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ENERGY MARKET of AZERBAIJAN and ROLE of TURKEY
INTRODUCTION
Azerbaijan is of urgent significance to the world energy market. The demonstrated
and potential holds in the Azerbaijani part of the Caspian Sea are relied upon to
broaden, secure, and balance out world energy supplies. In any case, the area secured
energy assets in the Caspian locale posture extra difficulties to the vehicle of oil and
gas assets, especially to the European energy markets. Today, long-separate
transnational pipelines have developed progressively focal in endeavors to guarantee
energy security, in substantial part in light of the fact that they give a distinct option
for various helpless oceanic chokepoints. Thus, a widened comprehension of energy
security is basic not just to comprehend the new difficulties of Azerbaijan's foreign
arrangement additionally to adapt to any potential unsteadiness or geopolitical
competitions in the Caspian locale.
The late war between Russia and Georgia and the continuous NagornoKarabakh clash
between Azerbaijan and Armenia restored attention to geopolitical competitions, as
well as further reproduced the hubs of helplessness along the energy foundation and
cross-outskirt pipelines on the global energy market. Albeit there was no prompt
assault on, or danger to, the oil and gas pipelines bypassing Russia through the
Caucasus locale and coming to the Mediterranean in Turkey (the Baku-Tbilisi-
Ceyhan pipeline), Russia unmistakably communicated as a territorial power by not
permitting any adjustments in business as usual of the district or any individual
endeavors to tackle "solidified clashes" in the Caucasus.
Security dangers in the early years of Azerbaijan's freedom were discriminating in
setting the course of the nation's outside strategy, which has been to a great extent
driven by the monetary and political inclinations toward Azerbaijan's relations with
multinational oil organizations and using an oil-drove improvement process.
Azerbaijan's economy was in serious emergency after the breakdown of the focal
monetary arrangement of the previous Soviet Union. Foreign direct interest in the oil

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and gas areas was pivotal to support the nation's financial recuperation. As a major
aspect of the given way Soviet framework, Azerbaijan's monetary exercises had been
centered on the extraction and generation of crude materials. The experience of
Azerbaijan was to some degree not quite the same as those of other previously Soviet
republics because of its geographic area and social setting.
Azerbaijan hasmostly Muslim population, and is situated between capable neighbors,
Iran and Russia. Truth be told, a few territorial clashes, which occurred soon after
Azerbaijan's freedom, accentuated the significance of financial recuperation for its
national security. In this way, Azerbaijan needed to secure its political freedom and
financial improvement in the midst of complex geopolitics that mirrored the clashing
hobbies of distinctive partners, while concluding its oil and gas ventures, especially
for pipeline courses. These partners included multinational oil organizations,
Azerbaijan's neighbors (Iran, Russia, and Georgia), and Turkey and the United States.
In such complex energy geopolitics, an extraordinary associated relationship between
Turkey and Azerbaijan has developed. The drivers of this association have been
complex, however most altogether they have incorporated Turkey's quest for supply
security and its aspirations for a center point part from one viewpoint, and
Azerbaijan's mission to merge its autonomy through reconciliation into trans-Atlantic
structures on the other. Azerbaijan and Turkey so far had played crucial role in the
energy arrangements for each other.
This article examines the issues of energy mainly oil industry and natural gas, some
political and diplomatic aspects of Azerbaijan. Additionally, it examines role of
Turkey in these political and diplomatic issues based on previously written five
articles on behalf of the topic.

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OVERVIEW and GENERAL REVIEW of ENERGY MARKET in AZERBAIJAN
In this part of the article general information about Azerbaijan is given. The brief
explanation of economy, energy market, policy and diplomacy after independence
and current situation of Azerbaijan Republic explained. Additionally, review from
literature research about the subject presented.
Azerbaijan is situated in the South Caucasus district on the shore of Caspian Sea,
vergingIran, Georgia, Russia, Turkey and Armenia. It covers a zone of 86.6 thousand
square kilometers. As indicated by the International Monetary Fund, GDP per capita
on PPP was around $ 9500 in 2009. Its key area on the Caspian Sea gives
extraordinary potential with respect to oil and normal gas assets. Azerbaijan is an
essential oil exporter, copious with ripe horticulture terrains and a knowledgeable
work power. It goes about as a connection hallway in the middle of Europe and
Central Asia.
Azerbaijan gained its independence on October 18th
, 1991. After the independence
during the early years issues like war between Azerbaijan and Armenia, Russian ban
on transportation and halting use of 2 noteworthy oil pipelines (Baku-Supsa and
Baku-Novorossiysk) because of the war in Chechnya, authoritative shortcoming,
interruption in the lawful design, partition in the ethnic development prompted the
time of monetary emergency and difficulties. After autonomy, 1991-1994 was the
time where social, political, financial issues stepped in a period of crisis. At the time
of 1991-1994 exceedingly imperative macroeconomic variables of the country were
influenced. After the move into the free market economy in the early years of
autonomy some target reasons, for example, the war with Armenia, control of
NagornoKarabach and its encompassed locales, the financial impact of the war were
reflected in the full scale economy. In any case, this period reached an end with the
coming to force of HaydarAliyev, who was the 3rd
president of Azerbaijan Republic.
His coming to power was essential as far as solidness for financial choice making and
usage.

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With the end goal of generation Azeri-Chirag-Guneshli stores "The Contract of The
Century", namely the contract of Baku-Tbilisi-Ceyhan pipeline, was marked in 1994
after establishment of steadiness in political situation. For the generation of Shah
Deniz Deposit, which contained almost 1.5 trillion cubic meters of natural gas save an
agreement was signed in 1996. As per the choices on fare of energy assets oil fare was
begun with Baku-Tbilisi–Ceyhan pipeline in 2006 and normal gas fare started with
the development of Baku-Tbilisi-Erzurum pipeline in 2007. In this manner, on one
hand keeping in mind the end goal to apply the ventures foreign investors and
ventures were entered to the area, and after implementation and start of the projects,
the nations income increased from the trade of energy sources.
Since 1994, on account of the agreement went into with oil organizations, the nation
has respected an immense measure of foreign venture to the oil and gas division. The
GDP in this manner rose by 6% in 1997, 11% in 2000, 34.5 % in 2006, 25 % in 2007
and 10.8% in 2008. The administration began to execute monetary projects with
World Bank and IMF backing. Currently, nation has stable currency and cash control,
the rate of expansion is under the control, the budget monetary deficiency and the
outer debt proportions are low. GDP rate is fulfilling and relentlessly expanding.
After the creation and trade of Caspian stores following 2006, Azerbaijan has started
to take one of the first places on the world with the expanding rate of GDP. Financial
development in the 8-years period covering the years 2003-2011 is 80%. Between
1994-2011, an aggregate venture volume in the country is around 80 billion dollars.
Expanding of monetary policy has driven to the development of the volume of
domestic investment and expenditure. In the most recent 4 years spending plan uses
are expanded by 15 times. As a consequence of the changes with a specific end goal
to decrease the level of poverty and increase overall quality of residents in the
country, the level of poverty has dropped to 7 % by the start of 2011, which was 49 %
just in the year of 2003.
Since 1994, oil and natural gas contracts that were signed between Azerbaijan and
universal organizations and joint ventures, have permitted to bring cutting edge
advances to the nation and re-foundation of the base in the world energy segment. For
the trade of oil the principle pipeline is Baku-Tbilisi-Ceyhan, while for the trade of

