The parties to the Azeri-Chirag-Gunashli (ACG) Production Sharing Agreement are: BP (operator - 34.1%), Unocal (10.3%), SOCAR (10%), INPEX (10.,0%), Statoil (8,6%), ExxonMobil (8%), TPAO (6.8%), Devon (5.6%), Itochu (3.9%), Amerada Hess (2.7%).

The BTC Co. shareholders are: BP (30.1%); SOCAR (25.00%); Unocal (8.90%); Statoil (8.71%); TPAO (6.53%); ENI (5.00%); Total (5.00%), Itochu (3.40%); INPEX (2.50%), ConocoPhillips (2.50%) and Amerada Hess (2.36%).

The parties to the Shah Deniz Production Sharing Agreement are: BP (operator - 25.5%), Statoil (25.5%), SOCAR 10%), LUKAgip (10%), NICO (10%), Total (10%), and TPAO (9%).

The SCP Co. funding shareholders are: BP (technical operator - 25.5%), Statoil (commercial operator - 25.5%), SOCAR (10%), LUKAgip (10%), NICO (10%), Total (10%), and TPAO (9%).

The competition is part of BP’s and its partners’ Biodiversity Strategy in Azerbaijan and supports their commitment to undertaking a series of specific biodiversity initiatives in the countries and areas where we operate. This year’s competition is based on the success of the first two competitions and has the same objective, which is to make a real, measurable and positive impact on the biodiversity of the world.

The competition was announced in May, 2004 via detailed advertisements in the press. Two boards were set up for evaluation of proposals to ensure a competitive selection based on the following criteria: scientific soundness, long-term benefit, dual benefit for climate change and biodiversity, sustainability initiatives, measurable performance and success, and cost effectiveness.

The boards included a Scientific Advisory Panel comprised of Azerbaijan’s leading experts and representatives of the academic community, and an Awards Committee made of BP’s experts and management representatives.

The proposals were evaluated through a three-stage process -first, by Awards Committee for screening of all submissions, second, by the Scientific Advisory Panel for technical evaluation and then by the Awards Committee for making sure that the projects meet BP’s standards and policies.

28 proposals submitted by 22 local NGOs were entered in the competition by the June 30, 2004 deadline. The projects, which were selected at the first stage as being relevant to the theme of the Competition, underwent further evaluation, and some others were assessed as being of a social or environmental nature and as such were presented to BP’s relevant departments for further consideration.

As a result of the three-stage evalutaion process the main prize of this year’s competition has been awarded to the project submitted by Azerbaijan Bird Ecology and Protection Association and aimed at protecting wading birds species diversity of the Azerbaijan coastal line along the Caspian Sea. The value of the project is $18, 042.

The second prize has been awarded to the Society of Azerbaijan Zoologists for their proposal on study of fishes and fodder animals’ diversity in contaminated territories of the Absheron Peninsula and development of recommendations for efficient rehabilitation of their reserves. The value of this project is $5000.

This year the third prize will be shared by two organizations: Golden Beehive for their project aimed at assessing impact of bees on preservation of biodiversity of flora in the Gakh-Zakatala region, and Society and Law for the project aimed at establishing a sanctuary for flora in the Caspian Sea. The value of the projects is $1000 each.

In addition, two participants have been highly commended by the judges and have been granted an opportunity to receive business training at the Enterprise Centre. These are the Society of Azerbaijan Zoologists who submitted the project “Breeding of rare and endangered birds of the Azerbaijan nature in the aviary ” and the non-governmental organisation Karvan for their project “Analysis of ecological conditions and development of immediate measures for the conservation of rare and endangered species of ichthyofauna of the river Kur”.

In his speech at the award ceremony Roger Nunn, BP Vice-President, Reputation, said: “Biodiversity is the basis of life-supporting systems on which we all depend. It is a regrettable fact that there have been biodiversity losses in every part of the world, Azerbaijan included.

“BP, along with our partners, want to play our part in preserving biodiversity. Society increasingly expects business to accept greater responsibility in the area of environmental protection and we are happy to do this.

“We intend to participate by supporting local groups through direct funding of projects that will have a measurable effect on our understanding of the impact of human activities on biodiversity, and of the opportunities we can identify to re-establish biodiversity in parts of Azerbaijan.

“BP and our partners have already contributed in many ways to the protection and enhancement of local biodiversity. We have supported several important biodiversity projects. These include a tortoise breeding project, a study of fish off the coast of Sangachal, a study of plants and mammals along the existing and planned pipeline routes, and a joint project with the Caspian Environmental Programme on the development of a biodiversity convention.

“BP and our partners in the Baku-Tbilisi-Ceyhan pipeline project have recently started a new pilot project in Azerbaijan on the rehabilitation and protection of Tugay forests. Tugay is a Turkish word and means an area of forest on the bank of river. In Azerbaijan such forests are located mainly in the Kura-Araz lowland, around the Kura and Araz rivers. Tugay forests have a positive impact the climate of surrounding areas and promote agricultural production. They contribute to the richness of the flora and fauna of the area, and help to ensure their protection, through soil protection and stabilization. Due to a number of factors, principally anthropogenic – ie the impact made by people – Tugai forests currently occupy about 18,000 hectares – less than 10% of the area they previously covered.

Taking into account importance of these forests for Azerbaijan’s environment – and our understanding of it – they are clearly on any list of priorities for the preservation of biodiversity Azerbaijan. That is why BP and our BTC partners have decided to conduct a pilot project on rehabilitation and protection of these unique forests. In fact we have already completed the preparation phase of the project and plan soon to start implementation of in the Agstafa region of Azerbaijan.”

BP environmental policy goal is ”no damage to the environment”. Biodiversity occupies an important place in the Environmental Strategy of the BP Group. As BP Chief Executive Officer Lord John Browne states: “We can have a real, measurable and positive impact on the biodiversity of the world. That is a high aspiration - but like our other aspirations we’re determined to show that we can deliver.

To date BP has supported in Azerbaijan several important biodiversity initiatives. These include a tortoise breeding project, a study of fish off the coast of Sangachal, a study of plants and mammals along the existing and planned pipeline routes, and a joint project with the Caspian Environmental Programme on the development of a biodiversity convention. To ensure the widest possible use, BP has shared its environmental and biodiversity data with Caspian littoral countries through the Caspian Environmental Programme. BP also supports a project aimed at rehabilitation of Tugay Forests in Azerbaijan. This project is being implemented in collaboration with the Ministry of Ecology and Natural Resources and Azerbaijan’s experts.

The First Biodiversity Competition award was presented in 2002 to the Karvan NGO for the pilot project to plant 3500 trees near the Sangachal terminal. The project was very successful and today hundreds of trees can be seen growing high above the ground around the terminal, including species like Eldar Pine, Oleaster and Olender.

Last year the main prize of the Second Biodiversity Competition was awarded to the project submitted by Azerbaijan Demographers Association and aimed at restoring the sturgeon stock and protecting its biological diversity. The project has made very good progress greatly contributing to protection of Azerbaijan’s fish reserves.

In addition, we have conducted several biodiversity awareness projects which focus specifically on the awareness and education of children. As an integral part of this programme, we published a series of books and posters on biodiversity, which were distributed to schoolchildren and universities – not only in Azerbaijan, but in other Caspian countries as well.