How Socar President Rovnag Abdullayev and his relatives Adam Aliyev, Anar Alizade created Illegal oil business



Under the contract, 80% of the profits from deposits left Bahar Enerji Limited, and 20% most of SOCAR
Baku met early 2014. protests. In the known once as the oil capital city of the world, this time it began to protest oil. And to be precise, the 200 oil workers were protesting against layoffs.

It is about the dismissed employees of oil fields Bahar – «Bahar» and Qum-Dəniz – «Gum-Deniz“. One of the lost jobs – Etibar Kovserov, committed suicide six months after termination of employment. His wife Sevinj Kovserova said that the worst thing to her husband acted that he was fired after 30 years of work, and to protect their rights, he was powerless:

„After his discharge, he stayed at home for days, I did not go anywhere. On the day when it happened, it took me. When I got home and saw … still stands in front of me. “

The reason for dismissal Etibar Kovserova specified the same as that of the other: the completion of the employment contract. The new contract with have worked in these fields Kovserovym 30 years was signed in 2010, when the „Bahar“ and „Gum-Dyaniz“ were handed over to foreign companies.

shrouded in mystery

The above-mentioned fields were put into operation in 1955 and 1969 and until 2009 were subordinated to SOCAR – SOCAR.

In December 2009, in accordance with the decree of Azerbaijani President Ilham Aliyev, SOCAR and Bahar Enerji Limited signed an agreement on exploration, recovery and operation, as well as the distribution of units produced unit of production, which includes deposits „Bahar“ and „Gum Deniz“.

According to the agreement, 80 percent of the profits from these mestorozhdeniyay left Bahar Enerji Limited, and 20 percent of the SOCAR.

During a brief discussion of the treaty in parliament of Azerbaijan, was made a lot of questions about the lack of protection of Azerbaijan’s interests against possible damage, the person who is hiding under the name of the foreign company and the fate of employees. However, these questions were not answered, and the document was quickly approved by the Parliament. Thus, the share fixed in the contract company Bahar Enerji Limited exceeded the shares of companies previously signed 5 similar contracts in Azerbaijan.

Project to Combat Organized Crime (Organized Crime and Corruption Reporting Project – OCCRP) AzadlygRadiosu and with the participation of the International Consortium of Investigative Journalists, revealed the facts hidden behind the company Bahar Energy Limited.

Documents The study found that two people with ties to the State Oil Company – SOCAR, which is engaged in the sale of state-owned oil on behalf of the state, taking advantage of their connections, have signed an agreement. Who proved to be the beneficiary of this agreement, for a long time remained a mystery.

Behind this veil of mystery lurking in-law names the current president of SOCAR, SOCAR, Rovnag Abdullayev – Adam Aliyev and head of the Research Institute of oil and gas projects – Fakhraddin Ismailov. They are among the first directors of the company «Rafi Oil», which is a co-founder of the company, Bahar Energy.

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Anar Aliyev, ADAM Aliyev, Fakhraddin Ismailov

The event, which took place with Bahar Energy, may be able to shed light on the unknown public tranches that have been implemented over the last 10 years in these 2 fields.

A series of documents that are found OCCRP and AzadlygRadiosu shows that Adam Aliyev and Fakhraddin Ismailov in 2008 sold his company Anar Aliyev, whose name is associated with 50 companies, and raises many questions both in Azerbaijan and in the world. Anar Aliyev is also a partner in business Fakhraddin Ismailov. But more on that later…

Фахраддин Исмаилов (слева)
Let’s go back to the emergence of Bahar Energy in Azerbaijan.

When the Parliament of Azerbaijan in 2010, ratified the agreement, it provided an opportunity to Bahar Energy to receive 80% of profits. While less than 50% in other contracts signed by SOCAR profit private companies.

Several opposition MPs have failed to prevent the ratification of the treaty, which gave precedence profit Bahar Energy, but tried to find out who profit from this contract.

OIL FOR HALF A MILLION DOLLARS A DAY

At a hearing in the parliament in April 2010, MP Panah Huseyn asked about who is behind the company from the UAE. The planned capacity of wells in which the contract had been transferred to the operation of Bahar Energy, was 4629 barrels of oil daily. At today’s prices that means about half a million dollars every day.

The company Bahar Energy Limited was established in the United Arab Emirates, October 21, 2009, just two months before the signing of the Order of the President of the company.

When to create a company co-founders were RAFI OIL, Baghlan Group and Greenfields Petroleum Corporation. The share of each company accounted for 33.3%.