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natural gas to the world market the principle pipeline is Baku-Tbilisi-Erzurum. Hence,
by remaking of the economy, advancement and joining with globalized world,
Azerbaijan, as a standout amongst the most essential column has come to
transmission lines permitting the trade of energy sources.
Azerbaijan is perceived as one of the most established oil makers on the planet. The
principal oil wells on the planet were bored in Baku in 1847. In 1910, Azerbaijan
turned into the most obvious oil maker on the planet with generation of 11.5 million
tons of oil. The most oil production of Azerbaijan was in 1941, which were 23.4
million tones till 2005 from the first date of production of oil.After the freedom,
remaking and entering the alteration, unsteady period of politics and economy
lessened the oil production. In any case, new steps and exercises as per the "The
Contract of The Century" expanded the oil production. By the initiation of first oil
production of Chiraq offshore deposit in November 1997, the petroleum development
and production expanded in 1998. Oil production was 15.3 million tons in 2003, 15.5
million tons in 2004, 22.2 million tons in 2005 and 32.3 million tons in 2006. With
the measure of oil production in 2006 Azerbaijan put behind the oil generation record
of 1941, which was 23.4 million tons. The measure of oil production was 41.7 million
tons in 2007. In 2009 the oil production came to its largest amount with 56 million
tons and in 2011 it was 46 million tons.In 2008, Azerbaijan had an expected 7 billion
barrels of unrefined petroleum and 1.37 trillion cubic meters of gas saves. The
primary oil deposits were found seaward in the Caspian Sea, especially the Azeri-
Chirag-Guneshli field that is evaluated to have represented more than 80 percent of
aggregate oil yield in Azerbaijan in 2008. The joint advancement of these three
greatest oil stores, ¨Azeri ¨, ¨Chirag¨ and ¨Guneshli¨ started on September 20 1994,
when the "The Contract of the Century¨ was signed with significant oil organizations
speaking to eight nations. This agreement is considered to have been of remarkable
significance in the assurance and improvement of Azerbaijan.
The generation of natural gas was begun in 1902. During the Soviet Union period the
gas production was behind and followed the oil business. From the earliest starting
point of regular gas generation the most extreme measure of creation was 17 billion
cubic meters in 1981. During 1980`s yearly generation of natural gas was 14 billion

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cubic meters. Since 1990 the generation diminished to the level of production of
1960`s which was at around 5-6 billion cubic meters. Till 2007 the created natural gas
could just meet 40% of requirements for the nation.As a consequence of decay of gas
generation up to 5-6 billion cubic meters, subsequent to 1990 Azerbaijan was obliged
to import Natural gas from Turkmenistan and Iran. In 2000 an agreement was
madewith Russia on import of natural gas. The import of natural gas from Russia
proceeded till the end of 2006. The interest met by local creation of natural gas in
Azerbaijan in 2007 after the exploration of Shah-Deniz deposits. Looked at with the
earlier years the natural gas creation builds 81% and was 11 billion cubic meters in
2007. The generation volume expanded up to 15 billion cubic meters by increasing
the generation in 2008.As indicated by the counts, in 2015 pretty nearly 30 billion
cubic meters natural gas will be taken from the Shah-Deniz store in a year. Since
2007 the Baku-Tbilisi-Erzurum gas pipeline task has been begun with the trade of
natural gas.
After the start of oil production and its trade in Azeri-Chirag-Guneshli deposits with
addition of natural gas generation and its trade in Shah Deniz deposits, Azerbaijan
caught the chance of financial development, rebuilding its economy and joining to the
world economy and energy market. Currently it could be said that, Azerbaijan is a
contender of Russia, North Africa and other natural gas producers on the trade of gas
to the European nations and Turkey. Significance of natural gas to address energy
issues of the world is expanding step by step and it takes one of the real places in
power era. By 2020, it is anticipated that the measure of natural gas used to get power
era is relied upon to achieve 33 % of aggregate regular gas utilization. The natural gas
is favored because of less destructive impacts to the earth. Turkey will assume a
scaffold part in the transportation of regular gas from focal Asian nations including
Azerbaijan to the European markets. Aggregate oil stores of Caspian Sea are around
200-223 billion barrels. Just 17-49 billion barrels of aggregate stores have been found
and currently being exploited. The rest of barrels are inexact.
Azerbaijan oil reached the port of Ceyhan on May 28, 2006. Baku-Tbilisi-Ceyhan
(BTC) pipeline considered as unrealistic project that can't be done. Be that as it may,
the task began with Istanbul Memorandum of Agreement and was formally stated for

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transfer of oil on July13, 2006. The trade toward the western markets begun on June
2, 2006. The most discriminating course in the development of east-west corridor was
figured out. It handicapped Russia and straits, but yet expanded Turkey's geopolitical
and geostrategic significance and gave political solidness in the Caucasus. 9.4 million
tons of oil was sent out in 2006 and in 2007 total of 28 million tons of oil was sent out
by BTC pipeline. In 2009 day by day trade volume came to 8 million barrel, at the
end of the day having 50 million tons. Later on, next years in spite of the fact that
decreasing is being observed, this volume was pretty nearly 40-50 million tones.
Beginning from 2011, oil trade started to diminish. With full limit of transportation
BTC pipeline transmitted around 1.3% of the world oil. Together with the increment
of oil trades the inside ventures are likewise raising. The aggregate volume of the
ventures concurred with more than 30 contracts worth of 80 billion dollars.
The development of Baku-Tbilisi-Erzurum (BTE) pipeline for the transportation of
natural gas from Shah Deniz store began in 2004. Completionof the construction in
the last quarter of 2005 and starting the exportation of gas in winter of 2006 was
arranged. For filling the BTE pipeline in the first stage the natural gas extracted from
Azerbaijan’s Shah Deniz deposit was used and natural gas was exported in 2007 using
this pipeline. Georgian part of the Baku-Tbilisi-Erzurum pipeline venture begun in
2006. For some reasons, because of the postponed construction in Turkey gas of Shah
Deniz store come to Erzurum on July 3, 2007. Hence, Turkey has begun to supply
natural gas transferred from Azerbaijan by utilizing the pipeline much less expensive
than Russia. The length of this pipeline is 442, 248 and 280 kilometers in Azerbaijan,
Georgia and Turkey respectively.This pipeline has the ability to convey 30 billion
cubic meters of gas every year. Also, it has the same landscape with BTC oil pipeline.
Utilizing pressure or pump stations could expand the beginning limit of this pipeline
whish is estimated as 2.3 billion dollars. Under the Stage - 1 venture the store of
Shah-Deniz deposits is computed 178 billion cubic meters. It is planned to build-up
the production amount from 2011. BTE will convey 8 billion cubic meters of
Azerbaijanis natural gas to Turkey and 800 million cubic meters to Georgia.
Substantial part of the natural gas will be sent to European countries by means of
Turkey and Greece. In the natural gas and oil industry more or less 80 thousand

