. This, however, is of serious concerns to Azerbaijan's enemies, and the possibility of provocative actions aimed at undermining our successes cannot be ruled out. Thus the security of our economic projects is one of the key objectives of the National Security Ministry," H. Aliyev said. 

Governed by this instruction, the National Security Ministry is giving special attention to the security of the fuel and energy sector as one of its priorities. The aims and objectives of national security bodies in ensuring the country's energy security are reflected in the decree of the national leader "On establishing a commission on the security of export oil and gas pipelines" dated 15 April 2002, the resolution "On approving an action plan for the security of export oil and gas pipelines" dated 28 August 2002, the Law "On national security", a number of special resolutions of the Cabinet of Ministers of the Azerbaijan Republic and other regulatory documents. 

According to National Security Minister Lt-Gen Eldar Mahmudov, the fight against threats to trans-national energy projects is one of the main activity directions of the ministry today. "It is quite natural that such major international projects as the construction of export pipelines, the establishment of the TRACECA transport corridor etc. are a focus of attention for ill-wishers and competition. In my view, there is nothing extraordinary in acknowledging the threat of acts of sabotage against our strategic infrastructure facilities, because the recognition of a problem is the first step towards its solution," the minister said in one of his speeches.

The ministry is paying special attention to identifying and preventing threats to the security of energy projects, determining and systematizing the risks, probable developments and predicting operational conditions, and taking pre-emptive measures. At the same time, considering the trans-national nature of Azerbaijan's fuel and energy sector projects, close relations of partnership have been established with the secret services of neighbouring countries. 

 The security system of the fuel and energy sector must be based on comprehensive and multilevel approaches. Therefore, it is necessary to develop security measures at all levels of the energy network.

When developing pre-emptive measures to thwart acts of terror against infrastructure facilities, it is necessary first of all to consider the size of a possible threat, the environmental, social and economic damage possible. Considering all this, programmed measures must be taken at energy facilities in order to lower the risk of breakdowns and to improve the reliability of infrastructure in the face of terrorist threats.

 It should be emphasized that the possibility of acts of terror and other threats was envisaged in Azerbaijan long before initiators and contractors began the implementation of energy projects. Jointly with the companies implementing these projects, the Azerbaijani government is taking all measures necessary to ensure the security of the oil and gas infrastructure. The government commission on the security of export oil and gas pipelines is dealing with the preparation of a regulatory framework and practical measures. The key objectives of the National Security Ministry in this complex process is to ensure the timely identification and prevention of threats, to warn the relevant bodies of the existence of such threats and to ensure the operational security of the oil and gas infrastructure.

Possible threats to the security of the energy sector infrastructure may to some extent alter the environmental and social balance. From this standpoint, one of the focuses of anti-terror energy security measures is the upgrading of resources for the evaluation and prevention of the effects of terrorist acts on society, the state and the environment.

In conditions of a growing demand for gas and limited supply (and transportation) to Europe, the security of production and transportation infrastructure of the Shah Deniz project is of crucial importance.

The necessary regulatory framework has been developed in Azerbaijan to ensure the security of energy projects. This framework sets out specific roles and responsibilities for the National Security Ministry. The ministry focuses on all factors, including potential sources of terrorist and provocative threats, man-made disasters, environmental problems and impacts, emergency preparations, even trends in the world's oil markets, the circles, organizations and persons antagonistic to the implementation of our projects and capable of causing artificial problems, and other factors that could possibly affect the security of oil strategy.

In short, the National Security Ministry of Azerbaijan continues to work to ensure the security of trans-national energy and transport projects.