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Brief chronology of Azerbaijan oil business (1946-nowadays)


  1. The first large-block base for the LAM system (Laboratory of Aero Methods of the Academy of Sciences of the USSR) was constructed in Gurgani oilfield area.
  2. For the first time, oil expedition of Azerbaijani Academy of Sciences began practical studyies of geological structures of Oil Rocks (Neft Dashlari) deposits. These studies resulted in discovery of huge oil reserves.
  3. Azerbaijani scientists (M.A. Dalin, P.I. Markosov, S.M. Markevich and T.V. Prokofyeva) were awarded with State Prize of III Degree for the development and inculcation of alkylation process of

benzene with olefins for the purposes of producing high octane fuels. This process was quickly implemented in several enterprises of the USSR in industrial scale.

  1. Baku engineer A. Alizade has offered the simple scheme of a control office on an establishment of the automatic control over giving of a liquid and trouble-free work of all mechanisms of the bottom-hole pumping wells. This scheme has received an industrial application on many oilfields of the USSR.


  1. Construction of metal piers under supervision of engineers B.A. Raginsky, N.S. Timofeyeva and others in the Caspian oilfield Izberg-Izberbash (Dagestan) started. The height of piers above sea level was 5- 7m, and width of fit for traffic part was 3-4m. Later, similar and more advanced piers were constructed in Gurgani-Deniz, Darwin Bankasi, Zhiloy, Neft Dashlari (Oil Rocks) and Gum Adasi fields.
  2. Yusif Mamedaliyev is appointed as Chairman of Technical Council of the Ministry of an Oil Industry of the USSR. In same year, he is elected as the President of Azerbaijani Academy of Sciences.


The installations first in the USSR on manufacture of additives to lubricant oils – the deprecators of AzNII (produced in Azerbaijan Research Institute) and additives of AzNII-4 – are placed in operation.


  1. The deepest in Europe and in the USSR oil well – well # 1308 with depth of 3800m and drilled by drilling master Aliyulla in Surakhani oil field, gave a strong gusher on October, 2.
  2. The famous Baku oil worker Alekper Suleymanov has offered a new method of struggle against sand at operation of oil wells. This method of priming liquid in hole clearance of the sand pumping wells received wide application on the oilfields of the USSR.


  1. On August, 24 for the first time in history, large-scale industrial development started in the open sea, on the Caspian field of Neft Dashlari (Oil Rocks). On November, 7 on this field, the first well was completed: oil-gusher was reseived after drilling to the depth of 1000m with daily debit of 100 tons of crude oil. Neft Dashlari (Oil Rocks) is sometimes called “Island of seven ships,” because for the creation of artificial island to drill first well, 7 ships were flooded; one of which was well-known Zoroastr, constructed in 1877 (in Sweden, Motala-city) under Ludwig Nobel’s order. (Zoroaster – the first-ever oil tanker belonged to Nobel Brothers Co.).
  2. First Research and Engineering Design Institute “Gipromorneftegas” was established. The Institute began design of hydraulic engineering constructions in the open sea.
  3. On October, 31 the Council of Ministers of the USSR passed a resolution according to which the Main Department on exploration and exploitation of offshore oilfields was founded in the Ministry of Oil Industry. New created associations “Azmorneft”, “Dagmorneft” and Astrakhan Shipyard “Red Barricades” entered the first marine central administration. Sabit Orujev, the deputy Minister of Oil Industry of the USSR, became the first head of “Glavmorneft”.
  4. Suleyman Vezirov becomes founder of oil industry in Turkmenia and heads Industrial association “Turkmenneft”. Later, in 1954 S.A. Vezirov will be the first Minister of Oil Industry of Azerbaijan SSR. (He was the only oilman to be rewarded with the 5 Orders of Lenin).
  5. For the first time in the USSR, test-industrial installation of catalytic cracking with circulating fine- dispersed catalyst was created in Baku. Already after one year, it was recommended to design the first industrial installation of catalytic cracking using crude oil as raw material, with powder-like catalyst.
  6. For the first time in the USSR, Baku engineers L.A. Mezhlumov, S.A. Orujov and Yu. A. Safarov have developed a new design of modular platform – MOS and its modernised variants: MOS-1, MOS-2 and MOS- 3 which can be used at depths of the sea of 22 m and more.
  7. The Azerbaijan engineers (M.A. Geyman, E.I. Taghiyev, S.L. Zaykin and L.A. Mezhlumov) have developed the method of well’s drilling with two bores. This high-speed method of construction of the inclined wells consisted in conducting of two bores by means of one drilling installation and one complete set of drill pipes. It was large improvement of the inclined well’s drilling technology.
  8. On April, 9 the decision of the USSR’s Council of Ministers about award of Stalin Prizes for 1948 has been published. Awards of III degree (50 thousand rubbles) have been awarded the Baku engineers, the authors of pier’s method of building of oilfields B.A. Raginsky, N.S. Timofeyev, A.O. Asan-Nuri, E.N. Krylov and N.V. Ozerov.


  1. Banka Darwina oilfield was put on stream on the island of Artyom (nowadays – Pirallahi). Till 2003, 16 million tons of oil had been produced from this oilfield.
  2. In March for radical reconstruction of an oil-well-pumping method of an oil production, elaboration and introduction of geared pumping units and insert (oil-well) pumps the big group of engineers and designers (M. Abdullayev, E. Mekhtiyev, K. Aliverdizadeh, A. Krasnobayev, Yu. Shevchuk, D. Mamedov, M. Matys, M. Movsumzadeh and A. Virnovsky) has been awarded the State award of the USSR.


  1. In February, for the first time transport of oil by tankers from Oil Rocks (Neft Dashlari) on the Caspian Sea to oil terminal at Dubendi near Baku was organized.
  2. Within the Ministry of Oil industry of USSR, a specialized central administrative board – “Glavburneft” – was created to oversee all drilling operations in the country. Eyyub Taghiyev was appointed as the First deputy Director of “Glavburneft”.
  3. In Baku, the group of experts led by A.P. Karasyov has offered and has practically carried out the drilling and then an operation simultaneously several layers by means of one well of the big diameter to which some columns were put (on various layers).
  4. The group of Azerbaijan scientists (M. Akhmedov, A. Lemberansky, A. Kudinov, V. Korchagina, L. Kupriyanova and I. Nadirova) have been awarded the State (Stalin) Prize of the USSR for creation of new kind of motor fuel.


Baku oil engineer S.I. Verdibekov has developed an original design of the pipeless deep pump which has sharply reduced the expence of the electric power on each extracted ton of an oil.


New Baku Oil Refinery was constructed and started operations. At this refinery catalytic cracking processes were further advanced. With the establishment of this refinery, Azerbaijan’s petrochemical industry intensively developed and Sumgait city (so-called – Komsomolsk na Kaspii – built in 1949) near Baku became Petrochemical Indsutry hub of Azerbaijan.


  1. Commercial development of gas-oil field of Garadagh started and triggered development of domestic natural gas industry in Azerbaijan.
  2. On May, 18-28 the Technical council of MOI of the USSR together with scientific institutions of AS of the USSR and AS of Azerb. SSR has carried out in Baku the exit session devoted to consideration of results and prospects on application of reservoir pressure maintenance’s methods and the secondary oil production on the oilfields of “Glavzapadneftedobycha” and “Glavvostokneftedobycha”, and also in associations of “Kazakhstanneft” and “Sredazneft”.


