Alexey Miller, Chairman of the Gazprom Management Committee took part in the extended meeting with Ilkham Aliev, President of Azerbaijan in Baku today as part of the working visit of Dmitry Medvedev, the Russian Federation President.

The meeting emphasized that cooperation between Russia and Azerbaijan in the oil and gas sector has a long history while a common border and the existing infrastructure create a favorable environment for further interaction in the energy sector.

Russia and Azerbaijan agreed upon the arrangement of natural gas swap (exchange) transactions and the initiation of commercial talks on Azerbaijani gas purchase by Gazprom on a long-term contract basis.

Background:

Azerbaijan holds up to 1.5 tcm of proven natural gas reserves including the Shakh-Deniz field located in the Azerbaijani offshore sector of the Caspian Sea with recoverable reserves reaching nearly 1.3 tcm of natural gas.

Gas consumption in Azerbaijan accounts for 10-11 bcmpa.