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individuals are working in Azerbaijan. This figure will be higher if there should be an
occurrence of considering the workers of sub-areas.
The State Oil Company of the Azerbaijan Republic (SOCAR) is a state possessed oil
and gas organization what's more, is in charge of all parts of seaward and coastal
investigation of oil and gas fields in the country, the pipeline framework, oil and gas
imports and trades, handling, refining and offer of oil and gas items. SOCAR was
established on 13th
September 1992 after the merger of two state oil organizations,
Azerneft and Azneftkimiya.Since 1994, SOCAR has marked a sum of 29 Production
Sharing Agreements, counting contracts to investigate the Azeri-Chirag-Guneshli
fields. The latest contract in 2009 imagines investigating the Bahar and Gum Deniz
seaward oil fields. Because of these agreements, the Azerbaijani government will
harvest around 80% of the aggregate benefits from a blend of royalties and SOCAR's
share. The rest 20% of benefits will be isolated among the Azerbaijan International
Operating Company (AIOC): BP (administrator, 34.1%), Chevron (10.2%), SOCAR
(10%), INPEX (10%), Statoil (8.6%), ExxonMobil (8%), TPAO (6.8%), Devon
(5.6%), ITOCHU (3.9%) and Hess (2.7%). BP is the biggest outside financial
specialist among them and it has been a solitary AIOC administrator since June 1997.
Azerbaijan got 75% of trade incomes from oil and oil items in 1997. But in 1998,
Azerbaijan was subjected to the huge loss of pay because of the low oil prices.
Decrease of oil-determined expenses expanded the financial backing deficiency. This
advancement occurred in the foreign exchange parity that connected with the
increment of the country's oil trade as an aftereffect of oil production and trade stage
inside of the system of universal contracts in connection to the Caspian
energysources. Expanding foreign exchange specifically related with the agreement
that was made over petrol reservation and utilization of that agreement. The share of
oil and oil items in export was 64.8% in 1998, 75.9 % in 1999, 84 % in 2000, 91.23 %
in 2001, 81.23% in 2002 and 82% in 2004. This increment was mostly because of the
trade of unrefined oil.On one hand, the unit cost of unrefined petroleum is expanded,
on the other export sum is expanded. The share of the oil incomes in trade kept on
ascending in 2005. In 2011 this proportion expanded more than 90%with the start of
trade from BTC towards the end of 2006. According the calculations of State Oil

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Company of Azerbaijan Republic oil incomes will be 180 billion dollars by 2024 in
the event of per barrel cost of oil is 50 dollars. Since the primary fares of Azerbaijan
are oil and natural gas, Azerbaijan's economy has gotten to be reliant on energy costs.
The trades of petroleum and petroleum items, and natural gas are bit by bit expanded
in Azerbaijan.What's more, it is an indication of imperative issue for Azerbaijan
economy as reliance one and only division. Azerbaijan's trade of unrefined petroleum
and petroleum items holds 80-85% of the total export share. Since 2008, this share
expanded to more than 90%.
State Oil Fund (SOF) of the Republic of Azerbaijan was established by the choice of
President HaydarAliyev in February 29, 1999. Oil incomes from energy sources are
gathered in the state oil reserve (SOF). To guarantee a reasonable dissemination of oil
and gas incomes between eras is the first priority of the Fund's reasoning. The
primary goal of the Fund is to guarantee foreign trade and other money related assets
that were picked up from the activities of SOF and usage of the concessions to
investigation and trade of energy sources and oversee them in the most practical way.
Moreover, to protect the country's economy from the negative influence of expanding
foreign trade incomes, to keep up macroeconomic steadiness and to adjust financial
solidness are in the principal targets of the trust.Administration rules of the trust are
arranged together with IMF specialists. Azerbaijani government and the Worldwide
Monetary Fund (IMF) are meeting from time to time to examine more effective usage
of oil incomes. Begun its exercises from January of 2001, SOF gives data on wage
and consumption in per quarter. From 2001 to 2011 absolutely 70 billion manats
(manat is national currency of Azerbaijan Republic) were exchanged to the Fund. 411
million manats of these incomes are from the administration of fund assets. Until the
start of 2012 SOF has allotted 906 million manats keeping in mind the end goal to
fund the activities identified with Karabach, 27 billion manats for the exchanges to
nation's budget,779 million manats for the development of water pipeline from Oguz-
Qebele locale to Baku, around 716 million manats for Reconstruction of the Samur-
Absheron watering system framework venture, around 227 million manats to back the
Baku-Tbilisi-Kars railroad venture, 40 million manatsfor State Program on education
of Azerbaijani youth in foreign countries in 2007-2015 , around 20 million manats for
use for the administration of the State Oil Fund. In the first place of 2012aggregate

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stores amassed in the State Oil Fund is 40 billion dollars. The fund assets are put in
the created nations, budgetary instincts, important papers having a place with the
banks, stores and other currency market instruments. As indicated by the
computations of nearby and outside specialists and additionally State Oil Fund
specialists, after 2025 oil incomes in Azerbaijan will diminish essentially. Also, this
builds the danger of Dutch Disease. The Dutch Disease remains for the circumstance
in the deindustrialization of a country's economy by revelation of a characteristic asset
raises the estimation of that country's money, making made merchandise less focused
with different countries, expanding imports and diminishing exports.These counts
make Azerbaijan to take genuine measures. Azerbaijan government has concentrated
on the system to spare economy from being subject to the oil area since 2005. In the
technique acknowledged for long haul usage of oil income, uncommon consideration
has been given to provincial advancement. Then again, keeping in mind the end goal
to upgrade the nature of human capital allotment of assets to education and research
spending is arranged.
From above pictured situation it is obvious that Azerbaijan currently with all it
possess depends on one and only sector which is oil and natural gas sector. This
sector is important for nations prosperity since the revenues made are almost all
coming from that sector. Moreover, the global energy market and the diplomacies
held among the major players of the globe and energy demand a bit forces Azerbaijan
to take an active role in that market by using its resources and its geographically
strategic location near the deposits and on the corridor between Asia and Europe. At
this point Turkey steps front. Since without Turkey transportation to world market of
resources for production and utilization of energy for Azerbaijan it would be harder to
make them project happen. Turkey, because of its geographical location and the
historical roots between two nations made it easy to happen. Additionally, Turkey
itself is one of the major utilizer of Azerbaijan’s oil and natural gas by means of crude
product or refined products. These make Turkey an important ally and customer. Next
section of the paper related to the relation between Turkey and Azerbaijan based on
energy market and diplomacy of states. Here review of previously written five articles
outlining their major points would be given and brieflyanalyzed.

