Speech by Ilham Aliyev at the ceremony marking the 90th ceremony of Azerbaijan State Oil Academy (ASOA)

Dear friends,

Dear ladies and gentlemen,

Distinguished guests,

I congratulate you all wholeheartedly on the occasion of the 90th anniversary of the State Oil Academy and wish successes and good health to all professors and teaching staff of the Academy as well as to all students.

Azerbaijani State Oil Academy is one of the leading higher educational schools of our country. It has the greatest and very glorious history.

Established in 1920, this higher educational school contributed greatly to the Azerbaijani science and education in all periods of time.

You know well that this higher educational school acted under different names in various periods. Founded as the Polytechnic Institute, it continued its life under the name of Oil Institute, then Industrial Institute, Azerbaijani Oil and Chemistry Institute, and finally, got the current name of the Azerbaijani Oil Academy.

However, notwithstanding the name it had, students educated at this Academy and their larger part gave big contribution to the oil and gas industries of Azerbaijan, Soviet Union and other countries in all periods.

The education was at the highest level here in all periods of time. The State Oil Academy was the higher educational school making Azerbaijan be known all over the world. I am very pleased that, today, these important traditions still exist and are continued. People working now at the Academy – professor and teaching staff, our greatest scientists bring their valuable contribution to the development of independent Azerbaijan and form professionals for independent Azerbaijan. These specialists will lead the way of development of oil and gas sector, which is the main economic part of Azerbaijan in the long years to come.

You know that great leader Heydar Aliyev graduated from Azerbaijani Industrial Institute and kept always good memories about those years. Heydar Aliyev completed his studies at the Architecture section of Civil Engineering Faculty, and I know for sure that he had very good memories about those years. It may be that the best memories of adolescence period were indeed linked to this higher educational school.

During all period of his leadership in Azerbaijan, the great leader paid a particular attention to the development of Oil and Chemistry Institute. When he was the leader of the country, both in Soviet times and the independence period, the processes inside the Academy were always in the focus of his attention. Employees of the Academy remember well the participation of Heydar Aliyev at the 80th anniversary of the Academy ten years ago, and he delivered a sincere speech at that time.

Currently, the foreign relations of the Academy are also at high level. I am very delighted that this good tradition continues, and obviously, under Soviet times, foreign students were sent here for education. This was a centralized procedure. Today, increasing number of foreign students demonstrates that the education at this higher educational school is truly at a high level. I am sure that foreign students coming to get education will return to their motherland with good impressions about Azerbaijan. During various periods of time, almost 10 thousand students graduated from this Academy, and naturally, they will remember these moments till the end of their lives. Some part of their lifetime is linked to Azerbaijan and of course, this factor will play its role in further development of our foreign relations.

Huge attention is paid to the improvement of educational system in Azerbaijan. Education is our future. The level of education will define future prospective of our country. We know well the experience of developed countries and see that those countries develop truly, when the level of education is high. We strive to pay a constant attention to this field in Azerbaijan and undertake practical measures, foster logistical support of educational system and most importantly, increase the educational quality as well. This process should be conducted and is conducted in consistent, harmonized and systematic ways both at secondary and higher educational schools.

As you know, we have practically strengthened logistical support in all higher educational schools which is accompanied with repair and renovation work. Necessary equipment is provided to those schools. The similar processes are taking place also at secondary schools. During recent years, over two thousand schools were built and fully repaired in Azerbaijan. Schools are equipped with computers. We should enable our children and teenagers to familiarize the most progressive experience since early years and improve the level of their knowledge in a consistent manner. We will try to apply in Azerbaijan the most leading experience existing in the world. We should strive to find resolutions to the all problems in the field of education. As you know, the attention paid by the state to educational issues can be measured also by the funds we allocate for education. These funds are increasing each year and they hold the second place in the Azerbaijani state budget following the military expenditures.

If not for the war situation that Azerbaijan is in, it is very probable that our educational fees would be at a top level. We should use very effectively the allocation of funds to education. I would like to reiterate that in the course of recent years, deepening reforms carried out in this field in Azerbaijan are on right track. We are aware of and watch processes unfolding all over the world and should improve the level of our education by choosing the most suitable option for our country.

Furthermore, our youth should support our ideology of being an Azerbaijani and independence based upon national values. Our national values are above all for us. Indeed, our national values and traditions preserved us from assimilation throughout the centuries. We lived as a part of various empires and countries and were deprived of independence. But in spite of that, we managed to preserve our national identity. Indeed, for this reason, our attitude to our national values was at the highest level ever. Today again, our commitment to the national values plays an exceptional role in educating, forming young generation and ensuring long and sustainable life of Azerbaijan as an independent country. I would wish very much that our youngsters educated at all our higher educational schools should not forget our national values and be committed to the high professionalism.

Today, we live in a globalizing world. The globalization has both positive and negative sides. It is being talked already openly, and discussions going on in the world cause a very big interest. Of course, we are a part of international community.

Azerbaijan is a newly independent, dynamic and open country. We pursue the policy of open doors. However, in spite of that, our national values, history, literature and mother tongue are our stronghold, foundations and the path towards future. I wish very much and very delighted that our youth is being up brought in the spirit of national patriotism and will fulfill important tasks for the sake of our nation in the future.