  1. Oil scientist E.I. Taghiev (1912-1967) heads group of experts sent to India for exploring industrial reserves of oil there. During 1958-1959, the expedition discovered several oil fields and industrial oil production started in India. Taghiyev was appointed as Chief Adviser to the Indian government.
  2. In lowland area near river Kura, oilfield Kyurovdag was discovered.
  3. The deepest well in the USSR was drilled in Azerbaijan: with total depth of about 5000m.
  4. At IV International Oil Congress in Rome (during 6-15 June) Academician Yusif Mamedaliyev presented two reports: on production of haloidstyrenes; and on production of detergents from crude oil.
  5. AzNIPINMASh has developed a new design of 32-mm of the well pump NGN-2 intended for operation of oil wells with depth of 2500-3000 m, and 28-mm of pump – for wells with depth to 500 m.
  6. In Azerbaijan, the 74% of extracted oil from sea (offshore) was received from sea oilfields using the method of reservoir pressures maintenance.


Several intra-republican main gas pipelines were built in Azerbaijan.


  1. Mishovdag oil and Galmaz gas-oil fields were discovered in Azerbaijan.
  2. In Azerbaijan, first in the USSR the departmental hospital of oil industry workers capable simultaneously to serve 100 patients is opened.


For the first time in the USSR, several books were published in Azerbaijan on offshore field development. These books were written by Azerbaijan scientists Israfil Guliyev and Yusif Safarov.


  1. On January, 9 the underwater pipeline Artyom (Pirallahi) Island – Absheron with total length of 5.5 km was laid.
  2. From 27 May till 03 June, in Baku, the All-Union Conference on Processing of hydrocarbons for production of synthesis of filaments and plastics took place.
  3. On June, 20 the construction of gas pipeline Garadagh – Sumgait with total length of 54 km was completed.
  4. There has arrived prospecting expedition to Surgut led by Farman Salmanov, the pioneer of near river Ob average’s oilfields.


  1. In January, All-Union scientific journal “Oil and Gas” starts to be published in Baku.
  2. Beginning of commercial development of large Zira gas-oil field.
  3. Firudin Akhundov is appointed as Director of Azerbaijan Scientific-Research Institute of Electro- Technical Industry, created in the same year. After 11 years, this institute became a leading scientific institute of the electro-technical industry of the USSR, where electrical oil equipment were designed and produced at factories in Baku, Minsk, Tallinn, Khmelnitsk and other cities of the USSR.
  4. In Beijing, a book by Academician Murtuza Naghiyev “Chemistry, technology and calculation of processes of synthesis of motor fuels” in 2 volumes was published in Chinese language. In the same year he was elected as a member of Permanent International Committee of World Oil Congresses from the USSR (he served there until 1962) and also as member of High Examination Board of the Ministry of Higher education of the USSR.
  5. At a World Exhibition (in Brussels) Soviet drilling installation for two-barreling drilling completed with all necessary equipment was presented. This installation was designed and built under the leadership of Professor Eyub Taghiyev and at the Exhibition it was awarded with Gold medal.


In Baku, for the purposes of development of offshore oilfields, a team from a design institute “Gipromorneftegas” prepared project of floating installation (first in the USSR) for exploration drilling. The floating drilling unit would later be built at “Kaspnefteflot” ship-repair yard.


  1. According to a Decree of Central Committee of CPSU from 12 February and Council of Ministers of the USSR from 14 March, Azerbaijan Industrial Institute was transformed into Azerbaijan Institute of Oil and Chemistry named after M. Azizbekov (AzINEFTEHIM). From 1991, the institute was renamed into Azerbaijan State Oil Academy.
  2. On May, in Baku has passed the First congress of the All-Russia scientific and technical society of the oil and gas industry. The chairman of the central board of a society M.V. Sidorenko has made a report “About society’s problems in connection with decisions of XXI congress of party and XII congress of trade unions” on the plenary session.
  3. On September, 1st, the Tyumen territorial geological management has organised complex geologic- prospecting expedition in Surgut. The known geologist Farman Salmanov has been appointed as a chief of this expedition.


  1. Construction of main Tran-Caucasian gas pipeline was completed; the Azerbaijani gas started to flow to capitals of neighboring republics.
  2. First Secretary of CC CPSU Nikita Khrushchev (1894-1971) visited Oil Rocks (Neft Dashlari) and solved two main problems of this legendary oilfield: a) gave instructions to transfer crews from shore to offshore installation by helicopters and b) gave orders to build 5-9 storied houses on fill dams (foundations) for oil workers of the field.

1960 – 1970

For the first time in Baku, Baku oil chemists Vahab Aliyev and Musa Rustamov successfully carried out researches into two-level catalytic cracking of black oil (fuel oil) and waxy oils, with the purpose of solving a problem of rational refining of oil and oil residue.


  1. Group of Azerbaijani scientists and engineers (V.F. Negreyev, I.P. Guliyev, A.A. Farhadov, R.G. Hajiyev, A.G. Khanlarova, S.A. Mehmandarov, M.S. Trifel, B.A. Zamanov, F.I. Samedov, M.I. Mamedov and others) were awarded with Lenin Prize for efficient development of offshore oil fields. (The Lenin Prize – the highest award in former USSR was established in 1925 and it was awarded once in 2 years on V.I. Lenin’s birthday).
  2. Monograph of oil chemist Haji Ashumov “Azerbaijan Crude Oils” was published in Baku, where the results of the research into refining characteristics of Azerbaijan crude oils were presented. After 5 years, under supervision of H.H. Ashumov fundamental work “Card Index of Azerbaijan Crude Oils” would be published.


Talented physicist from Baku, Lev Landau (1908-1968) received Nobel Prize for his research on properties of helium at very low temperatures. (L.D. Landau was born on 22 January in Balakhani settlement near Baku, in the family of David Landau, chief engineer of Rothschilds’ Caspian-Black Sea Society).


  1. In April, E.I. Taghiyev and geologist E.A. Bakirov were sent to Brazil to render assistance in creation of national oil industry. Recommendations developed by them on improvement of operations in oil fields and development of deep drilling were accepted by Brazilian experts and approved by the general Albino Silva, the President of Company “PetroBraz”.
  2. Famous scientist E.I. Taghiyev was recommended by Presidium of the USSR Academy of Sciences and approved by Permanent Council of World Oil Congress as Permanent Representative of Soviet Union in the World Oil Congress.
  3. Nikolay Baybakov (was born in Baku settlement of Sabunchi in 1911; in 1932 he graduated from Azerbaijan Oil Institute with degree in Commerce; was died in Moscow in 2008) is appointed as Chairman of State Committee of the USSR on Chemistry, and in 1964, as Chairman of State Committee for Oil Refining at State Central Planning Committee of the USSR.
  4. In August, large group of Soviet petroleum geologists under supervision of Chief of Department at “Azneft”, Aliyev M. began search for oil and gas in Cuba.


  1. Oil Production and Oil Refining Ministries of Azerbaijan SSR are established.
  2. For the first time, the process of carbamide dewaxing of fuels and the oils, offered by Institute of Petrochemical Processes named after Yusif Mamedaliyev was applied in some oil regions of the USSR,.
  3. On July, 10 in Baku, huge unit of catalytic cracking at New Baku Oil Refinery, named after V. Lenin, was constructed and commissioned.
  4. On December, 10 on the Caspian Sea, unique 18-kilometer long subsea gas pipeline from Jiloy (Chilov) island to Absheron Peninsula was laid and commissioned.


