The European Commission has signed an accord to create an energy partnership with Azerbaijan as part of the bloc's efforts to secure its gas and oil imports, the EU executive said.

"The implementation of the memorandum of understanding will allow better integration of Azerbaijan to EU energy markets and strengthen EU energy security thanks to supplies from the Caspian Basin," Commission President José Manuel Barroso told reporters after talks with Azerbaijan President Ilham Aliyev.

Dr Barroso said the partnership would allow development of more efficient energy demand management in Azerbaijan and the exchange of technical expertise.

"I want to underline this idea of creating more security of energy supply for Europe because of supplies coming from the Caspian Basin," he added.

The EU, which relies heavily on gas and oil imports, has sought to diversify its supplies since last winter when a pricing dispute between Russia and Ukraine had the knock-on effect of briefly disrupting supplies to Europe.

Oil generates around half of Azerbaijan's gross domestic product (GDP), forecast at about $25 billion in 2007, but it is expected to dry up between 2020 and 2030.

Mr Aliyev said earlier this year he wanted to bring forward the first gas supplies to Europe from the huge Shakh-Deniz field in the Caspian Sea.

Shakh-Deniz is estimated to contain one trillion cubic metres of gas. Output from its first phase is expected to reach a peak of 8.3-8.5 billion cubic metres a year.

Dr Barroso said he also raised the EU's concerns over democracy and human rights in Azerbaijan during his talks with Aliyev.

The Council of Europe rights watchdog said this month that the country's conduct on human rights was getting worse, with foreign radio stations under threat of closure and an opposition party facing eviction from its headquarters.