Caspian Energy (CE): Mr. Mammadov, how do you assess the activity of the representative office of the State Oil Company of Azerbaijan in Georgia?
Mahir Mammedov, Director General, Representative Office of the State Oil Company of Azerbaijan Republic (SOCAR) in Georgia: SOCAR’s representative office in Georgia has been operating since 2006. It is SOCAR’s first representative office opened beyond Azerbaijan. There is a business entity SOCAR Energy Georgia operating within the structure of the representative office that includes a number of daughter companies such as SOCAR Georgia Petroleum, SOCAR Georgia Gas, SOCAR Georgia Security and Kulevi Oil Terminal (Black Sea Terminal Ltd).
CE: Could you please speak about their activity in details?
Mahir Mammedov: SOCAR Georgia Petroleum, Ltd is an affiliate company of SOCAR Energy Georgia, Ltd operated by the State Oil Company of Azerbaijan Republic. SOCAR Georgia Petroleum, Ltd has been operating in the Georgian market since September 2006. The goods turnover exceeds several tens of millions of US dollars. The Company has been successfully importing and selling qualitative products.
The Company has been developing its retail trade network since 2008. There are 112 stations currently operating in Georgia (105 petrol filling stations (20 combined stations providing both CNG and petrol), 6 CNG stations and 1 LPG station). The number of petrol filling stations will have been increased up to 120 by the end of 2014. Starting from 2009 SOCAR Georgia Petroleum, Ltd has introduced an integrated coupons and cards service. The present personnel of the company number over 1500 employees.
SOCAR Georgia Gas, Ltd is the daughter company of SOCAR Energy Georgia, Ltd which was established by the State Oil Company of Azerbaijan Republic in June 2007 at the local gas market of Georgia. The company participated in and won the tender announced by the Ministry of Economic Development of Georgia for privatization of state-owned gas distribution companies (President’s order #306 as of May 13, 2008). After going through all instances envisaged by the legislation, SOCAR Georgia Gas, Ltd (SGG) shall distribute gas and bear responsibility for provision of gas supply to 30 regions such as Kakheti, Mtskheta-Mtianeti, Kvemo-Kartli and Shida-Kartli, Ajaria, Guria, Imereti, Samegrelo. About 347,000 new consumers have been included into the general gas network. The total volume of investments of SOCAR Georgia Gas, Ltd reaches $153 mln. New capacities with the total length of 3970km have already been built. The number of workers and specialists in the main staff of the company totals about 1500 people.
SOCAR Georgia Security, Ltd (SGS) is also a subsidiary company of SOCAR Energy Georgia, Ltd. It was founded on August 6, 2007 and has been functioning as an independent unit. The staff exceeds 700 people.
Security and control over petrol filling stations, terminals, offices and facilities as well as personal security is the main activity that SOCAR Georgia Security, Ltd (SGS) is dealing in. At present, the company is performing operations at over 130 facilities.
CE: Which tasks did you face when opening the representative office in Georgia? To what extent did you manage to solve them?
Mahir Mammedov: Taking into account that I had worked for 12 years in different commercial structures of Georgia before and knew the country, peculiarities and its people well enough, it helped us to avoid the problems. Our profile task was aimed at arranging sale of oil products in the network of petrol stations and completing the construction of the Kulevi Oil Terminal. Apart from this, from the very beginning we declared that we would create new working places, help ethnic Azerbaijanis, citizens of Georgia living mainly in Kvemo Kartli and Kaheti regions, integrate into the Georgian community and promote qualitative teaching of the Azerbaijani youth residing here.
CE: SOCAR in Georgia is the biggest tax payer...
Mahir Mammedov: SOCAR in Georgia has been the biggest tax payer for the past 5 years. Over this period we paid taxes worth over 1 bln lari (about $600mln) to the state. We are not going to yield the palm this year as well – our payments to the budget of the country will total about 170 mln lari this year.
CE: What role does SOCAR Energy Georgia play in general activity that SOCAR implements in different countries?
Mahir Mammedov: I think, both chronically – though it is not our credit but the merit of SOCAR President Rovnag Abdullayev who chose Georgia to be the first place for opening the foreign representative office – and statistically, we would be leaders of such secret competition. The significance of our presence in the country is rather big. It is not a secret that Georgia gained an energy security owing to the decisions of President of Azerbaijan Ilham Aliyev. 90% of gas and considerable volume of oil products come to the country from Azerbaijan. There is no country, but Georgia, where SOCAR has ever gained such indicators.
CE: What are the results of activity of SOCAR in Georgia?
Mahir Mammedov: I will mention only some statistical indicators. There are over 5500 people working for our holding. We already have more than 100 petrol filling stations operating all over Georgia. About 30% of the retail market of oil products belongs to us. We have commenced and continue large-scale provision of gas supply to several regions of the country. We connected and supply gas to 190,000 new subscribers…
CE: In which socially significant projects is the representative office of SOCAR involved in Georgia?
Mahir Mammedov: Company SOCAR serves as the great supporter of Georgian sport. The Company fruitfully cooperates with various national federations of Georgia and makes its relative contribution into the development of sport in Georgia.
From June 18 - July 02 the 2013-2014 women's grand prix fifth stage in chess was held at the hotel complex "Lopota Resort" situated at the Lopota Lake. Georgia was the first to host the international competition at such a high level whose general sponsor was SOCAR Energy Georgia.
The chess festival "Maiski Kavkaz" was held from May 26 to 28 in Georgia.
The author of the idea, Nana Aleksandria, has selected these dates purposefully - on May 26, 1918, the agreement of independence of Georgia was signed at the Palace of Youth of Georgia (then called the Palace of Pioneers).
This wonderful idea was implemented by company SOCAR Energy Georgia which acted as the general sponsor of the festival. The festival was held under the aegis - Champions need energy - SOCAR Energy Georgia!
Throughout one year, SOCAR has been acting as the official partner of the National Olympic Committee of Georgia and in this period it played a significant role in funding Olympic programs and projects.
On June 04, at the head office of the Representation of SOCAR in Georgia, situated in the city of Tbilisi, extension of the agreement took place between the company SOCAR and the national Olympic committee of Georgia.
We also lend support to orphanages of the country.
Since the past winter we have been supplying free of charge gas to temples and prayer halls of all religious confessions of the country, which was, by the way, highly assessed by the Georgian public, paying for education of about 800 Azerbaijanian students at Higher Education Institutes, and carrying out many other charity activities. A memorandum on provision of stipends, with an opportunity to be employed at SOCAR Energy Georgia in future, to 30 distinguished students has been recently signed with the Ministry of Education of Georgia at the initiative of Rovnag Abdullayev.
President of Azerbaijan Republic Ilham Aliyev who visited the new administrative building of the State Oil Company of Azerbaijan Republic (SOCAR) in Georgia within the framework of the working visit, highly evaluated the activity of the representative office. As it is known, construction of the new administrative building of SOCAR in Georgia started in 2009 and in 2012 it was put into commission.
The complex is the largest administrative building of SOCAR outside the borders of Azerbaijan. The Georgian representation of the SOCAR Energy Georgia, Ltd and other daughter companies are placed in the building.
