The State Oil Company of the Azerbaijan Republic (SOCAR) is one of the top 50 oil companies in the world with an EBITDA of $3.5 billion and a net profit of over $1.2 billion for the year 2013. The full consolidated statements of 31 December 2013, audited by Ernst and Young Holding (CIS) B.V., are available here.
The company was established by Presidential Decree on 13 September 1992 in accordance with Azerbaijani legislation and is domiciled in the Azerbaijan Republic. SOCAR is involved in upstream, midstream and downstream operations. Its main functions pertain to the extraction, refining, transportation of oil, gas and gas condensates, and sale of gas and oil and gas products.
SOCAR is 100 percent owned by the Government of the Azerbaijan Republic. SOCAR participates in joint ventures (including ventures in Georgia and Turkey), consortia, and operating companies established with SOCAR’s participation. Representative offices and subsidiaries of SOCAR are located in Georgia, Turkey, Romania, Austria, Switzerland, Kazakhstan, Great Britain, Germany, Russia, Belgium, USA and Ukraine and trading companies in Switzerland, Singapore, Nigeria, and other countries.
SOCAR has an extensive number of partnerships around the globe with companies across a wide range of sectors. Companies such as BP, Exxon, Statoil, Total, Chevron, Itochu and Lukoil are involved in developing reserves in the Caspian Sea. SOCAR holds a crucial position in regional and international energy projects that include the Trans-Anatolian Natural Gas Pipeline (TANAP).
SOCAR has received high ratings by leading global agencies such as Fitch Ratings (BBB- which is an investment grade) and Standard and Poors (BB+).
SOCAR’s mission is to provide energy security for the Republic of Azerbaijan, a country with estimated gas reserves of 3-6 (2.55 proven and total estimated 6) trillion cubic metres. It is committed to increasing the scientific, technical, economic and intellectual potential of Azerbaijan through its business practices and choice of projects. SOCAR incorporates principles of sustainability, social responsibility and corporate ethics into its practices worldwide. The full text of the Code of Business Ethics is available here.