  1. Famous oil engineer Alovsat Garayev (1914-1988) was appointed as Chief of Technical and Economic Department at the Ministry of Oil Production Industry (Minnefteprom) of the USSR. From 1965 till 1976 he was a member of the Board of “Minnefteprom” of the USSR. Garayev was the second Azerbaijani, after Sabit Orujov who worked in the management of “Minnefteprom” of the USSR.
  2. For the first time in the USSR, in July at AS of Azerbaijan SSR, special Institute of Chemistry of Additives was established to study manufacturing of multifunctional additives of complex action for engine oils received from Baku oils. Famous scientist oil-chemist Ali Guliyev (1912-1989) became the first Director of this Institute. From 1993 this Institute carries his name. Later, several industrial plants would be constructed in Baku, Sumgait, Leningrad, Ufa and Kiev as per technologies developed by this Institute.
  3. Construction and commissioning of self-propelled crane vessel Koroghlu, with displacement of 10 thousand tons is completed. (This crane with lifting capability of 250 tons enables rapid and efficient installation of modular platforms in sea depth of up to 100m; this crane vessel considerably accelerated exploration and development works in deep-water areas of the Caspian Sea).


  1. In May, new gas-oil field Kyursanghi was discovered.
  2. For the first time a new technology, installations on selective purification of oils with furfural, was implemented in oil refining in Azerbaijan. In 1970, in this facility, for the first time disk condensers were used instead of extraction columns (this innovation considerably improved quality of produced engine oils).
  3. For the first time in the USSR, in Baku, scientists of “VNIPIolefingas” (from 1991 – “AzGosNIPIneftegas”) developed thermal method of influence on oil layers.
  4. On the basis of Department of High-molecular Compounds of Institute of Petrochemical Processes (IPCP) named after Mamedaliyev, Sumgait branch of the Institute of Petrochemical Processes was created. Main research direction of the new Institute was development of methods of synthesis of various surfactant species on the basis of oil hydrocarbons and their separate fractions.
  5. In August, first in the USSR floating drilling platform Apsheron, designed by Baku institute “Gipromorneftegas”, started drilling in Sangachal Deniz structure, located 8 km from shore.
  6. From September till July of 1967, oil scientist Yu. Mamedov led research work in department of oil and chemistry of Kansas University. Later, in October at Symposium of oil industry workers in Dallas (state of Texas) Mamedov was elected as member of the Society of American Oil Industry Workers.
  7. Monograph of famous petroleum geologist Fuad Samedov (1926-1969) “An oil groundwater hydrology of Absheron archipelago” was published in Baku.


  1. On January, 18 the V Congress of Scientific and Technical Society (STS) of oil and gas industry of the USSR started its work in Baku. This organization (STS) took its origins from Imperial Russian Technical Society (which was founded in 1866) and continued its predecessor’s progressive traditions.
  2. Famous oil engineer Asad Rustambekov (1911-1982), son of Fatullabey Rustambekov, was appointed as Deputy Director of “AzNIIburneft” (Azerbaijan Scientific Research Institute on oil drilling) for Central Asian region. He would play a key role in development of Soviet oil business in Azerbaijan, Bashkortostan and Central Asia.
  3. Oilfield Absheron Bank came onstream on Artem (nowadays – Pirallahi) Island.


AzINEFTEHIM’s collaborator, the talented chemist Fuad Agayev (1941-2008) has taught the oil business on French to Algerian youth in Bumerdes Oil Educational Centre. Rector of this centre Sherifee arriving in Baku (1969), has high evaluated F.H. Agayev’s teaching, during his meeting with AzINEFTEHIM’s leadership. The second Agayev’s trip to Bumerdes took place in 1978-1982.


Discovery and development of new offshore oil and gas-condensate fields started in the Azerbaijani sector of the Caspian Sea: Bahar field (1968), Sangachal-Duvanny Deniz field (1969) and Bulla Deniz (1975).


Group of scientists from AzINEFTEHIM (A.A. Abdullayev, A.D. Amirov, I.A. Nabiyev, T.M. Aliyev, A.D. Lemberansky and others) are awarded with State Prize of the USSR for creation and wide industrial application of system of computer-aided facilities in Azerbaijani oil fields.


  1. Offshore oil production reached new maximum– 12.9 million tons. (Share of offshore oil in total oil production in Azerbaijan exceeded 62 %).
  2. Valentin Shashin (1916-1977) from Baku is appointed as Minister of Oil Industry of the USSR. V.D. Shashin played huge role in successful development of West-Siberian oil industry.


  1. On March, 28 the 1st billionth ton of oil was produced from oilfields in Azerbaijan, since the beginning of industrial oil production in Azerbaijan.
  2. It was put into operation the gas pipeline of Gazakh-Astara-Iran. Three compressor stations were constructed on the route of Gazimagomed, Agdash and Gazakh. This gas transmission system was designed for the pressure of 55 atm.; and the pipeline’s diameter was 120 cm.


  1. Correspondent-member of Azerbaijani Academy of Sciences, Sabit Orujov (1912-1981) is appointed as Minister of Gas Industry of the USSR. He made invaluable contribution to development of Soviet oil and gas industry. Nowadays, the most successful students of Russian State University of Oil and Gas named after

I.M. Gubkin receive scholarships named after S.A. Orujov. The first-rate gas production union “Urengoygas- extraction” in the USSR was named by S.A. Orujov.

  1. In Sumgait, process of platforming of petrol fraction from Baku oil, which made production of benzene possible – the major raw material in petrochemical industry – was introduced at a factory for the first time.


  1. Famous engineer-technologist Shamil Jafarov (1929-1990) was appointed as General Manager of one of the first research-and-production associations in Azerbaijan – “Bakneftemash”. The Association was comprised of “OKBneftemash” and machine-building factory named after Felix Dzerzhinsky in Surakhani.
  2. On April, 16-18 in Baku the Minnefteprom of the USSR, the Central board of NTO NGP (Scientific-technical society of Oil and Gas industry) named after I.M. Gubkin and Scientific- technical council of Minneftehimmash held the All-Union meeting on problems of the further perfection of techniques and technology of an oil production. 270 experts have taken part in it, 17 reports and 17 messages have been heard and discussed.


An outstanding scientist, Academician of Azerbaijani Academy of Sciences Azad Mirzajanzadeh (1928- 2006) was awarded with the Prize named after I.M. Gubkin from Presidium of STS of Oil Industry of USSR for his work “Application of non-Newtonian systems in oil production”. In 5 years time A.Kh. Mirzajanzadeh would be the winner of State Prize of Azerbaijan SSR for series of works on mechanics of technological processes in oil and gas production.


  1. On December, on oilfields of the USSR (Azneft, Bashneft, Udmurtneft and Permneft) there were successfully completed the tests of deep-pumping bars from new grades of steels, which are better than home and foreign grades on durability and reliability. Since then, and until now – Perm machine-building factory produces a large-scale production of these bars. Authors of this invention are the scientists of Azerbaijan Polytechnic Institute led by Rahim Shukyurov (numbers of author’s certificates of the USSR are 685710, 685711 and 777081).
  2. At the New-Baku oil refining factory, the largest complex on primary oil refining in republic has been placed in operation.
  3. On the oilfield named after April, 28th (nowadays – Guneshli) has been constructed the first deep-water stationary platform for drilling of 10 wells on depths to 6000 meters at thickness of sea water to 70 meters.


  1. For the first time, in the open sea, a deep-water (84 meters) stationary platform was installed.
  2. Scientist-chemist Bahadur Zeynalov (1917-1995) was appointed as main expert and the coordinator of State Committee of the USSR on Science and Technology on problems of synthetic naphthenic acids (SNA) production. The process of SNA production with direct oxidation of naphthenic hydrocarbons developed by him was patented in the USA, England, DDR, Romania and Japan.


