This Press release is jointly prepared by Committee on EITI, Extractive Industry Companies and Non-Governmental Organizations (NGOs) Coalition for Increasing Transparency in the Extractive Industries of Azerbaijan.

The Committee on Extractive Industries Transparency Initiative ("EITI") established by the government of Azerbaijan to implement its obligations taken at the conference on EITI held in June 2003 in London, today announced the publication ofthe Government’s first EITI reports (2003 annual assertion and 2004 first 6-months assertion) audited by Deloitte & Touche, the independent Aggregator. The published documents also include the Aggregator’s opinion based on individual submissions of independent extractive industry companies participating in the EITI process.

This marks the first ever aggregated government transparency report in the world and implementation of the Azerbaijan Government’s commitment to EITI.

The publication of Azerbaijan’s EITI reports follows the signing of a Memorandum of Understanding ("MOU") on November 24, 2004 between the Government of Azerbaijan, foreign and local extractive industry companies and a coalition of some 32 local Non-Governmental Organisations ("NGO’s") for Increasing Transparency in Extractive Industries to implement EITI in Azerbaijan. The MOU set out a clear and independent process for the implementation of EITI in Azerbaijan and since its signing has served as the framework for implementation efforts by all parties.

The full report as well as the Aggregator’s opinion on the document has already been disclosed on theState Oil Fund (SOFAZ)and theEITI Secretariat of the UK Department for International Development (DFID)andthe Non-Governmental Organizations (NGOs) Coalition for Increasing Transparency in the Extractive Industries of the Republic of Azerbaijan

Samir Sharifov, Chairman of the Committee on EITI, said: "Publication of the first report on the Government revenues from the extractive sector that was prepared by a reputable international firm on the basis of examination of government’s assertion and extractive sector companies’ individual reports has become another clear demonstration of Azerbaijan’s full support to EITI process not in words but in deeds. It has evidenced continued commitment of the authorities of Azerbaijan to transparent management of revenues accruing from extractive sector and to encouraging active involvement of civil society in this process".

Speaking on behalf of local extractive industry companies Natig Aliyev, President of SOCAR, said "Thanks to successful realization of new oil strategy, SOCAR has obtained the recognition as one of the leading oil producing companies in the world and reliable business partner in joint projects. Our next task is to prove ourselves as a company which conducts its business in compliance with internationally accepted standards of reporting and transparency of financial and commercial operations.

I believe that in our country we have already taken very important steps in this direction and in future in cooperation with the NGOs we will do our best to achieve our goal".

Speaking on behalf of foreign oil companies David Woodward, Associate President of BP, said: ''We welcome the publication of the first reports for Azerbaijan which is a world first for the broader implementation of the UK Government’s EITI initiative. We are satisfied with the independent process implemented by the Aggregator. As these are the first reports of these kind in the world there will, I'm sure, be ways in which we can improve the process further, but this should not detract from the importance of what has been achieved by the Azerbaijan Government working effectively and efficiently with oil companies and civil society''.

Sevgim Rahmanov speaking on behalf of the NGO coalition stated "A significant step forward has been made towards promoting transparency in extractive industries in Azerbaijan by publication of the EITI first report. We look forward to working with both the Government and extractive sector companies for further improvements in the process".

The Committee on the Extractive Industries Transparency Initiative of the Republic of Azerbaijan ( Independent Accountants Report) For the year ended 31 December 2003»

Report of the Government of the Republic of Azerbaijan (host government) about aggregated receipts from the extractive industries Reporting period January- June 2004 (semi-annual)

The Committee on the Extractive Industries Transparency Initiative of the Republic of Azerbaijan ( Independent Accountants Report) For the six months ended 30 June 2004»

Report of the Government of the Republic of Azerbaijan (host government) about aggregated receipts from the extractive industries Reporting period 2003 (annual)