The Cabinet of Ministers has decided to "organize the supply of natural gas within the Republic of Azerbaijan." In this regard, Prime Minister Ali Asadov signed a decision. According to the decision, the State Contract Corporation of the Republic of Azerbaijan "Azercontract" Open Joint-Stock Company has been entrusted with the purchase of natural gas from gas producers in the domestic market from January 1, 2021, its transportation, sale to domestic distributors and consumers. SOCAR for the above purposes: Azerkontrakt OJSC on the basis of relevant purchase and sale agreements, except for the volumes of commercial gas produced by SOCAR and its subsidiaries (Azneft Production Association), intended for export in accordance with the approved Fuel and Energy Balance for each year must ensure that it is sold to. SOCAR and its affiliates have the right to enter into gas supply agreements with gas producers operating within the Republic of Azerbaijan (joint ventures, operating companies and contractors operating under the relevant production sharing agreements and other similar agreements). ensure that the obligations are transferred to Azercontract OJSC in accordance with the terms of these agreements and applicable law.
The rights and obligations of SOCAR on gas sales contracts with consumers and distributors of the domestic market (Azerenergy Open Joint-Stock Company, Azerigas Production Association and Gas Operation Service of the Nakhchivan Autonomous Republic) in accordance with the terms of those contracts and applicable law They must ensure the transfer to the OJSC. In accordance with the legislation applicable to the implementation of operations on the distribution, production, storage and delivery of volumes of gas received by SOCAR under joint production sharing agreements and joint ventures, as well as gratuitous supply to SOCAR, representing the state. ensure the conclusion of relevant agreements between the entities included in its structure and Azercontract OJSC. Azercontract with a body included in the structure of SOCAR (Gas Export Department) in accordance with the legislation in force for the preparation, transportation and storage of gas volumes specified in paragraph 2.1 of this Decision between domestic gas producers and consumers (distributors) ”Should ensure the signing of relevant service agreements between the OJSC. It was determined by the decision that the transfer of rights and obligations under the contracts provided for in paragraphs 2.2 and 2.3 of this Decision to Azercontract OJSC does not apply to the financial claims and obligations arising on January 1, 2021 under these contracts.
To instruct SOCAR and Azercontract OJSC to ensure the implementation of the contractual relations established by Part 2 of this Decision from January 1, 2021 and to resolve other issues arising from this Decision. The Ministry of Finance of the Republic of Azerbaijan together with the Ministry of Economy of the Republic of Azerbaijan, SOCAR, the State Oil Fund of the Republic of Azerbaijan and Azercontract OJSC will sign new agreements on clauses 2.2 and 2.3 of this Resolution, as well as new gas supply by Azercontract OJSC. submit proposals on financial mechanisms for the fulfillment of payment obligations under contracts in accordance with the terms of the contract to the Cabinet of Ministers of the Republic of Azerbaijan within one month.
The Ministry of Economy of the Republic of Azerbaijan shall take necessary measures to bring the constituent documents of Azercontract OJSC in line with the legislation of the Republic of Azerbaijan and to reflect the responsibilities arising from this Decision in the constituent documents. The Ministry of Justice of the Republic of Azerbaijan shall submit to the Cabinet of Ministers of the Republic of Azerbaijan, within three months, proposals on bringing normative legal acts and normative acts of central executive bodies into compliance with this Decision.
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