BAKU – Today marks the 30th anniversary of Azerbaijan’s “Contract of the Century,” a pivotal agreement in the nation’s history, which set the stage for extensive oil field development and significant economic transformation.

According to Trend News Agency, the historic contract was signed on September 20, 1994, at the Gulustan Palace in Baku. It involved thirteen companies from eight different countries, including Azerbaijan, the US, the UK, Russia, Turkey, Norway, Japan, and Saudi Arabia, and covered the development and production-sharing for the Azeri, Chirag, and Gunashli oil fields. This agreement was a cornerstone in Azerbaijan’s strategy to harness its oil reserves for national development and was spearheaded by then-leader Heydar Aliyev.

The contract, detailed in a 400-page document written in four languages, not only facilitated the exploitation of substantial oil reserves but also established essential operational bodies such as the Steering Committee, the Azerbaijan International Operating Company (AIOC), and the Advisory Council. These bodies were officially sanctioned to operate following a special decree issued by the President of Azerbaijan on December 2, 1994, and subsequent ratification by the Parliament on December 12 of the same year.

Reflecting on the contract’s significance, it was not merely an economic agreement but a strategic maneuver to stabilize and grow Azerbaijan’s economy in the aftermath of the Soviet Union’s dissolution. Emerging from a severe crisis in the early 1990s, Azerbaijan saw this agreement as a lifeline that could secure economic sovereignty and facilitate national unification and modernization.

Over the years, the “Contract of the Century” has led to 26 additional agreements involving 41 oil companies from 19 countries, signifying a broad international interest and investment in Azerbaijan’s oil sector. This contract paved the way for Azerbaijan to exploit its oil wealth, thereby providing the resources needed to rebuild the nation’s economy, modernize its infrastructure, and maintain its political independence.

Today, 30 years later, the successful implementation of this contract underscores Azerbaijan’s economic resilience and its pivotal role in the global energy market. The enduring impact of this agreement continues to affirm Azerbaijan’s strategic foresight and its ongoing commitment to leveraging its natural resources for the benefit of its people and its future.