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ROLE of TURKEY
Turkey has a crucial role in the Energy Market of Europe and even may be assumed
globe itself. Since it is located right at the intersection point of Europe and Asia, at the
shore of Black Sea, Mediterranean Sea and Aegean Sea. This geographically strategic
location made Turkey and important player in the Energy Sector. Moreover, Turkey
itself is in need of energy, meaning it is one of the major consumers of the area,
because of lack of sufficient amount of natural resources and lack of utilization of
existing ones. All in all Turkey no doubt plays an important role in Energy Market.
Based on the case several articles were written related to the subject. Even some more
articles, for sure, are being prepared, explaining the aspect from different points of
view. I selected five from articles to reviewed and analyzed, explaining the relations
between Azerbaijan and Turkey and their integration in Energy Market.
Article 1:Restoring Brotherly bonds, Turkish-Azerbaijani Energy Relations, by
Suhnaz Yilmaz and M. Tahir Kilavuz, PONARS Eurasia Policy Memo No.
240, 2012.
Review:
Turkey is an energy subordinate country, importing $54 billion value of energy in
2011. It imports 58 percent of its characteristic gas and 12 percent of its unrefined
petroleum (2011) from Russia. It likewise imports 19 percent of its gas and 51 percent
of its oil from Iran. In examination, Azerbaijan's share of Turkish natural gas imports
is moderately low, around 10 percent of Turkey's aggregate gas imports, and its share
of Turkish oil imports is minor, under 5 percent. Yet future vulnerabilities about
potential pipeline ventures, and additionally the effect of the Arab Spring, can make
changes in supplies bringing about a higher share for Azerbaijani gas.
Political issues are additionally imperative in molding Turkish-Azerbaijani
energyrelations. The marking of an April 2009 agreement among Turkey and
Armenia, which characterized a temporary guide for normalizing relations, made

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inconvenience in Azerbaijan. Only three days after the arrangement, thepresident of
SOCAR, requested another arrangement on energy costs, as the contract that had
characterized regular gas costs had terminated in 2008. Since at that point, Turkey had
been importing natural gas at the old costs. The way that Azerbaijan played the gas
value card directly after the Turkish-Armenian rapprochement had started proposed
that advancements in international relations still emphatically influenced energy
approach.
In 2010, the value debate between Azerbaijan and Turkey was at long last settled
through concurrence on the Shah Deniz-II venture, a noteworthy development of
Azerbaijani gas generation and westbound export. Amid the transactions, the
gatherings additionally talked about costs on Shah Deniz-I gas. As per the
understanding marked in June 2010, Turkey consented to pay remuneration to
Azerbaijan for importing gas at pre-2008 costs. At last, the gatherings concurred on
another valuing arrangement. As is standard with Turkish-Azerbaijani gas bargains,
the new net cost stayed secret, yet parties affirmed that costs would now vary as
indicated by economic situations. Turkey would apparently hold a rebate in its import
cost for Azerbaijani gas, in respect to the value it pays for Russian imports.
Turkey and Azerbaijan marked a reminder of comprehension on another Trans-
Anatolian Pipeline venture (TANAP) in the most recent week of 2011. As indicated
by the agreement, around 16 billion cubic meters (bcm) of natural gas are to be
transported yearly, with Turkey utilizing 6 bcm and Europe accepting the remaining
10 bcm. TANAP's ability is relied upon to reach 31 billion cubic meters in fifteen
years. In June 2012, Erdoğan what's more, Azerbaijani President IlhamAliyev inked
the arrangement to dispatch TANAP with the first gas to stream in 2018.
The arrangement is additionally critical for Turkey. A gas supply of 6 bcm a year
from Azerbaijan will do much to differentiate Turkish energy sources. Furthermore,
Azerbaijani SOCAR and Turkish TURCAS have consented to construct a refinery in
Izmir, which can refine right around 10 million tons of oil. This will help understand
the Turkish objective of turning into an energy center.

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Criticism:
In energy politics relation between regional powers are of crucial concern as of
relations between global powers. One of these relations as was stated in the reviewed
article is the relation between Azerbaijan and Turkey. The complete relation history
between two after the independence of Azerbaijan Republic always had its ups and
downs. One of the latest issues was Armenian and Turkish relation that actuated the
price crisis of the natural gas between Azerbaijan and Turkey. Yet, head rulers of two
countries wisely solved it. The solution was crucial for both sides since Azerbaijan
was the exporter of energy resource and Turkey was consumer. Both sides had their
needs to be covered and relying upon that issue was solved.
In my opinion, this crisis and mainly its solution strengthened the relationships and
made new deals happen related energy market. Nabucco pipeline and TANAP are of
essential ones. Both sides knew that they were competing with Russia, one of the
majors of global energy market. So to be consistent the deals should be carried out in
a mutual agreement and benefit. Several already done and currently running pipelines
made it easier to happen.
On the other hand, whatever it would be done to bypass Russia it will be difficult.
Russia currently is one of the major natural gas suppliers of Europe and it has well-
integrated and modern technology on energy. Additionally, Russia has high influence
on the regional relations either with Iran and with Armenia making Azerbaijan to
think twice for NagornoKarabach issue and Turkey at the same time whenever
possible declaring support for Azerbaijan on the behalf of the issue. Considering that
Turkey is one of the main customers and indeed it needs Russian natural gas at some
point it forces Turkey to be good with Moscow. It is well seen from the latest
agreement on nuclear power station deal between two. So, Turkey and Azerbaijan
should strengthen their relationship in more progressive way and keeping balance
with Russia.

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Article 2:The Turkey-Azerbaijan Energy Partnership in the Context of Southern
Corridor, by SabanKardas, IstitutoAffariInternazionale, 2014
Review:
As a recently autonomous nation, Azerbaijan was trying to combine its monetary and
political autonomy. It in this way attempted to add to a multi-vector foreign strategy
and to assemble solid ties with the West through Turkey by profiting by its energy
assets. Turkey picked up a stake, though constrained, in the generation sharing
understanding for Azerbaijani oil saves, which was a noteworthy defining moment
not just for Azerbaijan's star Western introduction, additionally for the
internationalization of Turkey's energy organizations. Turkey and Azerbaijan chipped
in intently on the acknowledgment of the Baku-Tbilisi-Ceyhan (BTC) rough pipeline,
which framed the foundation of the US anticipate for an East-West energy
passageway.
The geopolitical hugeness of the BTC venture, which got to be operational in 2006,
was broadly recognized, however its financial plausibility was frequently questioned.
As a result, despite the fact that it has turned out to be a fundamental segment of
Turkey's desire to transform Ceyhan into a noteworthy energy terminal, it is a long
way from being used at its maximum capacity. Having brought about a few expenses
from the operation of BTC, Turkey just as of late determined the subsequent debate
with Azerbaijan. In addition, the genuine commitment of BTC to Turkey's center
point part still stays contingent on the fruition of other proposed activities conveying
extra volumes of Middle Eastern and Caspian bowl rough to Ceyhan, for example, the
Samsun-Ceyhan pipeline or extra pipelines from Iraq.
Turkey-Azerbaijan energy relations concentrated essentially on natural gas projects.
After it began to adapt oil holds, Baku, supported by the Shah Deniz consortium,
begun to add to its submerged gas saves, which are evaluated to be considerable.
Given its intense requirement for a business sector and an export course, Turkey was
the normal accomplice for Azerbaijan. Here, once more, Azerbaijan's yearning to