Under the initiative of Heydar Aliyev, First Secretary of the Azerbaijan republic’s CC CPSU, the First International Soviet Union’s Oil and Gas industry exhibition was opened on June 17, in Baku. This exhibition was attended by over 2000 guests from more than 40 countries of the world. It was opened by the speech of Alexey Kosygin (1904-1980), Chaiman of the USSR Council of Ministers. In future, these international oil and gas exhibitions are among the most significant events in the life of the world community of businessmen, scientists and engineers.


Leonid Grigoryev from Baku, Head of the chair of an automated control systems of the Russian State University (RSU) of the oil and gas named after I.M. Gubkin gives lectures (on disciplines: Modelling of systems; Expert systems in oil and gas branch) in Algeria, in the Oil educational centre of Bumerdes-city.


  1. It was start of building of the Baku factory of deep-water bases in Azerbaijan – the unique enterprise which do not have analogues in the USSR. The factory constructed under a personal management of Heydar Aliyev, has played an exclusive role in manufacture of the metal constructions necessary for offshore mining.
  2. On July, 18th the minister of gas industry of the USSR, Sabit Orujov has signed the order on trust named after “Arcticmorneftgasrazvedka” creation; the experts of trust have established some records of deep-water immersing; and have opened major fields on northern shelf of Russia.


Offshore, on the Caspian Sea, in water depths of about 200 meters, 4 new multi-pay oilfields were opened: Guneshli (1979), Chirag (1985), Azeri (1988) and Kapaz (1989). Combined reserves of the fields were estimated at 700 million tons of oil and 200 billion cubic meters of gas.


  1. Doctor of Chemical Sciences, Professor Alimamed Shabanov lectures on application of crown-ethers in oil production and in oil refining at Maryland, South-Californian and Brigham-Young (Provo city) universities of the USA.
  2. New ship of structure-test drilling – Special ship # 1 named after A. Amirov, built by French company “Seret” was put into operation. For the first time equipment for flex drilling and water survey were placed on the same ship. The ship’s delivery on the Caspian Sea in Baku and the drilling of oil wells from the ship were realized under the leadership of experienced oil engineer Fyodor Pokhil.
  3. It was published the book of academician Ahad Yakubov (1908-1979) with title “The mud vulcanism of the Soviet Union and its connection with oil- and gas-bearing”; in which there were presented the scientist’s extensive researches on mud volcanos of Azerbaijan, Turkmenia, Georgia, Kerch and Taman peninsulas, Kuban and Sakhalin island.


  1. For the first time, drilling in water depth of 200m from a semisubmersible drilling rig was carried out.
  2. AzINEFTEHIM trains professionals within 31 discipline areas: the institute trained over 15000 students, including more than 1200 students from 55 foreign countries. The oldest school of higher learning of the USSR in Petroleum closely cooperates with oil Institutes and Universities in Moscow, Grozny, Ufa, Tumen, Ivano-Frankovsk, Ukhta, Dnepropetrovsk and others.
  3. Professor of chair of higher mathematics of RSU of oil and gas named after I.M. Gubkin, Mejid Huseynzadeh (1916-2006) has published (together with Yufin V.A.) the book “Unsteady motion of oil and gas in the main pipelines”.-М.:Nedra; in which mathematical models of oil-field mechanic’s liquids are presented. Huseinzadeh M.A. was the honourable worker of higher education of the Russian Federation (1996); he was registered in the Book of honour in RSU of oil and gas named after I.M. Gubkin.


Group of Soviet specialists, sent to Socialist Republic of Vietnam for search of oil and gas reserves, led by famous oil engineer Jalal Mamedov (1925-2009), discovered several large oil fields (White tiger, Dragon, Wolf and others) on the shelf in the South of Vietnam.


On September, 24 the leader of Soviet Union Leonid Brezhnev (1906-1982) arrived in Baku for celebrations dedicated to awarding Azerbaijan SSR with Award of Lenin. On 25 September, he visited a unique mobile platform – drilling installation Shelf-2, designed to drill wells to the depth of up to 6000m in water depths of up to 200m. (Previous his visits to Azerbaijan took place in 1970 and 1978.)


H.H. Ashumov’s monograph “Azerbaijani crude Oils” was published in Azerbaijani language in Baku. In this monograph, the author generalized and systematized composition and properties of Azerbaijani crude oils and oil products.


Baku chemist Shamil Vezirov (1942-2001), son of Suleyman Vezirov, was appointed as expert of the United Nations Organization in Northern Korea, where he worked in the International team to establish a catalytic cracking industrial complex and at the same time build a factory on polyvinyl chloride production in Khamkhin-city.


  1. In Baku, deep-water jackets factory was built. Initiator of the construction was the member of Political Bureau of Central Committee of CPSU Heydar Aliyev (1923-2003). At that time Azerbaijan produced 2/3 of oil equipment and machinery used in the USSR.
  2. Under the direction of Professor Rasul Kuliyev, for the first time in the USSR, it was developed the technology of receipt of the unique waxy transformer oils from a mixture of Baku low-paraffinaceous oils for transmission lines of high and super voltage. Kuliyev R.Sh. was one of initiators and organizers of radical reconstruction of oil manufacture at the Baku oil refining factories.


Famous oil scientist, geologist Farman Salmanov (1931-2007) is appointed as a First deputy Minister of Geology of the USSR; from 1992 he was a president of “Rospan International”. Salmanov had been engaged in development of oil industry and geology in Western Siberia of Russia for more than 30 years. He was a freeman of the Khanty-Mansi and the Yamal-Nenets autonomous areas, Surgut-city (Russia), Texas (USA) and Tsinchzhoy-city (China).


  1. Editor-in-chief of journal “Azerbaijan Oil Industry”, oil scientist Mir-Said Rza is appointed as member of experts commission on problems of oil and gas in the High Examination Board at Council of Ministers of the USSR (he held this position up to 1991, when the USSR was collapsed).
  2. Famous scientist in the field of oil and gas wells, Professor Rafik Kuliyev (1945-2008) was involved for work in China as the expert of the United Nations (UN). Later, in 1990-1994 he will work as the expert of the UN in Albania.


Under the direction of Professor Akif Aliyev extensive researches of potential resources of oil and gas of India have been conducted, the new card of prospects of Indian oil-and-gas content is made and on this basis effective directions of prospecting works that was highly appreciated by the Indian State Oil Corporation are defined. Aliyev A.I. is the author more than 220 published works (including 13 books and 10 inventions), series of the published oil-and-gas content’s cards of the former USSR and Azerbaijan.


1.Unique diving boat “Academician Tofik Ismaylov” equipped with the advanced equipment for technical and navigating purposes, underwater diving immersions of up to 300 m and with system of dynamic positioning started operations within “Kaspmornefteflot” (Caspian Sea Oil Fleet).

  1. Vaghit Alekperov (was born in Baku in 1950; he graduated from AzINEFTEHIM) – has appointed as a vice-minister of the oil industry of the USSR. In 1991, he is a President of first-rate Russian oil company “LUKoil” (this name was formed from first letters of the largest oilfields in the Soviet oil industry – Langepas, Uray and Kogalim). LUKoil is a part of the International consortiums in Azerbaijan and Kazakhstan; it carries out projects in the North Africa, Iraq and other countries.


Monograph of Yury Zaytsev (1931-2009) from Baku “Theory and Practice of Gas-lift” was published, and he was awarded with Diploma of the State Committee of the USSR on National Education for this work. Last years of life Yu.V. Zaytsev supervised development of gas field equipment at Industrial Associations Orenburggasprom and Astrakhangasprom.


