1. 2021 Resource Governance Index: Azerbaijan (Oil and Gas)
- Author:
- Natural Resource Governance Institute
- Publication Date:
- 11-2021
- Content Type:
- Policy Brief
- Institution:
- Natural Resource Governance Institute
- Abstract:
- Azerbaijan’s oil and gas sector scored 56 points out of 100 in the 2021 Resource Governance Index (RGI), up by nine points since the 2017 RGI. The country’s ability to realize value from the sector and its overall “enabling environment” deteriorated since the last assessment, but revenue management improved by 35 points and now places in the “good” performance band. Key messages: Governance of licensing received a “failing” 11 points, due to a lack of rules and disclosures in the licensing process, as well issues regarding disclosure of officials’ financial interests and identification of the beneficial owners of companies involved in the sector. The governance of local impacts received a “failing” score, with issues both in terms of the laws and disclosures of environmental and social impact assessments and environmental mitigation plans. SOCAR, the state-owned oil producer, scored in the lower end of the “satisfactory” performance band, with commodity sales rules and disclosures especially problematic. The implementation of fiscal rules and their monitoring boosted the national budgeting subcomponent score by 37 points since the 2017 RGI. SOFAZ, the country’s sovereign wealth fund, received a “good” score due to improvements in both the legal framework and disclosures.
- Topic:
- Environment, Oil, Natural Resources, Governance, and Gas
- Political Geography:
- Central Asia and Azerbaijan