Azerkontrakt shut down, SOCAR to trade gas on Azerbaijani domestic market

BAKU. Oct 17 (Interfax) - Azerbaijani President Ilham Aliyev has ordered the shutdown of the Azerkontrakt state contract corporation and resolution of issues arising from the decision.

The corresponding presidential order was published on the presidential website on Thursday.

Azerkontrakt will be shut down from December 1, 2024, it said.

Azerkontrakt's rights and obligations under contracts for the purchase of natural gas from gas producers on the Azerbaijani domestic market, its shipping and arrangements for its sale to Azerbaijani distributors and consumers, as well as assets obtained from activities in this area, including cash, are transferred to the State Oil Company of Azerbaijan (SOCAR). Aliyev ordered taking measures to ensure their transfer to institutions incorporated in SOCAR by December 1, 2024.

As reported, OJSC State Contract Corporation Azerkontrakt was established by the Azerbaijani presidential decree of December 17, 1996 on the grounds of the former Ministry of Material Resources and the Trade Ministry.

Azerkontrakt started to fulfill one of SOCAR's functions, that is, wholesale purchase and sale of natural gas, from 2021. Azerkontrakt has been operating as an intermediary between gas production and distribution companies and energy producers since 2021.