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utilizeits energy assets to unite its professional Western introduction was an
unequivocal component. All through the 2000s, a rival developed between Russian
and EU-upheld ventures that were expected to grow new pipelines as a component of
the common gas leg of the East-West energy passageway. Moscow attempted to
constrain Baku, through a mix of carrots and sticks; to ruin Baku’s aspirations for
promoting its gas specifically to European markets. Azerbaijan conferred just 1 bcm
of its gas to Gazprom, notwithstanding Russian weight. Azerbaijan's imperviousness
to Russian offers and its unequivocal inclination for Turkey and the activities destined
for European markets were clear evidences of the degree to which it esteemed mix
into the Western world.
The breakthrough came with Turkey and Azerbaijan's declaration of the Trans-
Anatolian Pipeline Project (TANAP) in 2011. TANAP goes for transporting gas from
the Caspian bowl to European markets through a devoted pipeline, instead of by
utilizing Turkey's current pipeline system. While the throughput of BTE alone won't
have the capacity to suit extra volumes from Shah Deniz II, TANAP is not grew
singularly for Shah Deniz II and is intended to convey gas from different suppliers
later on. Consequently, TANAP won't be expanded from BTE, however will begin
from the Georgia-Turkey fringe and work as a standalone pipeline.
Moreover, with its scalable nature, TANAP keeps open the likelihood of an extension
of limit, which looks good for alternate ventures sought after by Turkey. Later on,
extra volumes of gas from Turkmenistan, Iran or Northern Iraq could be transported
through the same network, with the expansion of TANAP's ability by method for
extra compressor stations. There has likewise been hypothesis about the likelihood of
joining East Mediterranean gas to the same framework. Azerbaijani authorities have
additionally left open the likelihood of conveying outsiders' gas through TANAP.
Case in point, amid a late outing to Baghdad, Azerbaijani Foreign
MinisterElmarMammadyarov offered his Iraqi partners the likelihood of conveying
their gas to Europe. At present these are just wild thoughts, and the acknowledgment
of any of them will as a matter of first importance rely on upon the determination of
mind boggling political debate, also the issues of specialized and business
attainability. In addition, despite everything it stays to be seen to what degree

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Azerbaijan will be willing to permit rivalry from different suppliers, particularly
Turkmen gas. Turkey, as far as it matters for its, has been endeavoring to realize these
options, including the TCP. On the other hand, the settlement of the political debate
that are slowing down these proposition is past Turkey's sole control, and their joint
activities towards third gatherings, for example, the Turkey-Azerbaijan-Turkmenistan
trilateral dialog, will require to be reinforced later on.
Regardless, TANAP's business expansion methodology has clearly diminished
Russian concerns, permitting Turkey and Azerbaijan to continue with their energy
organization without threatening Russia. With this new comprehension, Azerbaijan
has figured out how to trade its gas, and additionally its oil, into Western markets all
alone terms. Nonetheless, the aggressive motion with Russia may reemerge if Turkey
or the European performing artists press for the consideration of Turkmen gas by
refocusing on TCP or different ventures. In such a situation, closer key dialog and
strategy coordination between the Western performing artists and the Turkey-
Azerbaijan collaboration will be a pressing need.
Criticism:
I personally think and it also mentioned in the article that, the eventual fate of the
European thought of the Southern Corridor depends vigorously on the helpful
organization between Turkey and Azerbaijan. Besides, the advancement of the two
nations' energy surroundings since the collapse of Soviet Union has rendered them
essential to each other as far as energy arrangements. Hence, an associated
relationship between Turkey and Azerbaijan has risen, parallel to the rising
significance of the Caspian basin in European energysecurity examinations.
Another opinion of mine related to the mentioned truth that, without its organization
with Turkey, it would not have been feasible for Azerbaijan even to think about, for
example, being one of the driving parts in contemporary energy geopolitics. Pointing
it out, without Turkey's import responsibility, the advancement of Shah Deniz II and I
would have been difficult to envision. So also, different options for Turkey-bound
pipeline activities, for example, offering to Russia or sending out to Europe through

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another streams, are either too exorbitant or have in the past been geopolitically high-
hazard bets for Azerbaijan. BTC, BTE furthermore, TANAP will keep on being
energy fixings in Baku's star Western outside strategy introduction.
Then again, Azerbaijan is basic to Turkey's energy security and potential part as a
transportation center. The present and anticipated imports from Shah Deniz have
given Turkey a noteworthy support, and helped lighten its unfortunate reliance on
Russia and Iran. Likewise, all BTC, BTE and TANAP are significant empowering
agents of Ankara's aspirations to state its part as a noteworthy center point in the
district. All the more fundamentally, in perspective of the present proprietorship
structure of TANAP and the last venture choice for Shah Deniz II, Turkey will be no
more a simple buyer or transportationdistrict, additionally a shareholder, and thus
joint proprietor, of this tremendous undertaking, which is the foundation of the
Southern Corridor. This new part is prone to give Ankara more prominent influence
in local energy governmental issues and the Southern Corridor in general.
Article 3:Turkish-Azerbaijani Energy Relations, by Bulent ARAS, Global Turkey in
Europe, Istanbul Policy Center, 2014
Review:
On the off chance that we see the development of Turkish-Azerbaijani relations
regarding sequence, we can call the present time 'the energy relations period'. This
period was gone before by Azerbaijan's post-freedom political history, when it strived
to reinforce its inner solidness and parity its relations with Russia, Turkey and the
West. Taking period after IlhamAliyev's election as President for the third time
toward the end of 2013, it is clear that energy is the primary driver of Azerbaijan's
foreign approach. Turkey, thus, is seeking after a dynamic approach,went for turning
into an energy center point, as a piece of a dynamic and multidimensional foreign
strategy.
In the article following issues are highlighted for Azerbaijan’s diplomacy and foreign
policy development after independence: “Firstly, Azerbaijan’s priority is to position

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the country as an important actor both regionally and internationally. The
Aliyevgovernment has recoded its relations in the region and adopted a policy of
balance in its relations with regional powers that is aimed at pursuing good relations
with its neighbors. Secondly, the country has improved its relations with Western
institutions such as the Council of Europe and promoted its credibility in the eyes of
these international institutions. Thirdly, Azerbaijan has diversified its foreign policy
and trade relations, starting with Asian countries. Finally, the Aliyev government has
pursued a policy to utilize the leverage of oil and natural gas projects and pipeline
policies in order to evolve to an influential player in regional politics and in energy
security in the East-West corridor.”
Turkey's approach for the Caucasus ought to be broke down inside of the setting of
the local approach that developed in the 2000s. In accordance with this new foreign
approach, the Caucasus is a potential locale of impact and opportunity. Turkey's
strategy towards the Caucasus plans to create political and financial relations with the
nations in the district and to help them create components of interior strength and
success and in addition manufacture territorial peace and security.
Close connections between Azerbaijan and Turkey and their participation in the field
of energy have made Azerbaijan the most imperative provincial nation for Turkey. In
the previous years, Turkish and Azeri joint efforts have been created between NGOs,
colleges and examination institutes. It was chosen amid Prime Minister Erdogan's
excursion to Azerbaijan on May 17th
, 2010 that the High Level Strategic Cooperation
Council (HLSCC) would be established. At time of conducted trips, both sides
commonly settled upon Turkey’s inclusion and association in the Shah Deniz II. The
previous phase of Shah Deniz I gives characteristic gas to Turkey and Georgia.
Executive Erdogan and President Aliyev co-led in the first place HLSCC meeting in
Izmir on October 24th, 2011, and ensuing gatherings were held consistently in the
next years. The two sides had a broad plan for collaboration in economy and
legislative issues, and appropriately consented to arrangements going from venture
advancement to police training.

