Speech of the Azerbaijan President Heydar Aliyev on the formal reception in Gulustan Palace, organized on the 10th anniversary of the establishment of open joint-stock company "Lukoil" - October 12, 2001


Dear Mr. Ambassador!

Dear Vahid Alekperov!

Dear guests!

Dear ladies and gentlemen!

I congratulate you and 120 thousandth collective of "Lukoil" company, belonging to the Russian Federation in connection with 10th anniversary of the establishment of the company, I wish you and to the company further successes.

The company "Lukoil" is at the same age with a state independence of Azerbaijan. On these days we celebrate, mark the state independence of Azerbaijan. This is the greatest holiday for us. On these days the 10th anniversary of the Russian Federation company "Lukoil" is marked. I am very glad that "Lukoil" company after holding its 10th anniversary, naturally, in the capital of Russia in Moscow, decided to mark this together with us in Azerbaijan, in Baku. I am thankful to you. It is clear, there is a foundation for it. But it might be appreciated indecently. Really "Lukoil" company became famous all over the word since the first oil contract "Contract of a century" was signed in Azerbaijan.

Those years were very hard and difficult. As a result of military aggression of Armenia, Azerbaijan already from 1988-1989 years rose for the defense of their lands, there was war, blood was shed. However along with this, the independent Azerbaijan state thinking about the future of Azerbaijan, in 1993 signed the contract with the companies of the world, having the large modern technique, technology that is able to invest the capital for the joint exploitation of the rich natural resources of Azerbaijan-oil and gas deposits. I repeat again, it was 1993, there was war, blood was shed and the people in Azerbaijan lived in difficult situation.

In 1993 Azerbaijan was standing before the threat of partition. The civil war had begun. We prevented it. That is to say our first duty consisted in it. However we believed that we would necessarily prevent it and in the further we should develop the economy of Azerbaijan. And therefore, we were engaged in this work.

I remember, how tense struggle went on preparation of this contract in 1993. Some adventurers wanted to use this contract in their interests. And in other countries there were people, who opposed against this contract, impeded to the signing. However we managed with all these difficulties, chose the right way. At the end of 1993- the beginning of 1994 a big group of experts of the State Oil Company of Azerbaijan at first in Azerbaijan, then in Istanbul, later in Houston engaged in preparation of this contract. At last the contract was ready.

At that time we did not have an experience in this sphere, this work was new for us. However we had a great experience in the field of petroleum industry. We knew the value of our riches, took necessary measures for the effective utilization of our riches. These conversations, disputes had taken much time. Each company defended its interests. We understood, that if such great contract is preparing, so the interests of each party should be provided. But at the same time, first of all the interests of Azerbaijan should be provided. Because Azerbaijan is the owner of these reaches, the owner of these energy resources. If we want to use our natural resources belonging to our people, state, together with other companies, it means that first of all the interests of Azerbaijan should be provided.

Our people saved up experience in this sphere. I remember, last time our group during 45 days, day and night worked in the city Houston of the United States of American, in order to prepare this contract and prepared it. In September of 1994 here, in this majestic palace "Gulustan"- this palace has historical value, we have signed this contract.

At that time the companies of the United States of America has shown interest to our contract. There were also the companies of some European countries. However, at the same time and there was interest to this contract in Russia too. But the first was the company "Lukoil". From the first days "Lukoil" took part in our first workings and signed a contract. Thus it was stood up in the same line with famous richest oil companies of the world.

The creation of Lukoil Company was the result of collapse of the Soviet Union. And the declaration of state independence of Azerbaijan and other union republics of the Soviet Union also has been connected with the collapse of USSR. As a nation, as a people and as a republic, naturally, we lived with a dream of independence and after the collapse of USSR, at once proclaimed it.

But one matter, that the people, state proclaim independence and want to live independently. And another matter, when the former system that is to say the socialist, economic system suddenly collapses and appears the company which heads for the new market economy. And this company was "Lukoil" the unique company. In Russia such companies were established after it. However "Lukoil" is the one goes ahead. "Lukoil" has opened to all other economic structures of Russia a way of transition to the market economy and the work on the basis of new economic principles. The president of the company Vahid Alekperov, first of all put forward the initiative of the creation of "Lukoil".

