Contract of the Century has ‘special place’ in history of US-Azerbaijan ties – envoy

The Contract of the Century has a special place in the history of U.S.-Azerbaijan bilateral relations, U.S. Ambassador to Baku Mark Libby said on Friday.

Ambassador Libby hosted a reception to mark the 30th anniversary of the signing of the Contract of the Century, News.Az reports.

The diplomat recalled that the agreement signed in 1994 between SOCAR and 11 foreign energy companies, including 4 U.S. companies, to develop the flagship ACG oil field.

“Requiring complex and lengthy negotiations, the deal represented what was then the largest Western investment in the former Soviet Union. It established ACG as the foundation of Azerbaijan’s energy sector and ultimately of the remarkable prosperity Azerbaijan enjoys today,” he said.

Ambassador Libby highlighted two points about the significance of the Contract of the Century for Azerbaijan and the United States.

“First, at a time when most post-Soviet countries were struggling to rebuild economically, the Azerbaijani government in the early 1990s had the wisdom and foresight to take an uncharted path and welcome foreign investment into its energy sector,” he said.

“This required a high tolerance for risk and a cleared-eyed vision for the future, but it paid major dividends. It is no exaggeration to say the Contract of the Century changed the course of history and of energy geopolitics across the region.”

“Second, this agreement has a special place in the history of U.S.-Azerbaijan bilateral relations,” the diplomat added.

He emphasized that U.S. companies and U.S. political support were indispensable factors in the contract negotiations, in developing ACG, and in launching the associated Baku-Tbilisi-Ceyhan export route.

“In this regard, the Contract of the Century is a prime illustration of what we can achieve together when we combine U.S. investment and political heft with Azerbaijani initiative and leadership,” the ambassador said.

He underlined that the U.S. and Azerbaijan also played multifaceted roles that were critical to the subsequent development of the Southern Gas Corridor.

“By participating in the Southern Gas Corridor, Azerbaijan has established itself as a key player in the regional energy market and a critical energy supplier to Europe.”

“As Azerbaijan embraces the global energy transition and prepares to host COP29, the government has made promising commitments on emissions reductions and has a bold agenda to become a regional leader in green energy exports,” he added.

News.Az