During 13 – 17 of June, the First International Conference on Problems of the Caspian Sea was held in Baku. Main purpose of the Conference was reduction of oil pollution on the Caspian Sea during exploratory and development drilling. World’s leading ecologists and oil chemists from the USA, Canada, Great Britain, Russia, Turkey, Iran and other countries took part in the Conference.


  1. On September, 7 the agreement was signed in Baku between the Government of Azerbaijan and oil company BP Exploration on preparation of projects to develop offshore oilfield Chirag and offshore structure Shah-Deniz. Baroness Margaret Thatcher and Lord Brown of Madingley (Chief executive of the BP group) took place in the signing ceremony.
  2. The book of Baku scientists F.I. Samedova and M.F. Mir-Babayev “High-molecular heteroatom compounds from Azerbaijan oils” was published. The book presented results of original research with use of physical-chemical and spectral methods of the analysis in high-molecular compounds evolved from specific Azerbaijan oils and oil residue.
  3. Valery Grayfer from Baku, Professor of chair of oil and gas industry’s economy of RSU of oil and gas named after I.M. Gubkin has been appointed the general director of joint-stock company “Russian innovative fuel and Energy Company”; and from 2000, Grayfer V.I. is the chairman of directors’ board of the “LUKoil” Company.
  4. The experts of Amoco, the American oil company proposed a variant of Baku-Jeyhan pipeline, which right there got support of the USA and Azerbaijan’s administration. Therefore, when the first Azerbaijani oil contract was being developed, such the notion as the “Main export pipeline” was introduced there.


  1. In September, between Russian oil company LUKoil and State Oil Company of Azerbaijan Republic (SOCAR) – Frame Agreement was signed on Cooperation in the sphere of joint development of oilfields in Azerbaijan and Russia. The Agreement also envisaged coordination of activities in a number of areas, where LUKoil and SOCAR had interests.
  2. In October, Agreement was signed between oil companies SOCAR and Chevron (USA) joint exploration in the Southern Caspian Sea. The Agreement envisaged continuing negotiations regarding deep- water block Absheron. It was believed that Absheron was the largest known promising structure on the Caspian Sea.
  3. In Azerbaijan the quantity of stationary floating drilling installations has made 6 pieces (depth of the sea

to 70 m, depth of the wells to 6500 m); and quantity of semisubmersible drilling installations has made 5 pieces (depth of the sea to 200 m, depth of wells to 6000 m).

  1. Azerbaijan from oil republic has turned in oil and gas republic: the saved up volume of gas on the onshore has made 218 billion cubic m; on the offshore – 281 billion cubic m.


  1. On May, 24-28 the First International Caspian Oil and Gas Exhibition and Conference, incorporating Refining and Petrochemicals took place in Baku. Starting from 1994, the event takes place every year.
  2. On September, 20 the President of Azerbaijan Heydar Aliyev chaired the signing ceremony of Azerbaijan’s first oil PSA, for the development of Azeri-Chirag-Guneshli (ACG) fields. This Production Sharing Agreement (PSA) is known as the Contract of Century and was ratified by Milli Mejlis (Azerbaijani Parliament) on 02 December and came into force on 12 December. Total capital investments in the project were estimated at 13 billion USD. After one year, for the purposes of ACG project implementation an operating entity, Azerbaijan International Operating Company (AIOC), was created. Terri Adams from UK became the first AIOC President. AIOC was a consortium of 11 major international oil companies: BP (UK), Amoco (US), LUKoil (Russia), Pennzoil (now Devon of US), UNOCAL (US), Statoil (Norway), McDermott (US), TPAO (Turkey), Delta Nimir (now Amerada Hess of US), Ramco (US) and SOCAR (Azerbaijan).


  1. On October, 9 at a steering committee meeting of AIOC, northern and western oil export pipeline routes were approved. Length of an oil pipeline along the Northern route (Baku – Grozny – Tikhoretsk – Novorossiysk) is 1411 km, of which 200 km is in the territory of Azerbaijan. According to the project design, 2 pump stations will be built in Azerbaijan and in Russia, with capacity of 80 thousand barrels each. Construction of the western route oil pipeline from Baku to Supsa, with total length of 926 km was planned to begin in March of 1997.
  2. On November, 10 the 2nd PSA of Azerbaijan was signed between SOCAR and Pennzoil (US), LUKoil (Russia), Agip (Italy), LUKAgip (Russia / Italy) on exploration and development of prospective structure Garabakh was signed. Capital investments in the project are estimated at 1.7 billion USD. Oil reserves of the block are estimated between 52 million – 85 million tons; gas reserves are estimated at 30 billion cubic meters. This structure was seismically revealed in 1959.
  3. The first LUKoil gasoline filling station in the South Caucasus region was opened in Azerbaijan.


  1. On January, 18th the governments of Azerbaijan and Russian Federation signed an intergovernmental agreement on the transportation of the Azeri oil through the Baku-Novorossiysk pipeline.
  2. On March, 8th the governments of Azerbaijan and Georgia signed an intergovernmental agreement on transportation of the Azeri oil through the Baku-Supsa pipeline.
  3. On June, 4 the 3rd PSA of Azerbaijan was signed in Baku between SOCAR and BP, Statoil, LUKAgip, Elf Aquitaine (later Total-Fina Elf, and now TOTAL of France), OIEC (now NICO of Iran) and TPAO for the exploration and development of Shah Deniz field. Capital investments in the project are estimated at 4 billion USD; total reserves of the field are estimated at 500 billion cubic meters of gas and 100 million tons of condensate.
  4. On December, 14 the 4th PSA of Azerbaijan was signed between SOCAR and Amoco, UNOCAL,

Itochu (Japan), Delta Nimir (Saudi Arabia) for exploration and development of offshore prospective structures Dan Ulduzu and Ashrafi. Estimated oil reserves: Dan Ulduzu – 55 million tons, Ashrafi – 90 million tons. Capital investments in the project are estimated at 2 billion USD. This consortium of companies was named Northern Absheron Operating Company (NAOC) which was dissolved in 1999.


  1. On January, 13 in Paris, in the presence of Presidents of France and Azerbaijan – Jacque Chirac and Heydar Aliyev – 5th PSA of Azerbaijan was signed between SOCAR and French companies Elf Aquitaine and Total, for exploration and development of offshore prospective structures Lenkaran and Talish. Estimated oil reserves in the structure are as follows: for Lenkaran – 20-30 million tons; for Talish – 15-20 million tons. Capital investments in the project are estimated at 2 billion USD.
  2. On June, 4 in Moscow 6th oil contract of Azerbaijan was signed between SOCAR and LUKoil for exploration and development of Yalama block in offshore Caspian. Resrves of the block are estimated to be 800 million barrels of oil and 50 billion cubic meters of gas. Capital investments in the project are estimated to be around 4 billion USD.
  3. On August, 1 in Washington, in the presence of Azerbaijani President Heydar Aliyev and Vice- president of the USA Albert Gore, 7th, 8th and 9th oil contracts of Azerbaijan were signed between SOCAR and Chevron, Exxon and Mobil. The PSA’s envisage exploration and development of 3 offshore blocks: Absheron, Oguz and Nakhichevan. Capital investments are estimated to be: under contract # 7 (Absheron) – 3.5 billion USD; under contracts # 8 and # 9. (Oguz and Nakhichevan) – about 2 billion USD each.
  4. KCA-Deutag (KCAD) – one of the largest International platform drilling contractors in the world – started drilling operations on Chirag-1 in Azerbaijan, on the Caspian Sea. KCAD was the first international drilling contractor to start drilling operations on the Caspian Sea.
  5. On September, 26 in Rome, in the presence of Azerbaijani President Heydar Aliyev 10th oil contract of Azerbaijan was signed between SOCAR and Agip, Mitsui (Japan), TPAO, Repsol for exploration and development of offshore structure Kyurdashi. Capital investments in the project are estimated at 2.5 billion USD.
  6. On November, 12 the first oil from a well with flow rate of 1000 tons per day on platform Chirag-1 was received. 24 wells in total are to be drilled from this platform.
  7. Construction of oil terminal in Sangachal was completed. The oil terminal has capacity to receive and store up to 115 thousand barrels of oil.


