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Trading and distribution

Regulation

How are oil and gas resources traded in your jurisdiction and what (if any) regulations and procedures apply to oil and gas sales, distribution and marketing activities, both nationally and internationally?

Previously, the sale of oil and gas products required a licence from the Ministry of Energy. However, this was abolished by the Presidential Decree on Licensing (713/2015).

Offshore production sharing agreement partners normally export their sales independently, while smaller producers tend to utilise the marketing department of the State Oil Company of the Republic of Azerbaijan. Such arrangements are governed by commercial agreements.

Is oil and gas pricing regulated in your jurisdiction?

Yes. Pursuant to the Regulation on Prices of Crude Oil and Oil Products (Resolution 20/2003), wholesale and retail prices of oil products apply at rates determined by this resolution. This applies to domestic prices only – export prices are not regulated specifically.

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