Azerbaijan’s hydrocarbon sector presents opportunities for U.S. companies, particularly service providers. The Azerbaijani Government and BP have extended the Production Sharing Agreement (PSA) for the Azeri-Chirag-Gunashli group of oil fields in the Caspian Sea, establishing the base for future exploration and investment in the country’s largest oil development. Azerbaijan is also seeking to diversify its economy by targeting the agriculture, ICT, transportation, and tourism sectors. U.S. suppliers of agricultural equipment, fertilizers, seeds, pesticides, and animal genetics benefit from government-funded agricultural subsidies. U.S. producers of fertilizers and pesticides, however, have limited market share, despite demand for high-quality products as the government seeks to increase yields.
The “Alat” Free Economic Zone located next to Port of Baku offers companies tax and customs exemptions as well as a simplified permit process to encourage value-added production in Azerbaijan.
See the Leading Sectors for U.S. Exports & Investments section for descriptions of opportunities in various sectors, including major infrastructure projects, significant government procurement activities, and business opportunities.