We have to ensure the implementation of long-term development strategy of Azerbaijan. This strategy has different directions. First of all, today Azerbaijan is formed fully as an independent country. I think that we have already completed our transition period several years ago. Today, Azerbaijan is not deemed already as a transition period country, and this is our success. We managed to pass very swiftly and successfully from one political economic order to another.

Today, Azerbaijan is a politically and economically independent, free, and open country, which relies upon its own resources. Our economic achievements support the political ones. These successes are a big support for us to put forward political initiatives. Therefore, steps aimed at fostering economic potential are also one of factors strengthening Azerbaijani independence.

On these days, Azerbaijani economy is diversified. Economic crises, started last year and still continuing in the world, have demonstrated it once again. We have rightly sorted out from this crisis. We have surmounted truly this obstacle thanks to the right foundations laid down as a basis of our economy.

I treat very optimistically long term development prospective of Azerbaijan. We elaborate relevant plans and programs on the basis of a strategic course for each five years. All these programs are implemented in excess. We dispose rich natural resources. Of course, it increases also our capabilities. However, there are several countries in the world which are rich with natural resources, but they fail to bring benefits in all cases or do not create conditions to obtain achievements. On the contrary, the gap between the wealthy and the poor deepens further. While defining our oil strategy and economic priorities, we study obviously both positive and negative practices. During the last six years, the poverty level in Azerbaijan dropped from 49% to 11%. It shows that revenues generated from natural resources are distributed fairly. It demonstrates that the stratification is not taking place inside the Azerbaijani society. On the contrary, gaps are bridged between people in terms of incomes. It shows that the very appropriate and transparent management, including resources management system is created in Azerbaijan. In a word, the policy of continuation of economic reforms and completion of political reforms will be continued further in Azerbaijan.

In order to fulfill the tasks faced by us we need first of all professionals because today Azerbaijan’s economy and particularly, industrial potential of our country develops at a very fast pace. We traversed a shortcut and a successful path from economic reforms to the industrialization of our country. Today, industrial enterprises created and being created in Azerbaijan in line with modern world standards will ensure our economic development in the decades to come. Unfortunately, sooner or later, natural resources come to an end. Time will come and we will also face this situation. We should be ready for that. We should get ready to the moment when after 50 or 100 years, our oil and gas resources would lessen, then we will dispose a strong industrial potential to enable Azerbaijani state to live and live well thanks to the development of non-oil sector. Therefore, the development of our industry and our economic reforms require the formation of very professional specialists with modern thinking. Of course, the main responsibility lies on the shoulders of higher educational schools in this respect.

Obviously, we will continue sending our young students to the world’s leading higher education schools. As you know, there are several years already that this program is being implemented.

Each year, hundreds of our youngsters are sent to the world’s leading higher education schools and study there on the basis of funds allocated from the Azerbaijani State Oil Fund. I hope that their larger part will return to Motherland and use their knowledge for the development of the Motherland.

However, it does not solve the lack of professional human resources. Of course, the formation of professionals should be ensured inside the country. In this regard, I would like to say once again that we envisage undertaking a set of comprehensive measures in the field of education. Our children should be engaged with information and communication technologies from childhood. A very significant progress is obtained in this field. Today, there is one computer for every 20 pupils at our schools. Meanwhile, several years ago, the situation was different when we had only one computer for every thousand schoolchildren at the schools. And, that only PC was there just for the sake of decoration. Nobody could use it. We have implemented swiftly not only this program, but opened PC labs even in the most remote villages. When I visit remote regions, I check each time and see that PCs are in use. It means that they should show me that PCs are not serving a symbol of decoration any longer. I check and see that our children are already aware of information and communication technologies in the most remote mountainous villages and regions located far away from the capital.

Our increasing economic development is already a reality. We know well what will look like economic and industrial potential of Azerbaijan after five or even 10 years. The formation of specialists should be also in line with this process.

Therefore, I would like to reiterate that the preparation of specialists is one of the most important problems in our country not only in the field of education or any specific field of oil and gas, but in general we have to obtain these results in all fields. Look how the cutting edge technologies existing in the world are being brought to Azerbaijan today. Equipments defining the most leading and high-class service infrastructure are used in all fields. The construction work is under way. The country modernizes. We bring the best examples to Azerbaijan both in the field of architecture or technology. We should strive to turn our country into a truly modern country. In some cases we pay efforts to get ahead of time. We bring newly created equipment to Azerbaijan and accumulate experience in using them. Therefore, I would like to declare once again that the formation of specialists is our common national task. Of course, the main burden of this work lies on the shoulders of higher education schools. I hope that we will see more serious results also in this field.

