Azerbaijan, Indonesia sign MoU on energy cooperation

By Ayya Lmahamad

A memorandum of understanding on energy cooperation has been signed between Azerbaijan’s Energy Ministry and Indonesia’s Energy and Mineral Resources Energy.

According to the memorandum, Azerbaijan and Indonesia will cooperate in the field of oil and gas upstream and downstream, as well as in the field of renewable energy.

The document also covers the implementation of joint projects on scientific and technical cooperation, training and development programs, promotion of investments in the energy sector, holding joint seminars, conferences, and energy forums.

Moreover, it also envisages to create a joint working group to discuss and implemented issues arising from the memorandum.

Speaking about the role of energy cooperation in the development of bilateral relations between the two countries, Azerbaijan’s Energy Minister Parviz Shahbazov noted that SOCAR has been supplying crude oil to Indonesia since 2007.

During these years SOCAR has supplied more than 25 million tons of crude oil to Indonesia, including around 24 million tons of Azeri Light.

The minister added that the energy cooperation between Azerbaijan and Indonesia has a big potential for further development.

“The target to increase the share of renewable energy in the installed power capacity by about 1,500 MW to 30 percent, the measures taken to attract foreign investors, in particular, the plans to transform the liberated areas into a “green energy zone” create great opportunities for the development of energy cooperation,” Shahbazov stated.

He emphasized that the signed document includes cooperation in the field of renewable energy sources and the diversification of cooperation in this sector.

“Using this opportunity, I invite public and private sector stakeholders, potential investors from Indonesia for cooperation in the field of "green energy",” he said.

In turn, Indonesia’s Energy and Mineral Resources Minister Arifin Tasrif stressed that the signing of the memorandum marks the new level of cooperation on the development of energy between Indonesia and Azerbaijan.

“The global pandemic situation followed by economic slowdown has given us the real challenges, yet forced us to push aside barriers with some innovative and out-of-the-box plans and strategies. In a challenging situation such as today, strengthening international collaboration is inevitable, including in the energy sector,” he said.

The minister also expressed his hopes that energy cooperation between Indonesia and Azerbaijan will develop to a greater height and provide mutual benefits for both countries.

It should be noted that the trade turnover between Azerbaijan and Indonesia amounted to $30.7 million in 2020. In addition, trade turnover between the two countries amounted to $15.6 million in the first quarter of 2021.