Human Rights and Transparent Grievance Management: The Way We Operate in Azerbaijan

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Abstract The Government of Azerbaijan has signed a production sharing agreement (known as the "Contract of the Century" in Azerbaijan) with a consortium of international oil companies in 1994, which marked the beginning of the new development in the country's oil and gas history.1 This contract has signified a key milestone in transforming the economy of the country and hike in standards of living of Azerbaijani citizens following the collapse of the Soviet Union. This contract has produced one of the world's largest pipeline project taking Caspian energy resources across Azerbaijan, Georgia and Turkey to the world market. Called Baku-Tbilisi-Ceyhan (BTC) pipeline, this mega-infrastructure project operated by BP has delivered the best practice in the industry with key focus on environmental and social impact assessment and comprehensive mitigation measures with focus on building positive relationships with communities and people affected by the project activities. BP, as the responsible operator of the major oil and gas projects in the country, has demonstrated a special emphasis to community safety, community liaison and local stakeholder relations management.2 In furtherance of the goal of promoting and establishing the BTC project, the Governments of Azerbaijan, Georgia and Turkey have entered into an Inter-Governmental Agreement (IGA) and associated Host Government Agreement (HGA), which set out the legal and fiscal regime under which The Baku-Tbilisi-Ceyhan Pipeline Company (BTC Co.) may construct and operate the BTC project in each country. As a supplement to each HGA, BTC Co. signed with Governments of Azerbaijan, Georgia and Turkey a joint statement, which establishes a number of additional key commitments, including a commitment to implement the BTC Project consistently with the Organization for Economic Development and Cooperation (OECD) Guidelines on Multinational Enterprises and commitment to internationally recognized human rights principles in the context of security operations around the BTC pipeline.