  1. On April, 6 the Pirallahi offshore drilling unit of SOCAR was established with the purpose of intensifying offshore drilling operations in the fields adjacent to Pirallahi Island (it is the largest island of Absheron archipelago). Till 2003, this drilling unit would drill 46 wells.
  2. On June, 2 in Gulistan Palace, in Baku, Azerbaijan’s 11th oil contract was signed between SOCAR and Union Texas, Chinese National Oil Company and others for exploration and development of Gobustan structure. Capital investments in the project are estimated at 900 million USD.
  3. On July, 21 in Great Britain, Azerbaijan’s 12th PSA was signed between SOCAR and BP for exploration and development of prospective structure Inam. Capital investments in the project are estimated at 3.5 billion USD. (The structure was discovered in 1953, with the use of seismic methods).
  4. On July, 21 in London, in the presence of Prime Minister of Great Britain Tony Blair and President of Azerbaijan Heydar Aliyev, Azerbaijan’s 13th and 14th oil contracts were signed between SOCAR and BP/Statoil, ExxonMobil for Araz-Alov-Sharg offshore structure, and between SOCAR and ENCANA and TPAO for Muradxanli structure, respectively.
  5. On October, 5-8 the III International Petrochemical Conference, dedicated to memories of academicians M.F. Naghiyev and V.S. Aliyev took place in Baku. Petroleum scientist from many countries (the USA, Russia, Turkey, Iran, Ukraine, Bashkortostan, Kazakhstan and others) presented results of their research.
  6. In December, construction of Baku-Supsa oil export pipeline with total length of 827 km was completed. After one year’s time, throughput capacity of the pipeline would reach 105 thousand barrels per day or 5 million tons per annum.
  7. Professor Nil Khaireddinov from Baku, has published book called “Geo-technological Features of Development of Oilfields of the South-West of Bashkortostan”. The book contains results of his research into increasing oil recovery from aging large oil and gas fields in Bashkortostan, in Russia.
  8. On December, 12th the West Route Export Pipeline started operations.
  9. On December, 15th oil contract of Azerbaijan was signed between SOCAR, Frontera Resources Corporation and Chinese National Oil Company for exploration and development of onshore structure Kyursangi-Garabaghli. The contract area is located 100 km south-west from Baku. Capital investments in this project are estimated at 1 billion USD.
  10. On December, 25 the 16th oil contract of Azerbaijan between SOCAR and four Japanese companies was signed for exploration and development of Ateshgah structure in offshore Azerbaijan. Capital investments in the project were estimated at around 2.5 billion USD.
  11. Professor Farid Dadashov (one of the founders of Baku School of oil geologists) was elected as President of the Azerbaijan Society of the Petroleum Geologists. This society is a local branch of the International Association of Petroleum Geologists.


  1. On April, 21 in Washington, during Azerbaijani President Heydar Aliyev’s official visit to the USA, Azerbaijans 17th, 18th and 19th oil contracts between SOCAR and American companies were signed: two contracts were signed between SOCAR and ExxonMobil for exploration and development of offshore structures Zafar-Mashal and Lerik; another contract was signed between SOCAR and Moncrief Oil for exploration and development of onshore Padar structure.
  2. On June, Istiglal semi-submersible drilling rig completed drilling of 1st exploration well in Shah-Deniz. Drilling of the 2nd and the 3rd exploration wells would be completed in April of 2000 and in November of 2001, accordingly.
  3. On June, the British Petroleum (BP) Company became the operator of the Azeri-Chirag-Guneshli (ACG) oilfields.
  4. On September, 21-24 the V Baku International Congress – Energy, Ecology and Economy took place. More than 220 reports in 4 sections: Environmental problems of the Caspian Sea; Environmental problems of pipelines of Northern and Western directions; Energy-saving and climate change; Renewable energy sources; and Recommendations under legislative and normative documents. (Previous Symposiums and Conferences took place in Baku in 1991, 1993, 1995 and 1997).
  5. On November, during OSCE Summit in Istanbul – Azerbaijan, Georgia and Turkey signed Intergovernmental Agreements in support of the Main Export Pipeline of Baku-Tbilisi-Jeyhan (BTJ or BTC).
  6. On December, 22 an oil tanker Birch with 1 million barrels of Azerbaijani crude oil from Baku-Supsa pipeline, shipped by TotalFina, left Supsa oil terminal for Lavera (France).
  7. Professor of exploitation and operation gas and gas-condensate fields’ chair of RSU of oil and gas named after I.M. Gubkin, Zahid Aliyev has been elected a member of advisory council of the higher certifying commission of the Russian Federation. Aliev Z.S. is the author more than 207 scientific works, including 22 monographers.
  8. The State Oil Fund of Azerbaijan Republic was established by Degree of the Azerbaijan’s President Heydar Aliyev, dated on December, 29. Practical activities of the Oil fund commenced from the middle of 2001. At the time of its establishment, the Oil fund was considered as the accumulation fund for the future generations.
  9. The name of Professor Asif Hasanov from Azerbaijan Institute of oil machine-building was entered the Honorary book “Jubilee edition of century” by American Biographic Institute (ABI). Professor A.P. Hasanov is the author of about 200 scientific works, including 26 inventions and 12 monographs in the field of the creation and improvement of well’s maintenance.


  1. On February, based on the results of 2nd exploration well in Shah-Deniz (SDX2), reserves of the field were upgraded to 700 billion cubic meters of gas, of which 400 billion cubic meters are recoverable.
  2. On September, 12 the 20th PSA of Azerbaijan was signed between Moncrief Oil and SOCAR for development of onshore block Kalamaddin-Mishovdag. The contract became effective on 22 November, the same year. Capital investments in the project are estimated at around 1 billion USD.
  3. On August, 29 the President of Azerbaijan Heydar Aliyev inaugurated a new-built jack-up drilling rig in Baku and named it “Gurtulush”. Total construction time was 26.5 months. Rig was built by Singaporean company Keppel FELS and Azerbaijan’s Caspian Shipyard Company.
  4. Professor of development of sea oil and gas deposits’ chair of RSU of oil and gas named after I.M.

Gubkin, Dilijan Mirzoyev has published (in common with Vyahirev R.I. and Nikitin B.A.) the book “Construction and development of sea oil and gas deposits”. – Moscow, Academy of mining sciences; in which the problems arising at development of a continental shelf for the first time are summarised and systematised. Mirzoyev D.A. is the author more than 240 scientific works, including 38 certificates of authorship.

  1. The LUKoil’s fuel storage facility (one of the most technologically advanced in Azerbaijan), with an annual transhipment capacity of 120000 tons of oil products, was opened in Baku.