I would like to reiterate that Azerbaijani State Oil Academy rendered exceptional services to the development of our country. As a result of implementation of Heydar Aliyev’s oil strategy, we managed to obtain development of oil and gas industry, its reconstruction and activation. Of course, people sitting in this hall know for sure that in spite of its fame of being the oil country in the past, Azerbaijan was going to lose its glory in early 90-ies because gas production declined sharply at that time. We could not meet domestic demands for natural gas. Thus, the larger part of our country remained without gas. Oil production decreased drastically and we had to meet only our domestic demands for oil. If it would continue, then today Azerbaijan could end up among the least developed countries not only in oil and gas field, but also from the general economic point of view. If we will remember those days of unpleasant processes unfolding in early 90-s, economic and industrial decline, political crisis, civil confrontation and other negative factors, we could say that our country was about to fail. If we shall add also the economic field and the lack of successes in this field, then our country’s future could be linked to the most pessimistic forecasts. Therefore, as a result of courage and far sighted policy of Heydar Aliyev and the implementation of his oil strategy, we managed to attain a serious turning point in this field and internal processes in general. Thanks to the production increase, attraction of foreign investments, creation of favorable climate for investors, full protection of national interests, broadening of international relations, construction of oil and gas pipelines, exploration of large oil and gas fields and the implementation of oil and gas projects in Azeri-Chyrag-Guneshli and Shahdeniz fields, today we can talk about these successes. We should be realists.

Of course, today we are trying not to be dependent on oil and gas factor. Our strategic course lies indeed in this principle of non dependence. We wish to see the development of non oil sector. However, we should treat all issues from realistic point of view. If we wouldn’t have this strong natural resource, then how could we develop the non-oil sector? We did not have money and financial resources. The treasury was empty in early 90-s. The remaining funds were plundered. In early 90-s, foreign financial institutions treated Azerbaijan as a very risky country and nobody wanted to allocate loans to us. Today, we do not face this problem. We can bring financial resources in any quantities from abroad to Azerbaijan and sometimes, offers made to us are much higher than our demands. But, during those years, who could give us loans when they knew that the loans will never return?

Therefore, the implementation of oil strategy was the only way out from this situation. However, we started to implement that strategy in a very complicated geopolitical situation under the leadership of Heydar Aliyev. All of us know well that our oil and gas initiatives faced a strong resistance in some cases. In some cases, this was felt inside the country – unfortunately, there were such cases – and outside the country. If we would resist that pressure and demonstrate our principal position and courage, then we could derail from this pathway and it could turn into a tragedy for our country. Therefore, we know well this history and should not forget it. Today, yes, Azerbaijan is already formed country with its specific place in the world energy market and demonstrated itself as a reliable partner. Everybody should agree and agrees on that because this is a reality, and it is not possible to deny this reality. However, this reality is not taken for granted. Indeed, we have created this reality thanks to our efforts and in some case, our positive persistence, courage and firmness.

Today, Azerbaijan’s oil and gas sector lives its period of renaissance. Our oil production increased by 5-6 times in comparison with the production level observed in the early 90-s. The same can be said about natural gas production. Our prospective is more promising. The work carried out now in oil and gas sector will result in formation of a new situation after several years. We have left already our imprint on world’s energy map. Oil and gas pipelines constructed by our initiative opened all ways and markets for us. We dispose a diversified infrastructure and financial resources. We managed to protect oil generated money as a result of creation and running of the Oil Fund. Money accumulated in State Oil Fund increase by each year. In spite that, during last year of crisis, oil prices dropped by 4-5 times, we used again very efficiently those funds to continue the work going on in the country and maintain also the volume of resources in the Fund. These resources are increasing gradually.

Today, we are able to implement any project requiring large financial resources relying on our own force. This is a big success and value.

Independence can be built only on a strong economy. Independence is above all for us. There is nothing that could stand above it. We have to foster this independence. It requires larger capabilities to pursue an independent policy and put forward independent initiatives in the filed of economy and energy. It requires resources from financial, economic and political points of view. Of course, the unanimous attitude to these issues inside the Azerbaijani society boosts our positions. I would like to say again that projects initiated in the past and being advanced today by Azerbaijan in oil and gas sector play a decisive role. Today, no initiative could be forwarded in energy or transport and economic fields without full participation of Azerbaijan. Energy issues cannot find its resolution in wider region without the participation and consent of Azerbaijan in each case. Our policy is very clear in this respect. We strive to use our energy resources only to deepen the cooperation and reach this target. We have never used and will never use our energy resources for other purposes. We use and will use these opportunities only to foster friendly and good neighborhood relations between the countries in the region, ensure our national interests and make Azerbaijan even mightier.

Of course, the Azerbaijani State Oil Academy has a very big role in the continuation of our successful oil strategy. If our specialists would participate in the implementation of the Contract signed in 1994, then we could have early oil only after 3 years following its signature. This is a rare experience in world energy and oil practice. Usually, early oil is produced 10 or even 15 years after the signature of the contract. In our case, the contract was signed in 1994 and the early oil was produced in 1997. Our specialists, graduated from the State Oil Academy, engineers and scholars have played a tremendous role in the successful implementation of oil strategy. I appreciate it very highly and would like to say that the work to be done is still significant. Our oil and gas strategy is implemented successfully and this is a long term strategy. Following decades, Azerbaijan will maintain its leading role in this field and region.

Dear friends, I congratulate you once again wholeheartedly on this splendid anniversary. I wish you health and new successes. Thank you.