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As it is stated in the article three energy projects agreed upon between Turkey and
Azerbaijan are of an essential role to strengthen the relations between countries and
make possible for Turkey become an energy hub of the region. These energy projects
are Baku-Tbilisi-Ceyhan (BTC) Oil Pipeline and the Baku-Tbilisi-Erzurum (BTE)
Natural Gas Pipeline, also known as the South Caucasus Pipeline (SCP). Currently
both of these projects are functional. These pipelines are basic in transporting
Azerbaijani oil and normal gas to Europe. The BTC pipeline is around 1800 km long,
and the contract was marked after a progression of transactions among the legislatures
of Azerbaijan, Russia, Turkey, and Georgia and different privately owned businesses.
The aggregate day-by-day limit of the BTC is one million barrels, and its yearly limit
is 50 million tons. The BTE pipeline to Turkey has transported normal gas from
Azerbaijan since 2007. The choice to do as such was made while oil was being
extricated for the BTC pipeline. Taking into account the terms of this agreement,
which has been in power for a long time, Turkey will get 6.6 billion cubic meters
(bcm) of gas from the Shah Deniz I field in Azerbaijan. Third project agreed upon is
Trans-Anatolian-Pipeline (TANAP). TANAP, 1841 km-long pipeline, will convey 16
bcm of Azerbaijani gas to Europe by means of Georgia and Turkey, entering Turkey
from the Georgian outskirt and leaving from Thrace. When it has crossed the Turkish
fringe to Europe, the Trans Adriatic Pipeline (TAP), a 870 km-long pipeline, will
convey the Azerbaijani gas to Italy. Turkey will purchase 6 bcm and the rest will be
helped to Europe through TAP. There are studies on the likelihood of expanding the
ability to 31 bcm. Azerbaijan determined the longstanding East-West pipeline
arrangements in its favor conveying gas to Europe through TANAP.
Criticism:
As it is stated in the article Turkish-Azerbaijani relations are presently coming to
fruition based upon energy relations. This advancement is in light of the two nations'
needs in foreign approach and provincial legislative issues, supported by the shared
political will to keep up relations at this level. Financial development is in view of the
Azerbaijan's significant part in local energy undertakings and energy based
speculations outside the nation. Azerbaijan fabricates its strategies based on
transporting its underground assets to the business sector through great

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administration, fortifying its territorial part and understanding the nation's auxiliary
change. Most importantly, I think that, the advantageous position and current energy
diplomacy and policy held by the Azerbaijani government by-passes Armenia and
leaves it behind with no gain from the huge energy sector existing in the territory.
This is one of the main accomplishments of Azerbaijani government for time being.
Additionally, to tell the truth, it is of incredible significance for Turkey that
Azerbaijan likes to work together with Turkey. Turkey took a huge step forward as far
as moving from a travel nation into an energy center point. It is conceivable to say
that it will attempt to acquire influence by increasing more power over the travel
assets. The endeavors to set up anenergy securities exchange in Turkey are a
consequence of its devotion to this point. A definitive point is to turn into anenergy
center that may go similarly as pricing, which means to be able to negotiate and if
necessary to be dependent on its attitude. Meaning to have power and will to force
others to do, as Turkey wants them to do.It is also worth to mention that Turkey's
relations with Azerbaijan demonstrate that it won't make one-sided strides toward
standardization with Armenia in the close future.
Moreover, in my opinion from now on we stepped into a period in which Turkish-
Azerbaijani relations are energy oriented what's more, have a more grounded
establishment than in past periods. The eventual fate of this relationship depends
basically on looking after the current level of political will. Yet it is conceivable to
say that relations will be ensured with the length of the energy of the Southern Gas
Corridor what's more, reciprocal exchange, particularly Azerbaijan's interests in
Turkey, is maintained.
Article 4: Turkey-Azerbaijan Energy Relations: A Political and Economic Analysis,
by Cagla Gul YESEVI and BurcuYavuz TIFTIKCIGIL, 2015
Review:
There are more than 800 Turkish organizations in Azerbaijan. Complete investments
by these organizations are more than 3 billion dollars. At the point when Turkey's

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energy interests in Azerbaijan are viewed, these ventures surpass 6 billion dollars.
Baku-Tiflis-Ceyhan (BTC) Oil Pipeline and Baku-Tiflis-Erzurum (BTE) natural gas
pipeline are the working ventures between two nations. Baku-Tiflis-Kars (BTK)
railroad venture and Trans-Anatolia Pipeline Project (TANAP) are the project
expected to be realized between two nations.
In 1992, Popular Front of Azerbaijan the governor power by the time with lead of
EbulfeyzElchibey, provided the establishment for Azerbaijan State Oil Company.
Also, Popular Front started Azeri, Chirag and Guneshlifields expertise and
exploitation. Azerbaijan concurred with a few foreign organizations about Azeri,
Chirag and Guneshli fields. These organizations are BP, McDermott, PENZOIL,
UNOCAL, RAMCO, and STATOIL. TPAO joined this consortium with 2.5% offer.
At the point when Russia and Iran were excluded from the consortium, TPAO was
given an offer. The territorial and worldwide performing artists started to chip away at
pipeline courses. In the reminder marked on 9 November 1992, 3 pipeline choices
were considered for transporting Azeri oil. These are Baku-Novorossisk, Baku-Poti
and Baku-Ceyhan. Baku-Ceyhan was acknowledged as the most monetary effective
and minimum hazardous one for the tanker activity in the convention marked on 28
February 1993. Amid the time of AbulfeyzElchibey, Baku-Ceyhan Oil Pipeline
Preparatory Agreement was marked on 9 March 1993. Turkey was introduced as
"Energy Bridge" in the "Oil and Natural Gas Opportunities" gathering of 29-30 April
1993.
At the point when HaydarAliyev was chosen as President of Azerbaijan Republic on
3rd
of October 1993, he announced in Economic Cooperation Organization meeting
that the greater part of the oil understandings made by Azerbaijan would be updated.
Global consortium that assembled in London arranged a report and declared that
Baku-Ceyhan line is significantly more costly and other routes should be considered
for future investments and projects. Then open deliberations on the development
procedure of BTC oil pipeline were the primary political and financial issue of 1990s.
Turkey bolstered the development procedure of BTC oil pipeline; Turkey considered
that this pipeline would make it simpler for Turkey to achieve the crude materials
over the long haul and Azerbaijan would be a reliable accomplice for giving energy