Baghlan Group owner Hafiz Mammadov is known as a business person engaged in the transportation business. It is also known for his interest in the business of football and

football clubs, including, he is one of the advertising sponsors of the club Atletico Madrid. In close circles he is known by the nickname „Hafka“. Hafiz Mammadov sponsored the appearance of the inscription «Azerbaijan: Land of fire» – «Azerbaijan: The country of fire“ on T-shirts the players of the club, „Atletico Madrid“, which players are still.

Hafiz Mammadov (right), Minister of Transport Ziya Mammadov (left)
Хафиз Мамедов (справа), министр транспорта Зия Мамедов (слева)
Hafiz Mammadov wanted to buy English football club «Sheffield Wednesday», although he did not succeed. However, the French football club «Lens» he still bought, albeit with some difficulty. So, Mammadov has not paid the agreed time deposit of $ 18 million to the budget of the club and thus violated the period established by the French Football Federation. Later he explained this by the fact that banks do not work weekends.

Local media write that business Hafiz Mammadov develops not so good. The articles of deposits „Bahar“ and „Gum Deniz“ is also largely inclined his name. However, the names of the other companions remain in secret.

Another co-founder of Bahar Energy is Greenfields Petroleum Corporation.
Greenfields Petroleum Company, with headquarters in Houston, Texas, is engaged in the development of oil and gas fields. However, the company is registered in the Cayman Islands, which have long been considered to be a tax haven.

Greenfields stated that in the first quarter of 2014 it earned 896 million. Dollars, while losing 3.8 million. Dollars for Bahar Energy. The owner «Baghlan» Group Hafiz Mammadov now apparently faced with even greater challenges than ever wanted to buy football clubs.

July 23 Greenfields Petroleum announced that it has issued «Baghlan» loan of $ 16.5 million. dollars, as from 1 January 2014 the company does not comply with the mandatory payments on the investment partners. Greenfields recognized that «Baghlan» will have to pay additional amounts for the accumulated debts.

Finally, when creating Bahar Energy Limited, the third co-founder of the company has been RAFI OIL FZE. This company has a sophisticated and previously hidden connections with persons close to the SOCAR official persons. To uncover the secrets of RAFI, you must start at the beginning – with the creation of this company.

KEY OF THE MYSTERIES: RAFI OIL (FZE) and RAFI OIL (BVİ)

When RAFI OIL (FZE) registration in 2004 in the UAE, the owners of the names were not marked. However, among the investigated later by the International Consortium of Journalists documents there is one, which draws attention to the correspondence in the establishment of the company. In this correspondence is discussed that the name Fakhraddin Ismailov should not be opened under any circumstances.

During the investigation it became known that created and registered two companies ofthe same name RAFI OIL – one of them in the UAE – RAFI OIL (FZE), and the other in the British Virgin Islands RAFI OIL (BVI). This information also helps to reveal the secret RAFI OIL. According to documents we can determine all the persons who are behind the scheme set up by the complex and hidden from view by the company. One of the documents and said that the company RAFI OIL (BVI) is completely controlled by RAFI OIL (FZE).

This means that the company established in the United Arab Emirates, the names of the owners of which were not disclosed, owned by the same company established in the British Virgin Islands. The paper noted that the owners of the RAFI OIL (BVI) are the two people and listed their names: the official representative of SOCAR Fakhraddin Ismailov, tests and SOCAR president Adam Aliev.

How were the hidden names?

Names Fakhraddin Ismailov and Adam Aliyev did not appear in the discussion of the contract with Bahar Energy. When to submit the contract to Parliament MP Valeh Alakbarov answered questions about transparency, it is limited by the fact that the presence of Rovnag Abdullayev said at a meeting in the hall of the parliament on behalf of SOCAR and described the benefits of the contract for the Azerbaijani government.

Perhaps, at the time of discussions, it was difficult to understand what the deputy was trying to attract attention, and then to pass by, but in the light of this investigation, many nuances become apparent upon reading the transcript. It is clearly seen and the way the deputies climbed out of their way to keep secret the names, and the like have tried to circumvent questions about the transparency of party, and more.

From a transcript is available here.

History RAFI OIL does not end there. In 2008, Adam Aliyev, Fakhraddin Ismailov and serves all of the shares of the company RAFI OIL FZE Union Grand Energy PTE, registered in Singapore.

In 2012 – just two years after the entry into force of the contract, Union Grand sells 1/3 of its affiliated Bahar Energy stake for $ 150 million Baglan Group. Thus, 2/3 of the shares of Bahar Energy currently owns Baglan Group.

And who is behind the Union Grand Energy?

History Union Grand Energy. In order to see the TimeLine, click the image below.