Another factor, which has allowed to "Lukoil" to rise in numbers of the world companies is the acceptance of "Lukoil " by Azerbaijan on preparation of the first oil contract. Because we understand that the contracts should be concluded with absolutely reliable companies, with such, which have means, can work in one rate with other companies. "Lukoil" was established exactly in such time, took on the path. Now Vahid Alekperov has said some figures about the present condition of "Lukoil". Though it was formed ten years ago according to Vahid, its basic development began 7 years ago after the signing of our contract. For this time it has considerably developed and extracted 80 million of oil. Here works 120 thousand men and naturally they have got work place in new economic system, at the same time highly provided people. The company "Lukoil" plays a great role in transition of Russia to the market economy.

Together with us "Lukoil" began the work in Azerbaijan, and began very successfully. "Lukoil" deposited to Azerbaijan about 500 millions of dollars of investment until now. If I am not mistaken, it has deposited investments at the rate 242 millions of dollars in our contract. Now it receives profit from it. From the deposited investments it has got 87 percent. You see 87 percent has already been received. Thus, "Lukoil" goes ahead and plays especial part in advancement of economic reforms in Russia. Now it is the well-known company in the world. "Lukoil" constructed petrol stations in the United States of America and has 1400 petrol stations there. Really, there are 15 of them in Azerbaijan. We can say a lot of figures. We have signed 21 contracts until now, where 32 oil companies took part from 14 countries. "Lukoil" has its part in 5 contracts out of 21 and participates in some contracts successfully.

Now on the volume of production and economic potential "Lukoil" takes up the fourth place among the companies of the world -"Exxson", "BP", "Chevron- Texaco" and then you. It is enough for you.

Vahid Alekperov: Mr. President, we must go further.

Heydar Aliyev: You know if you could make such great advance and take up the fourth place in the world so it is a great work. There is also the merit of Azerbaijan. I have explained in what this merit consists. But at the same time such great advance of "Lukoil" depends on business-like character, capacities and fidelity to the business of its president. And he is our countryman brought up by Azerbaijan- Vahid Alekperov.

Today presenting Vahid Alekperov high reward of Azerbaijan-the order of "Glory" I have marked great services of the Azerbaijani oil industry workers in the area of USSR. One of these oil industry workers, in other words, who reached the greatest heights is Vahid Alekperov. In 1974 he graduated from the Azerbaijan University of Oil and Chemistry. At that time you began to this work and we here in Azerbaijan leaded the constructive work. Then till 1979 worked here in "Caspian sea oil". Then he thought that he needed in larger field of action. And he left for Siberia in Tyumen.

Today I have told about it there and I will tell here again, not everybody has the occasion to be the first in the oil field in Azerbaijan. However Azerbaijan is a small republic, the population is small in comparison with others. But to grow up like this and to take the place in a society, in such large state as Russia and first of all in the USSR, of course is not an easy work.

At the same time, it does not fall from the sky. It depends on knowledge, native talent, abilities, and skills of the person and its fidelity to the person. And the roots of it are in Azerbaijan. It is necessary to look for in each such person the genetic features. And Vahid Alekperov`s genes are Azerbaijani. Look, how strong Azerbaijani genes are that conducts such great work and the company "Lukoil" makes its large contribution to economy of Russia. All these make us glad.

I feel huge pleasure of that we have devoted this day to "Lukoil". I have presented the high reward of Azerbaijan -the order of "Glory" then we opened together the monument of the great Russian poet and well-known figure of literature and culture of the world, Alexander Sergevich Pushkin erected in Azerbaijan. And now we came and continue our work in this remarkable hall. Today in Azerbaijan are the days of the 10th anniversary of the state independence of Azerbaijan and also the day of the company "Lukoil" which is dear for us.

Dear friends, I congratulate you once more. I congratulate "Lukoil". I congratulate the president of "Lukoil" Vahid Alekperov.

I congratulate the Russian Federation. I send from here my respect, esteem and sincere, friendly greetings of the President of the Russian Federation to dear Mr. Vladimir Putin. I want to propose this toast to "Lukoil", to the President of "Lukoil" Vahid Alekperov, to the Russian-Azerbaijan friendship and mutual cooperation for the friendship of the Russian and Azerbaijan nations.
 
Thank you.

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