(U) REQUEST FOR INFORMATION ON STATE OIL COMPANY

S E C R E T STATE 131660 NOFORN SIPDIS E.O. 12958: DECL: 12/29/2034 TAGS: PINR ENRG PGOV AJ SUBJECT: (U) REQUEST FOR INFORMATION ON STATE OIL COMPANY OF AZERBAIJAN (SOCAR) (C-RE9-02372) REF: 3/EN/82-09 Classified By: ELISSA G. PITTERLE, DIRECTOR, INR/OPS. REASON: 1.4(C). ¶1. (S/NF) WASHINGTON ANALYSTS ARE VERY INTERESTED IN INFORMATION ON THE STATE OIL COMPANY OF AZERBAIJAN (SOCAR) AND PRESIDENT ALIYEV'S GOALS FOR AZERI ENERGY RESOURCES. WE WOULD APPRECIATE POST,S INSIGHTS INTO SENIOR SOCAR OFFICIALS AND PRESIDENT ILHAM ALIYEV'S ROLE IN DIRECTING AZERBAIJAN'S OIL RESOURCES AND ENERGY POLICY, AS TIME AND RESOURCES PERMIT. THE TOPICS AND QUESTIONS BELOW ARE DESIGNED TO GUIDE POST,S RESPONSE. MANY THANKS, AND REGARDS FROM WASHINGTON. ¶2. (U) INDIVIDUALS OF PARTICULAR INTEREST INCLUDE: ROVNAG ABDULLAYEV, HEAD OF STATE OIL COMPANY OF AZERBAIJAN (SOCAR) ELSHAD NASIROV, SOCAR VICE PRESIDENT FOR MARKETING BAYLAR EYYUBOV, CHIEF OF PRESIDENTIAL SECURITY NATIQ ALIYEV, MINISTER OF INDUSTRY AND ENERGY SHAHIN MUSTAFAYEV, MINISTER OF ECONOMIC DEVELOPMENT SAMIR SHARIFOV, MINISTRY OF FINANCE (U) 1) (C) HOW DO PRESIDENT ALIYEV AND OTHER KEY AZERI DECISIONMAKERS VIEW SOCAR'S ROLE AS A STATE ENTERPRISE AND POTENTIAL VEHICLE FOR BAKU'S ASPIRATIONS TO BE A REGIONAL ENERGY POWER? 2) (C) IN WHAT WAYS ARE SOCAR'S TOP MANAGERS GIVEN AUTONOMY TO SET THE COMPANY'S REGIONAL STRATEGY? WHO DETERMINES THE REGIONAL STRATEGY? WHO AUTHORIZED THE 2009 DEAL WITH GAZPROM? 3) (C) WHAT IS THE NATURE OF SOCAR'S NETWORK OF INVESTMENTS AND PARTNERSHIPS? WHAT IS THE ROLE, PURPOSE AND STRUCTURE OF THE SOCAR TRADING COMPANY? WHAT ARE SOCAR'S PLANS FOR REGIONAL INVESTMENT AND OPERATIONS? ARE THERE INDICATIONS THAT SOCAR IS CONSIDERING EXPANDING AND/OR DIVERSIFYING INVESTMENTS IN GEORGIA, TURKEY, AND ELSEWHERE IN THE REGION, ESPECIALLY EUROPE AND THE MIDDLE EAST? 4) (C) HOW COMPETENT IS SOCAR PRESIDENT ABDULLAYEV AT MANAGING SOCAR'S BUSINESS? WHAT IS HIS RELATIONSHIP WITH PRESIDENT ALIYEV, AND WHAT ARE ALIYEV'S VIEWS OF ABDULLAYEV? 5) (C) WHAT IS BAYLAR EYYUBOV'S ROLE AT SOCAR? 6) (C) WHO ARE THE OTHER KEY DECISIONMAKERS AT SOCAR AND WHAT ARE THEIR RELATIONSHIPS WITH POLITICAL ELITES? 7) (C) TO WHAT EXTENT DOES SOCAR HAVE A BUSINESS RELATIONSHIP WITH IRANIAN COMPANIES? WHAT IS THE FREQUENCY AND NATURE OF SOCAR'S INTERACTIONS WITH IRANIAN INTERESTS? 8) (C) WHAT IS PRESIDENT ALIYEV'S ROLE AT SOCAR AND WHAT ARE HIS VIEWS OF SENIOR SOCAR OFFICIALS? WHO ARE OTHER SENIOR AZERBAIJANI OFFICIALS WHO CONSULT OR ADVISE PRESIDENT ALIYEV ON ENERGY MATTERS? WHAT ARE ALIYEV'S GOALS AND INTENTIONS FOR LEVERAGING AZERBAIJAN'S ENERGY RESOURCES? 9) (C) HOW WEALTHY ARE THE EXECUTIVES OF SOCAR? DO THEY SIPHON OFF THE MONEY, AND IF SO, HOW DO THEY ACCOMPLISH THIS? 10) (C) TO WHAT EXTENT ARE SENIOR SOCAR AND GOVERNMENT OFFICIALS AWARE OF AZERBAIJAN'S LACK OF TECHNICAL EXPERTISE AND CAPACITY? WHO ARE THE OFFICIALS THAT ARE WORKING ON THIS ISSUE, AND WHAT ARE THE DETAILS OF ANY PLANS TO DEVELOP CAPABILITIES? 11) (C) WHAT ARE SOCAR'S INTERACTIONS WITH THE CONSORTIUM OF ENERGY COMPANIES CONTROLLING SHAH DENIZ GAS DEVELOPMENT? HAS SOCAR TAKEN A MORE ASSERTIVE ROLE? WHO HAS BEEN BEHIND THESE DYNAMICS AND WHAT FACTORS ARE DRIVING SOCAR'S POSTURE VIS-A-VIS INTERNATIONAL OIL COMPANIES ACTIVE IN AZERBAIJAN? 12) (C) WHAT PLANS DOES SOCAR HAVE TO DEAL WITH FLUCTUATING OIL PRICES? WHAT LESSONS HAS SOCAR LEARNED FROM THE PAST YEAR IN HOW TO PLAN FOR A POSSIBLE DOWNTURN? ¶3. (U) PLEASE CITE C-RE9-02372 IN THE SUBJECT LINE OF REPORTING IN RESPONSE TO THE ABOVE QUESTIONS. CLINTON