The UK Government allocated some £1.3 billion worth of funds within a framework of implementation of Oil & Gas High Value Campaign (HVC) in Azerbaijan in 2016—2017.
The data was provided in the renewed “Overseas Business Risk – Azerbaijan” report of the Department for International Trade of the UK Government (DIT), which is aimed at providing the businesses willing to operate in Azerbaijan with necessary information.
The HVC programme identifies large scale overseas projects and aims to provide an intensive level of support to help UK businesses win contracts in and around these opportunities.
The report noted that oil and gas is by far the largest sector in Azerbaijan and therefore currently attracts the most DIT attention.
“Azerbaijan is the second most successful country where DIT HVC is implemented,” the report said.
Since October 2015, to support the HVC, DIT, together with the Ministry of Economy, BP and SOCAR, runs the UK/Azerbaijan Partnership Programme to promote and support collaboration between UK and Azerbaijani companies in the oil and gas sector.
To date, this Programme has been responsible for some 65 partnerships and is set to continue for the next 3 to 5 years.
The report touches on the current partnership between BP and the Government of Azerbaijan. On Sep. 14, 2017, BP, together with SOCAR, signed the extension of the Azeri Chirag Guneshli PSA Agreement until 2050. This agreement will lead to significant new business in the oil and gas sector in Azerbaijan for resident and new UK companies. Other major contracts are in the pipeline.
Outside of oil and gas, DIT is looking to diversify into other sectors including healthcare, mining, renewable energy, agri-business, tourism and education.
According to the State Customs Committee of Azerbaijan the trade turnover with the UK reached $281.1 million last year. Export of Azeri goods to the UK grossed to $41.2 million for the covered period.