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supply. Notwithstanding this, the development of the pipeline would give occupation
opportunities. In addition, transit expenses would add to Turkish economy. One other
purpose behind Turkey to bolster the development of Baku-Ceyhan pipeline was the
PKK fear. Turkey trusted that it could acquire universal backing to end PKK dread
with the development of the line. Turkey should help new assets to enter the world
market and turn into an energy center by empowering the transportation of Azerbaijan
oil.Another motivation of Turkey was to give the security of straits. Turkey intended
to secure new energy supplies and to end up as a transit nation to convey energy
assets of the Caspian district to Europe. Azerbaijan needed to sidestep Russia, BTC
pipeline was considered as best choice to diminish the reliance of Azerbaijan, United
States bolstered the undertaking, as one of the numerous pipeline ventures that would
transport Caspian energyassets toward the West.
Energyagreements that quickened with the mark of Baku-Tiflis-Ceyhan Oil Pipeline
and Baku-Tiflis-Erzurum Natural Gas Pipeline Undertakings between Turkey and
Azerbaijan turned out to be more far reaching when SOCAR (State Oil Company of
Azerbaijan Republic) purchased PETKİM in 2008. Another vital undertaking that
conveyed quickening to Azerbaijan-Turkey relations is Trans Anatolia Pipeline
TANAP. The update of comprehension of TANAP was marked on 26 December 2011
and intergovernmental assenting was on 26 June 2012. This pipeline would transport
natural gas from Azerbaijan to Europe through Turkey. For the consortium made for
TANAP, SOCAR, BOTAS and TPAO exist as essential accomplices. In the extent of
TANAP, while Turkey has 30% shares with BOTAŞ and TPAO in the consortium,
SOCAR has 70%. The task, which is planned to finish the first stage in 2018, expects
that gas will leave Azerbaijan through Georgia and arrives Turkey where it will be
transported and sold. Inside of the extent of task, out of 16 billion cubic meters of gas,
6 billion cubic meters will be sent to Turkey; 10 billion cubic meters will be conveyed
to Europe. For Turkey and Europe, TANAP will add to guarantee energy supply
security with solid supply and sensible cost.
Criticism:

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I strongly believe that from recent published articles this article is one of the essential
ones that explain near past and future relations between Turkey and Azerbaijan in the
economic, political and energy spheres. So, the careful examination should be done as
it shows and explains many economical, political and energy interrelation aspects
between two. To be consistent focus on energy aspects was given to.
In my opinion and as it stated in the article, the premise of Azerbaijan-Turkey
relations is frequently portrayed as companionship and family relationship by
authority circles. The statement that the transportation of oil would be acknowledged
through Turkey in the time of HaydarAliyev reinforced the relations between two
nations. It is critical that HaydarAliyev portrayed the relations as "one country, two
nations". From that point forward, Aliyev's desultory solidarity portrayal has been
constituted the premise of the relations in the societal and political levels. Then again,
the standardization of relations in the middle of Turkey and Armenia in 2009 brought
about issues in Azerbaijan-Turkey relations. In this period, cost of the Azeri common
gas was expanded, Turkish organizations experienced responses and banner
emergency happened. These occurrences demonstrated that the solid relations
between two nations could be disturbed. Turkey figured out how to consider the
sensitivities of Azerbaijan with a specific end goal to securing the kinship. It is a need
to reinforce the kinship and family relationship of the rambling level with the
monetary advantages and raise it to the key level. Notwithstanding be watchful about
not hurting passionate relations, more grounded monetary relations ought to be
created.
Contrary to what is explained in paper, I personally believe that economic relationship
between two countries is not as much as good as it might be. Simply thinking,
Azerbaijan still has a visa implementation on Turkey and this shows that at least in
bureaucratic level of relations things work slower that they could be in order to
promote and encourage individuals for more.
The only thing that goes good currently for both countries is energy relationships.
Accounting made (BTC and BTE pipelines) and currently being implemented projects
(TANAP) both sides are satisfied. Note that pipelines are vital benefactors for the

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freedom and welfare of Azerbaijan. Azerbaijan has been sending out 80% of its oil
through Turkey. TANAP will be the piece of Southern Gas Corridor bolstered by the
EU. This pipeline will also contributeTurkeys energy policy to become energy hub.
Article 5:Azerbaijan-Turkey-Israel Relations: The Energy Factor, by Alexander
MURINSON, Rubin Center, 2008
Review:
With the end of the Cold War, there was a paradigmatic movement in ideas of
security due not just to geopolitical changes additionally to weariness of secure
energy assets, ecological and biosphere changes and new ideological dangers. This
has had an immediate impact on the relationship among Turkey, Israel, and the
recently autonomous Azerbaijani republic. One of the advancements coming about
because of this worldwide movement was the rise of the Turkish-Israeli hub in the
Middle East, which after the breakdown of the Soviet Union in 1991 included a
recently settled Muslim state, the Republic of Azerbaijan.
In the conventional sense, security had a double objective of protecting the
respectability of a state's region and its power. Energy security is taking into account
a nation's capacity to have proceeded with access to adequate supplies of energy, oil,
and gas–either from sources all alone region or from sources abroad. Since
globalization has turned into the prevailing power vivifying the monetary reality of
the worldwide group, the opposition for solid wellsprings of energy and energy
security is at the highest point of the universal plan. Energy security has turned out to
be essentially interlinked with issues of worldwide security.
In the mid 1990s, Turkey looked to wind up perceived as the pioneer country among
the Turkic republics. Executive TurgutOzal's legislature left on foreign strategy
course went for restoring ethnic, social, and political binds going back to the Ottoman
period. Turkey looked for U.S. support for a pipeline extend that would give an outlet
to Azerbaijani oil, later known as the Baku-Tbilisi-Ceyhan venture (BTC). Fiona Hill
sees, "Subsequent to the mid 1990s, the twin objectives of Turkey's outside approach
in the [Caspian] area have been to secure new energy supplies, and to set up itself as

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the transit nation for energy streams from the Caspian to customer markets in
Europe." One of the key objectives of this relationship was to bolster mainstream and
ace Western administrations in the recently autonomous Muslim states. Business
advancement of these states' plentiful normal assets soon turned into one of the
substantial bearings of key collaboration between Turkey and Israel, and Azerbaijan
has turned into the point of convergence of this participation.Azerbaijan additionally
wished to develop its Western introduction through a partnership with Turkey and
Israel. Azerbaijani foreign policymakers understood the significance of ties among the
three nations, and an Israeli ambassador focused on the political significance of access
to Caspian hydrocarbon assets for Israel's relations with Turkey and Azerbaijan.
"When we discuss Azerbaijan," he said, "we discuss oil. Energy is a noteworthy
segment of this relationship."
The worries about energy security straightforwardly influenced political figuring in
Turkey, Israel, and Azerbaijan and assumed a prominent part in the key premise of
the relationship among the three nations. One critical part of energy security and its
financial advantages lays in control over hydrocarbon conveyance systems, for
example, pipelines and seaport terminals. The accessibility of various courses of
transportation for oil and gas additionally adds to energy security, since it diminishes
reliance on any specific pipeline if there should be an occurrence of terrorist assaults
or between state clash. The BTC pipeline issue for conveyance of oil from the
Caspian bowl toward the West went to the forefront of Israeli consideration, on
account of the ace Israeli hall in the United States. From August 1997, when
American Jewish pioneers met with Azerbaijani President HaydarAliyev, they
partook in a dynamic crusade to advance the BTC venture on Capitol Hill. This
campaigning battle mirrored the intersection of hobbies of Turkey, Israel, and
Azerbaijan.Not just does this pipeline give a shorter course to Azerbaijani oil fares to
its Western customers, including Israel, yet the Ceyhan port offices would likewise
permit the utilization of huge tankers hence making Turkey the essential oil terminal
of the Mediterranean.
Turkey's location at the junction of Europe and Asia has made it a perfect area for
development of an energy hall connecting Caspian oil and gas makers with purchasers

