THE AGREEMENT OF THE CENTURY – AN INTERNATIONAL PROJECT THAT TURNS AZERBAIJAN INTO AN INTEGRAL PART OF THE GLOBAL WORLD ECONOMY

Abstract

The "Contract of the Century," signed on September 20, 1994, between the Republic of Azerbaijan and international oil companies, is one of the most significant steps taken in the early years of Azerbaijan's independence in terms of its economy. This agreement marked a crucial stage in the development of Azerbaijan's economy, as it enabled the country to bring its energy resources to the global market and played a key role in its economic growth. The contract is referred to as the "Contract of the Century" because of its substantial significance and the opportunities it created for Azerbaijan. With the signing of this document, Azerbaijan began to introduce its rich oil and gas reserves to the global market and attract international investors to the country. Azerbaijan's oil and gas reserves, particularly the large Azeri-Chirag-Gunashli (ACG) and Shah Deniz fields in the Caspian Sea, held the potential to occupy a significant place in the world oil market. However, developing these resources required advanced technology and substantial financial investments.
The agreement signed in 1994 was a critical step for Azerbaijan to collaborate with international oil companies and attract foreign investments for this purpose. The contract was related to the development of one of Azerbaijan's largest oil and gas projects, the Azeri-Chirag-Gunashli fields, and aimed to organize an international oil consortium for the project. Prominent global oil companies, including BP (British Petroleum), Amoco, Unocal, ExxonMobil, and Lukoil, participated in this consortium. With the signing of this contract, Azerbaijan began to introduce its rich energy resources to the global market, showcasing the energy reserves of the Caspian Sea to a broader international audience. The agreement also became a vital mechanism for accelerating Azerbaijan's economic development and attracting foreign capital.
The "Contract of the Century" was of great importance not only for the oil and gas sector but also for the development of the country's infrastructure, strengthening social services, applying technological innovations, and improving the skills of the local workforce. Moreover, the "Contract of the Century" was a fundamental step in strengthening Azerbaijan's position in the global energy market and increasing its significance in world politics. In addition to its oil and gas reserves, Azerbaijan began to play an important role in the global transit of energy carriers, thus becoming a new actor in the regional and international power balance.
The "Contract of the Century" was a document with both economic and geopolitical importance and gave a significant boost to the development of Azerbaijan's energy sector. The contract not only ensured Azerbaijan's energy independence but also provided the country with the opportunity to take a more active role in the world economy. This document remains a decisive stage in determining Azerbaijan's future energy development and foreign policy.