  1. On January, 9 the 21st PSA of Azerbaijan was signed between LUKoil and SOCAR for rehabilitation and further development of Zikh-Hovsani fields. The contract was signed during first official state visit of Russian President, Vladimir Putin to Azerbaijan. Capital investments in the project are estimated at around 250 million USD.
  2. For the first time in the world, new method for the prevention of hydrate-formation of natural gas was developed by Professor Alimamed Shabanov.
  3. Chingiz Husseinov from Baku, Professor of chair of computer-aided design’s installations of oil and gas industry of RSU of oil and gas named after I.M. Gubkin, has published the monograph “Oil-field fleet”.– М: Oil and gas; in which the results of his researches on designing and equipment layout of the top structures of platforms are presented. Husseinov Ch.S. is the author more than 200 scientific publications, including 30 certificates of authorship.
  4. On May, Milli Majlis of the Azerbaijan Republic ratified Intergovernmental Agreement on the South Caucasus pipeline project.
  5. On August, 16th the President of Azerbaijan Heydar Aliyev has signed the decree according to which on September, 20th it is celebrated as a Day of Oil industry workers of Azerbaijan (on September, 20th of 1994 the oil «Contract of a century») has been signed.


  1. In March, “Kaspmorneftegazstroy” became the first oil industry unit in Azerbaijan to receive International certificate of quality management.
  2. In March, Dubai-based company Middle East Petrol started to operate oil terminal at Dubendi. The company made significant investments in port infrastructure and considerably expanded its transit capacity. Dyubendi terminal was built in 1970 and is located at a distance of 47 km to the north of Baku, on Absheron peninsula.
  3. On May, Turkish parliament ratified Intergovernmental Agreement on the South Caucasus pipeline project signed between Turkey and Azerbaijan.
  4. In August, the textbook of Professor of Azerbaijan Technical University Rahim Shukyurov on “Physical Metallurgy” was published for the first time in Azerbaijani language. In his book he thoroughly presents his long-term research on development of new high-strength low-alloy steels for oil, oil-field and mining equipment.
  5. On September, 29 with a solemn ceremony, construction of a Turkish portion of Main Export Pipeline BTJ started. According to project schedule, within 32 months the Caspian (Azerbaijani) oil should go through Georgian and Turkish territories to the Western markets.
  6. In September, Doctor of Geological-Mineralogical Sciences, Academician of the Russian Academy of Natural Sciences Iskender Jafarof (graduated with honors from Azerbaijan institute of Oil and Chemistry named after M. Azizbekov in 1971) is appointed as Senior Vice-president of Siberia-Ural oil, gas and chemical company. Prior to this appointment, I.S. Jafarov held position of Director in the department of geology and field development in Tyumen oil company.
  7. In October, Government of Azerbaijan approves documents about social and ecological impact assessment of Shah-Deniz field development. In November the Government approves similar documents on social and ecological impact assessment within the project of construction of South Caucasus gas pipeline.
  8. President of Romania Ion Iliesku visited Baku on 29 of October and declared that Romania was ready to transport Azerbaijani oil and gas to Europe and also buy Caspian hydrocarbons.
  9. On November, 22 during his presentation to the students of Azerbaijan State Economic University, US special envoy for energy issues on the Caspian region, Stephen Mann said that proven reserves of the Caspian basin stand at around 50 billion bbls of oil, while potential resources could be as high as 85 billion bbls. according to him, natural gas resources of the region is about 6 trillion cubic meters.
  10. Total oil production in Azerbaijan was 12.686 million tons; of which, 7.444 million tons were produced by SOCAR and 5.242 million tons were produced by AIOC.
  11. Professor F.I. Samedova published a monograph “Azerbaijan’s Crude Oils and Their Characteristics”. In this fundamental work, the scientist extensively describes nature and properties of crude oils from various oil and gas bearing areas of Azerbaijan. The studies are based on applying various physical-chemical and spectral methods.
  12. For the first time in the world, Professor A.L. Shabanov applied chemical sensor controls and spin- labeled organic compounds for defining oil layers’ watering.


  1. In February, agreement was signed by BP (project operator), Statoil, TOTAL, NICO, LUKAgip, TPAO and SOCAR on Stage 1 development of Shah-Deniz gas-condensate field. According the agreement, a new gas export pipeline, so-called South-Caucasus gas pipeline from Azerbaijan through Georgia up to Georgian- Turkish border would be built. Total length of the pipeline would be 690 km, of which 442 km will be in Azerbaijan and 248 km in Georgia.
  2. On April, construction of BTC project commenced in Azerbaijan, Georgia and Turkey.
  3. On July, 23 the President of LUKoil Vahid Alekperov visited Baku and held discussions about the details of exploration work in D-222 (Yalama) block in the Azerbaijani sector of the Caspian Sea. A native of Baku, Vahid Alekperov would take part in the launching ceremony of Leader (DSS-20) semisubmersible drilling rig, constructed by Maersk of Denmark.
  4. In late October, first exploration well was spudded in Zafar-Mashal offshore structure, by using Leader (DSS) rig. Drilling location has a water depth of 618m and well depth is projected at 6800m. Project operator is Exxon. Exxon is also operator in projects Nakhchivan and Oguz.
  5. On November, oil tanker “Jalil Mamedgulizadeh”, built in Russian shipyard Red Sormovo, was delivered to Baku. The tanker, with capacity of 8000 tons is intended for transportation of Kazakhstan crude oil to Baku. The crude would later be shipped through BTJ. (Two more tankers are being built for Azerbaijan – each with capacity of 13000 tons).
  6. On November, International Finance Cooperation, a member of the World Bank Group and Europian Bank for Reconstruction and Development, adopted resolution on allocating financial support for the BTC pipeline construction project.
  7. Total oil production in Azerbaijan was 15.38 million tons for 2003. Total gas production was 5.17 billion cubic meters. From these totals, SOCAR share was about 58% in oil production and more than 80% in gas production.
  8. On June, 4 the 22nd PSA was signed between Shengli Oil and SOCAR for the development of Pirsaat oil-bearing block. Capital investments are estimated at 80 million USD.
  9. In October, a new semisubmersible drilling platform was built in Baku and named “Lider”. It was subsequently renamed “Heydar Aliyev”. Total construction time was 32 months.
  10. On September, 5 an agreement on cooperation was signed between LUKoil and the Azerbaijan State Oil Academy (ASOA). The sides agreed to cooperate actively in the training of specialists, the organization of scientific research works and the strengthening of the material and technical facilities of the ASOA.