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in Europe and the Mediterranean. Taking after Azerbaijan's freedom in 1991, Turkey
proposed to develop a pipeline that would convey Caspian oil from Baku to its
Mediterranean oil terminal of Ceyhan. Initially this pipeline was seen as an absolutely
geopolitical undertaking to make nations like Azerbaijan financially and politically
autonomous from Russia and not obliged to Iranian intrigues in the locale. Israeli
policymakers had the same discernments and understood the estimation of the
development of this pipeline. The objective was to connect the ethnically and
linguistically related Azerbaijan to its characteristic associate and NATO part,
Turkey. Turkish initiative has propelled the thought of an East-West pipeline from the
Caspian since the mid 1990s. As the main energy security investigator of the Turkish
Petroleum Corporation (TPAO), Necdet Pamir advanced the BTC inside Turkish
political and business circles. Pamir additionally underlined that the pipeline's key
effect was more critical than its budgetary benefit. He focused on, “The line will by-
pass Russia. Focal Asian republics will no more rely on upon Russia to trade oil and
gas.” His vital vision allocated to Turkey the part of a worldwide energy center point
for conveyance of Caspian hydrocarbon assets toward the West. In the event that a
developing number of pipeline undertakings transporting oil from such destinations as
Kazakhstan, Russia, Azerbaijan, and Iraq through Turkish region were understood,
the Ceyhan port office would turn into one of the top worldwide oil terminals.
Turkey keeps on pursuing its participation with Azerbaijan in the area of gas
transportation and energy security. In March 2001, Azerbaijan marked its own
particular characteristic gas export manage Turkey to convey the Shah Deniz gas. As
a piece of the East-West "energy passageway," this trade will have expanding
significance in the years to come. Turkey will keep on supporting Azerbaijani
monetary independence and give a geopolitical extension to Azerbaijan to the Euro-
Atlantic group. Azerbaijani energy commitment will give a premise to Turkey in
future monetary and political incorporation inside Europe.
Criticism:
The date of this article stands a bit back and lacks some recent information about just
happened projects. On the other hand this paper investigates very interesting fact

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related to energy security. This fact is named Israel and its accordance to the
Azerbaijan-Turkey energy relation from a global point of view. Nevertheless, the
main point of this article again is Azerbaijan and Turkeys interrelations on energy
projects and energy security with a little contribution of Israel.
As it is stated in the article Turkey as Israel is another major importer of energy
resources especially hydrocarbon based resources. The lack of natural hydrocarbon
resources made both countries to develop wise international energy policies and
energy security formations. Their lack was Azerbaijan, as explained in the article
newly independent country. Azerbaijan seeking economical and political stability and
power wished to be part of global market through its energy resources they were
aware of. By well influential Israel (the well known Jewish lobby) with
geographically well and strategically good located Turkey, Azerbaijan stepped in to
the global energy market. Showing enough courage to step over Russia and bypassing
Iran, Azerbaijan made what I think correct movements and signed up some deals with
Turkey. These deals were also beneficial for Israel.
Moreover, it is a well-known fact that Israel is one of the major arm traffickers in the
world and armed systems trader. Azerbaijan is one of the good customers of Israel, so
it is not surprise that they had dealt in the energy sector at the same level. Of course
from all this agreements and contracts signed up one of the benefiting countries is
Turkey. Turkey especially, as it is stated in the article and I believe at, Ceyhan port
will become one of most important ports of energy sector making Turkey an energy
hub of the region.
CONCLUSION
Azerbaijan was the biggest oil supplier of Soviet Union. In the early years on
autonomy Azerbaijan made extensive ventures on oil fields under the concurrences
with significant organizations and entered among oil and gas creating nations by
expanding the offer of oil through pipelines. In the most recent five years the financial
development has been expanded. The state oil organization built up in the early years
of autonomy has started one of the significant organizations of the world. This

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organization has agent workplaces and business exercises in 15 nations and interests
in the foreign nations are proceeding with effectively. Particularly, ventures to Turkey
in the field of petrochemical, business and key collaboration agreements, the third
arranged pipeline for transportation of Azerbaijani gas to Europe notwithstanding the
current BTC and BTE pipelines demonstrate the present position of financial relations
in the middle of Azerbaijan and Turkey. In the wake of making concurrences on
misuse of energy assets in Caspian Sea essential courses for fare of energy assets
picked up significance.
BTC oil pipeline and BTE natural gas pipeline undertakings are vital regarding
provincial co-operation. The South Caucasus nations Azerbaijan and Georgia profited
from financial and vital additions of these undertakings while adherent of the
occupation and expansionist strategy, Armenia, stayed outside from the task. With the
start of oil and natural gas assets the nation's economy started to profit by the incomes
of energy sources.
Azerbaijan assumes a noteworthy part in the trade of Caspian stores to the world
business. With the Baku-Supsa, Baku-Novorossiysk and Baku-Tbilisi-Ceyhan oil
pipeline and Baku-Tbilisi-Erzurum natural gas pipeline Azerbaijan is the beginning
stage of deliberately and financially essential tasks. The trade of Turkmenistan's gas
and Kazakhstan's oil toward Caspian Sea and by BTE and BTC pipeline additionally
permits Azerbaijan to wind up more critical from the financial and key perspective, as
playing the energy send out passageway part. But what is more important than that it
is position of Turkey. Caspian basin and countries around are all have more or less of
natural resource to be exported. Turkey in this situation is a door to the international
energy market. Without Turkey it would be difficult to be able to play it on more
mutli-dimensional ground. The strategic location of Turkey made it easier for Caspian
basin countries to open to world market especially Azerbaijan. Azerbaijan by its
geographical location, ethnically and historically is closer to Turkey what makes it
easier to collaborate.
Azerbaijan, with oil incomes, increased budgetary force and it made conceivable the
critical interests in the district. In this manner, the undertaking concurred with Turkey

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and Georgia on the development of Baku-Tbilisi-Kars railroad is a conspicuous
illustration of this. Azerbaijan with Turkey has financed themselves in the
development of the line while Georgia has acquired 500 million dollars for the
financing of line. SOCAR interest in Turkey has started with buying PETKIM, the
biggest petrochemical plant of Turkey. SOCAR reported over 17 billion dollars
venture methodology until 2018 to the PETKIM. Petrochemical refinery site
constitutes the biggest offer of the interests in PETKIM. Reliance on unrefined
materials will arrived at an end and along these lines even the organization will turn
into the naphtha sends out.
All in all, Azerbaijan and Turkey became allies in energy sector and doing their best
in he favor of each other to secure their situation in energy market and continue their
energy policy in the region and globe.

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