HISTORY OF UNION GRAND ENERGY

The former has a registered owner of Union Grand Energy is Anar Aliyev. His name is called the organization „Global Witness» (Global Witness) in a report titled „Anonymous Azerbaijan» (Azerbaijan Anonymous) on Azerbaijan, as a person who is associated with dozens of companies that do not have the history of businessactivities, and in spite of this, cooperating with SOCAR. After the publication of the report Anar Aliyev acted with a refutation of claims that is a frontman for the powers that be in Azerbaijan. He denied and a message that is a cousin Rovnag Abdullayev. Since then, applications have not heard from him.

Aliyev’s statements did not satisfy authorities that control the industry.

Adam Aliyev and Fakhraddin Ismailov sold RAFI OIL shortly before the signing of the contract for the fields Bahar and Qum Dəniz. However, all contracts, including the contract on the exploitation of oil block, which includes oilfield Suraxani, RAFI OIL signed back in 2005, when the company is still owned by his father in law Rovnag Abdullayev.

There RAFİ share is 75%, while the share of SOCAR 25%.

Business Adam Aliyev and Fakhraddin Ismayilov does not end there.

Here we are talking not only about sales. It is also about partnership. So, Fakhraddin Ismailov and Anar Aliyev are directors of a company which is registered in the Virgin Islands. They run the company Middle East Geophysics Corporation. The founder of the Middle East Geophysics Corporation, is the Gulf Geophysics FZC. A registered company in the United Arab Emirates Anar Aliyev. Gulf Geophysics FZC has a 49 percent stake in the company SOCAR GULF, created together with SOCAR. SOCAR GULF is the executor of many projects related to the sale of oil and gas, transportation and distribution of energy.

Fakhraddin Ismayilov is also the director of the company RELZ Factor LLC, which has a share of 20% in SOCAR-RODAN. Ismailov and Adam Aliyev presented the company RAFİ Transportatiton.

Фахраддин Исмаилов (слева)

In 2004, between the oil field Kurovdag (operating company Shirvan Oil), located 120 kilometers from Baku and Caspian Energy Group signed a contract. In April 2005, the Parliament of Azerbaijan ratified the treaty.

OPINION ABOUT THIS SOCAR

The head of the SOCAR Investment Department’s head Vagif Aliyev says that in the registration of private business in the areas of „tax havens“ there is nothing illegal. End quote.

And indeed, „tax haven“ and is so named precisely because it created a haven for the registration of companies. Businessmen are not obliged to provide any financial or any other reports, and in some cases completely exempt from tax. It is for this reason that these areas are registered companies who trade in drugs and arms, as well as companies that are prone to corruption. „Tax haven“ is also ideal for money laundering.

To the question „Why is the State Oil Company signed contracts mainly with companies registered in offshore zones?“ Vagif Aliyev cited the example of Bahar Energy Limited, and said that it is not contrary to the laws.

why companies are presented as foreign, although owned by the Azerbaijanis?

– Azerbaijanis are not prohibited from registering companies abroad.

– And if that person is an official employee of SOCAR. For example, Fakhraddin Ismailov?

– As far as I know, Fakhraddin Ismailov is not associated with these companies.

Returning to the issue of dismissal of employees, Vagif Aliyev said that this is a normal process:

„We demand that the company used the services of local personnel. However, this kind of business requires a dynamic relationship. There may be a reduction of staff, as well as the opening of additional jobs. “

EXPERT OPINION Mirvari Gahramanli

After gaining control of the two fields, Bahar Energy has eliminated the current contracts with employees and demanded the signing of new, short-term contracts. Thus arose the possibility of reviewing and pensions after the end of the contract. Despite the fact that the laws oblige Azerbaijan to issue pension under such conditions, and workers complained respectively Azerbaijani law, the government, these laws do not apply.

According to the head of the Committee to Protect Oil Workers Rights Mirvari Gahramanli, Bahar Energy start reducing staff positions since 2011:

„Most of the laid-off employees are intimidated. Due to the lack of faith in the independence of the judiciary, few people went to court. Seek justice in court is actually very difficult, Bahar Energy Limited is under the auspices of SOCAR. “

Were laid off Etibar Kovserov, who instead received a pension only 6 monthly payments, she has committed suicide in June. His wife and two children are struggling to survive. Mirvari Gahramanli said that the suicide may not be the last. The expert said that the Azerbaijani government does not protect its citizens, and offshore companies:

„Apparently, this is so special people that their income is more important than the lives of the oilmen“

The corruption materials of the  OCCRP were used on the article