The modern world is living through a period of serious economic turmoil, causing successive crises in the financial and social-economic sphere, the main areas of industry, and also in the fuel-energy complex, which is a particularly good barometer of the current situation and indicator of how the world economy will develop in the foreseeable future.

Given the important role of the energy sector in economic development across countries, regions and continents, it is necessary to take special measures to co-ordinate the energy policies of producer countries -- to establish diverse sources of hydrocarbons supply and stabilize world oil prices, enhancing global energy security. For this reason, regular and extraordinary meetings are held by of OPEC, heads of state, ministries, major oil and gas companies, and representatives of international energy agencies and financial organizations.

The European Union has tried to create mechanisms that promote mutually beneficial co-operation between energy producers and consumers -- on the basis of a market economy, characterized by transparency of transactions and freedom of competition.

Azerbaijan completely encourages these principles. Our country, which has developed upstream projects amounting to many billions of dollars in value, is prepared for its hydrocarbon resources to help guarantee and strengthen the energy security of European countries.

Most European countries are dependent on oil and gas imports. Imports of natural gas, in particular, are growing in importance – to serve the continent’s need for electricity, light and heat. In this context, it is obvious and beyond any doubt that the Caspian region, as a major producer of energy resources, will be one of the principal guarantors of energy security in western and eastern Europe.

We are convinced that greater co-operation with foreign investors in upstream projects, especially in the identification of new geological prospects in the Caspian region, will result in an increase in the region’s hydrocarbons potential and enhance its role as a supplier of energy resources to Europe.

We are interested in and understand the European Commission’s idea of establishing the Caspian Development Corporation, with the participation of all relevant energy and transportation companies, financial and business circles. Its objective is to concentrate all efforts on creating a reliable, efficient, transparent, market-based energy-transport system, supplying energy resources from Central Asia and the Caspian region to EU countries.

In our opinion, it is necessary to create favourable and attractive regimes with optimal prices and tariffs that suit not only investors, but also link up the various parts of the business chain – harmonizing relations between producers, transit parties and consumers.

I consider that it is necessary to decide points concerning relations with producer countries of natural gas and to determine the mutual obligations and responsibility of all parties on the supply and transportation of natural gas.