AZERBAIJAN - Medgid Kerimov.

Minister of Energy since April 2001, Kerimov previously was head of the state-owned design institute GypromorNefteGaz. The ministry was created by presidential decree in April 2001 and was put in charge of the entire energy sector. It had been recommended by the IMF and the EU.

In September 2001 a presidential ruling determining the responsibilities of this ministry said it will develop investment programmes for the sector, devise the country's energy policy, regulate energy supply and transportation tariffs, issue licences, and oversee relations with international companies. It has since taken over from Socar the powers of granting and withdrawing E&P licences for oil and gas, and monitoring fulfillment of licence conditions. It oversees the PSAs.

Natik Aliyev, made head of Socar in 1993 by Gaidar Aliyev, is a geologist. His powers are limited. Ilham Aliyev, the first vice president of Socar in charge of foreign relations and the president's son, is far more powerful. Khoshbakht Yusifzadeh is vice president for exploration and geology and in charge of the divisions for production, economics, finance and processing. The head of Socar's foreign investment division is Valekh Aleskerov. Rafik Abdullayev is Natik Aliyev's assistant and Socar spokesman.

Socar, formed in 1992, has a monopoly of every aspect of the industry, with more than 75,000 employees, many subsidiaries, four scientific institutes, medical sanatoria and kindergartens. Much of its equipment is obsolete. Up to 40% is in need of repair.

British Petroleum is by far the biggest investor in Azerbaijan and leads foreign companies operating in the petroleum sector. It was in Azerbaijan that the idea of BP buying Amoco was conceived and pursued by BP's CEO John Browne, as BP and Amoco were rival leaders in AIOC. BP men now head the biggest E&P consortia in Azerbaijan, including David Woodward who is president of AIOC and Rob Kelly who is president of the Shah Deniz group. BP maintains close links with President Bush's special envoy to the Caspian, Steven Mann, and top executives have easy access to President Aliyev. UK Energy Minister Brian Wilson, who met Aliyev in Baku in June 2002, has been impressed with the way BP behaves in Azerbaijan.