AzerNews.

U.S. Ambassador to Azerbaijan believes one of the key steps for carrying out economic reform in Azerbaijan may be its accession to the World Trade Organization (WTO).

Speaking at a meeting with member companies of the Caspian-European Integration Business Club (CEIBC) on December 18, Richard Morningstar said the U.S. supports Azerbaijan’s efforts for accession to the WTO.

The meeting was devoted to the possible expansion of U.S.-Azerbaijan relations and the expansion of the activities of U.S. companies in Azerbaijan and Azerbaijani companies in the U.S.

Morningstar went on to note that despite the government’s efforts, there are still obstacles in this direction and in order to overcome them, Washington recommends Azerbaijan to continue its work on simplifying bureaucratic procedures, improving the efficiency of government agencies’ activities and the transparency of the economy, and creating opportunities for the development of small and medium businesses.

Morningstar said Azerbaijan has made impressive strides in recent years.

“To continue this success, a major challenge for Azerbaijan is to develop the human factor. Azerbaijani population is young and very talented. The education system that is being reformed now should create conditions for using these talents,” the ambassador said.

Azerbaijan has been in talks with the WTO since 2004 to join the organization. Azerbaijan’s accession to the WTO is expected to help increase the country’s non-oil exports.

The next round of negotiations on Azerbaijan’s accession to the organization was postponed till the first quarter of 2014. The delay is related to the organization’s preoccupation with countries that are in the very last stage of their accession to the WTO. Meanwhile, the Azerbaijani side has prepared all the necessary documents.

Talks are also being held at bilateral and multi-lateral levels with WTO member states, and work is underway to bring Azerbaijani laws in line with the WTO regulations.

The number of WTO member states seeking to start bilateral talks with Azerbaijan is growing. Azerbaijan has held consultations with 12 countries in bilateral meetings, including Argentina, Indonesia, and other countries of the region.

U.S. appreciates Shah Deniz 2

Touching on the completion of the Shah Deniz -2 final investment decision, Morningstar gave a high evaluation of the documents signed within the framework of the Shah Deniz Stage 2 project in Baku on December 17, as well as the development of the Azerbaijani-American relations over the past years.

The ambassador noted that the Shah Deniz 2 project would provide big benefits for Azerbaijan, Georgia, Turkey, Greece, Italy, and Balkan countries including Bulgaria, Albania, Croatia, Montenegro, and possibly Bosnia.

He highlighted the participation of many companies in the implementation of these projects, saying, “Turkey and Greece will become not only customers, but also transit countries. Azerbaijan in its turn will strengthen its role as an energy supplier.”

Morningstar also said the export of Azerbaijani gas is playing an important role in meeting global gas demands, adding that the energy corridor ensures the sovereignty of Azerbaijan and Georgia, and is considered an alternative source for provision of global energy security.

Morningstar considers the implementation of the gas corridor project as part of the East-West corridor.

The U.S. Ambassador was then presented with the CEIBC honorary membership certificate by CEO Telman Aliyev.

The Shah Deniz Consortium has made the final investment decision (FID) on the second stage of offshore gas condensate field development. The signing ceremony of the document kicked off in Baku on December 17.

Southern Gas Corridor is a major project, designed to meet European gas needs for decades to come.

The gas which will be produced in the second phase of Shah Deniz field is considered the main source of the Southern Gas Corridor project. A consortium of Azerbaijani Shah Deniz gas condensate field development announced its choice of the TAP project as a gas transportation route to the European markets in late June.

Shah Deniz-2 project authorization means the transition of the project from concept into immediate implementation.

Shah Deniz reserves are estimated at 1.2 trillion cubic meters of gas. The cost of developing the second phase of the Shah Deniz gas condensate field is estimated at $25 billion.

Within the second phase of development, some 16 billion cubic meters of gas is planned to be produced, six billion of which will be transported to Turkey and ten billion to Europe.