The oil and gas sector in Azerbaijan is one of the most important industries in the country’s economy. Managing legal issues in this field requires deep knowledge of Azerbaijan’s legislation, international energy agreements, and business practices. At ACON Consulting, we provide professional legal and consultancy services for both local and foreign companies operating in Azerbaijan’s energy market.
Azerbaijan’s Rich Oil and Gas Heritage
Azerbaijan has been a global energy hub for centuries. Historical evidence shows oil extraction since the 3rd century A.D., and today Azerbaijan continues to play a strategic role in supplying oil and gas to Europe and Asia. This sector is not only about production, but also about strong legal foundations, international partnerships, and investor-friendly regulations. At ACON, we support companies by providing legal solutions tailored to the specific needs of oil and gas stakeholders.
Legal Framework for Oil and Gas in Azerbaijan
The oil and gas industry is regulated by a detailed legal system that ensures resource management, environmental protection, and foreign investment. Our experts guide companies through this framework, making sure all operations are legally secure and compliant with both national law and international treaties.
Main Laws and Regulations
- Law on Subsoil – Governs exploration, extraction, and use of natural resources.
- Law on Use of Energy Resources – Regulates energy production and distribution.
- Special Economic Regime for Export-Oriented Oil-Gas Operations – Offers tax incentives and simplified procedures for investors.
Our services include compliance reviews, investment strategy planning, and risk management for all oil and gas projects.
Licensing and Regulatory Compliance
In Azerbaijan, oil and gas operations require various permits and licenses. Subsoil resources belong to the state, and any commercial activity must be authorized. We help our clients in obtaining licenses, permits, and ensuring compliance with environmental and safety requirements.
- Licensing for geological surveys and exploration
- Permits for drilling, extraction, and production
- Compliance with safety and environmental laws
- Representation before regulatory authorities
Special Economic Regime for Oil and Gas Investors
To attract more investors, Azerbaijan applies a Special Economic Regime for export-oriented oil and gas operations. This framework provides tax exemptions, simplified customs rules, and reduced bureaucracy. Foreign companies benefit from lower costs and faster entry into the market.
Product Sharing Agreements (PSAs)
Product Sharing Agreements (PSAs) are the foundation of Azerbaijan’s oil and gas partnerships. They allow foreign companies to operate under a transparent and secure system. ACON has vast experience in PSA negotiations and implementation, ensuring fair benefits for all parties.
- Contract drafting and legal consultation
- Negotiation support for new and amended PSAs
- Advising on tax benefits and compliance
- Risk assessment and dispute resolution
Comprehensive Legal and Business Services
Our law firm provides a full range of legal services for the oil and gas industry, including:
- Tax and Accounting – Optimizing tax structures under PSAs
- Customs and Import Regulations – Smooth transportation of equipment and products
- Employment and Immigration – Assisting in hiring and relocation of staff
- Risk Management – Avoiding legal disputes through preventive strategies
- Contract Negotiation and Dispute Resolution – Protecting business interests
Why Choose ACON Consulting?
- Expertise in PSA Agreements – Decades of legal experience in the energy sector
- Strong Knowledge of Local and International Laws
- Proven Track Record – Support for major oil and gas projects in Azerbaijan
- Tax and Financial Expertise – Helping clients increase profitability
- Incorporation Services – Setting up local entities for foreign investors
Conclusion
Azerbaijan’s oil and gas industry offers enormous opportunities, but success requires proper legal guidance. At ACON Consulting, we provide reliable, practical, and business-oriented legal services. Our team ensures compliance, reduces risks, and helps clients focus on their core business goals.
Contact us today for professional support in oil and gas law in Azerbaijan.