  1. In the beginning of February, in Baku the governments of Azerbaijan, Georgia and Turkey signed basic intergovernmental agreements on construction of an oil pipeline of Baku-Tbilisi-Jeyhan. It was decided to name the pipeline and oil terminal at Jeyhan after Heydar Aliyev, the national leader of Azerbaijan and the author of new oil strategy of Azerbaijan. The pipeline will carry 50 million tons of oil per annum and will have a total length of 1770 km, stretching though the territories of Azerbaijan, Georgia and Turkey and connecting Caspian oil fields reches with the Mediterranean Sea.
  2. On February 10, the Russian government appointed LUKOIL as Russia’s authorized company for developing the hydrocarbon resources of the Yamalo-Samur sector of the Caspian Sea. The decision was taken in accordance with the Russian-Azerbaijan agreement on the delineation of the adjacent sectors of the Caspian seabed, signed in September 2002.
  3. In February, AIOC started drilling pre-drilled wells in East Azeri with semisubmersible drilling rig of Dada Gorgud.
  4. By the middle of April, volume of oil produced from Chirag to date totaled to 32 million tons, of which 28 million tons has been exported through the pipeline of Baku-Supsa, put into operation in the beginning of 1999.
  5. David Woodward, President of BP informed about 70% of the BTJ (BTC) pipes are welded in Azerbaijan and Georgia and in Turkey, which has the longest section of the pipeline, the work is also successfully progressing, where 50% of the pipes are welded.
  6. On May, 18 the Caspian Technical Training Center in Sangachal was officially opened. The training center is established to train technicians for ACG, Shah-Deniz, BTJ and South-Caucasus pipeline main (SPM). According to David Woodward “it is a unique center of its kind in the Caspian region, equipped up to the highest international standards and can train up to 400 technicians (drillmen) at a time”.
  7. In June, in Baku a PSA between SOCAR and Noble Sky Ltd. was signed for the rehabilitation and development of Garachukhur oil field. This is the 23rd oil contract of Azerbaijan with International companies. Capital investments by Noble Sky Ltd. in the project are projected at 220 million USD.
  8. On June, 2 in Baku, at the Caspian Oil and Gas International Exhibition and Conference, presented the results of geological exploration work carried out by LUKoil in the Northern part of the Caspian Sea.
  9. Vice-president of BP Azerbaijan for Shah-Deniz project, Rob Kelly informed that the first gas from Shah-Deniz field will be received on October, 1 of 2006. Cost of Stage 1 development of Shah-Deniz field is estimated at 3.2 billion USD, of which 2.3 billion USD will be spent for the field development and 900 million USD for the construction of South-Caucasus Gas pipeline.
  10. On September, there held a solemn ceremony dedicated to 10th anniversary of “Contract of the Century” in the presence of Mr. Ilham Aliyev the President of Azerbaijan Republic.
  11. In the beginning of October, Bulgarian President visited Baku and held talks with Azerbaijani President on the export of Azerbaijani oil to European markets..
  12. On October, the construction of South-Caucasus Gas pipeline, which will carry natural gas from Azerbaijani field of Shah-Deniz on the Caspian Sea to Turkey, via the territory of Georgia, began. Diameter of the gas pipeline is 106.6 cm with throughput capacity of 20 billion cubic meters per year. The pipeline construction will cost 950 million USD.
  13. In November, tanker “Heydar Aliyev” filled with Kazakhstani crude oil (about 12 thousand tons) arrived at Dubandi port of Baku from Aktau in Kazakhstan. The tanker will regularly carry Kazakh crude oil to Azerbaijan (making 7 trips a month).
  14. In November, President of Azerbaijan Ilham Aliyev took part in the celebrations dedicated to the 55th Anniversary of first oil production from Neft Dashlari (Oil Rocks) oilfield on the Caspian Sea.
  15. On December, 10 in Baku, in the Cinema House of the Union of cinematographers of Azerbaijan, presentation of a documentary film titled “Saga of Fiery Family” took place. The documentary, which was shot by director Sergey Bosenko, at “Rosinfofilm”, talked about Nobel family and about the contribution of Nobel brothers to the Russian (Baku) oil business.
  16. In December, Energy Intelligence Group (EIG) from United Kingdom published ranking of the largest oil companies of the world, based on the figures of 2003. The criteria used in ranking were company oil and gas reserves and also production rates. The first seven oil and gas companies in the world were: Saudi Aramco (Saudi Arabia), ExxonMobil (USA), PDVSA (Venezuela), NIOC (Iran), RD/Shell (Great Britain/Netherlands), BP (Great Britain) and ChevronTexaco (USA). Russian LUKoil and Azerbaijan’s SOCAR were 20 th and 36-th, respectively.
  17. On December, 12th the first oil was produced at Central Azeri area (Central Azeri rig).
  18. 24th PSA of Azerbaijan was signed between AzEN Oil and SOCAR for rehabilitation and development of Binagadi oil field on October, 29. Capital investments in the project are estimated at 618 million USD.
  19. The 25th PSA of Azerbaijan was signed between Caspian Energy Group and SOCAR for rehabilitation and development of Kyurovdagh oil field on November, 5. Capital investments in the project are estimated at 200-300 million USD.
  20. In Houston (USA), the prominent oil scientist Yusif Safarov (1907-1963), twice the Stalin Prize laureate was posthumous rewarded with the order of “Ocean Star” for the exploring and exploitation of world- famous sea-oilfields on the Caspian Sea in 1945-1952.
  21. In Baku has passed a seminar on an exchange of an operational experience between Trade union of workers of the oil and gas industry of Azerbaijan and Federation of trade unions of workers of the oil, gas and petrochemical industry of Norway. Problems of maintenance of safety precautions on manufacture, health protection of oil industry workers and ecology of Northern and Caspian seas were discussed. At opening of a seminar with speech president of Statoil-Azerbaijan George Gunderson has acted, having told about realisation of projects: oil’s АCG, gaseous condensate’s Shah-Deniz both pipelines BTJ and Baku-Erzurum.


  1. For the first four months AIOC exported 2 million 774 thousand tons of oil; an increase in export came from East Azeri, where production started in February of this year. The export volume is 34.5% or 709 thousand tons more than it was in the same period of the previous year.
  2. On February, 16 in Moscow, LUKOIL Overseas Holding Ltd. announced its withdrawal from the Zykh- Govsany project in the Azerbaijan Republic. The decision was mainly reasoned by the fact that the economic performance of the project does not meet the Company’s efficiency requirements due to considerable expenses for the environmental reinstatement of the contractual area and highly worked-out deposits.
  3. On May, 10 the first stage of pumping the technical oil into BTC export pipeline started. Filling the pipeline with crude oil started on May 25. In a Press Release, BP Azerbaijan said that for complete filling of the pipeline about 10 million bbls of oil will be needed. Loading the first tanker with oil in port of Jeyhan is scheduled for the fourth quarter of 2005. The pipeline BTC with 1770 km long is the second longest pipeline in the world after Russia’s “Druzhba”.
  4. On June, 1 the VIII International Conference titled “Energy, ecology and economy” started in Baku. Scientists from the USA, Germany, Italy, Japan, Russia, Turkey, Iran and many other countries participated in this Conference. Main issues discussed during the Conference were protection of ecological balance on the Caspian Sea, technical safety of oil and gas pipelines, alternative energy sources and various other related issues.
  5. “Baky Fehlesi” (Baku Worker), a large industrial enterprise producing oil machinery celebrated its 105th Anniversary. This factory was established in 1900, in Sabunchi settlement, on the basis of workshops of oil company “A. Benkendorf”. The factory for many years had been the main oil machine building plant in Soviet Union and was supplying oil machinery and equipment not only to the USSR, but also to more than 27 countries worldwide.
  6. This year was announced as the Year of Yusif Mamedaliyev by UNESCO, to mark the 100th Anniversary of outstanding Azerbaijani chemist’s birthday. Mamedaliyev invented fuels during the World War II and these fuels were named as the Fuels of Victory, to underline their importance in Soviet victory during World War II.
  7. President of ВР Azerbaijan, David Woodward announced that during 2005 average daily oil production from Chirag would level at 134 thousand barrels per day and average daily oil production from Central Azeri will average at 106 thousand barrels per day.
  8. During September 25-27, in Johannesburg (in South Africa) the XVIII World Oil Congress took place. More than 3000 delegates from 65 countries, members of the World Oil Council (WOC) took part at the event. Azerbaijan was accepted as a full member of WOC at this Congress.
  9. On August, 16 the 26th PSA of Azerbaijan was signed between SOCAR and Rafi Oil of UAE for the rehabilitation and further development of Surakhani oil field. Capital investments are estimated at 400 million USD.
  10. On October, 12 there hold a solemn ceremony dedicated to commissioning of Georgia part of Heydar Aliyev BTC main export pipeline in the presence of Mr. Ilham Aliyev the President of Azerbaijan Republic.
  11. On December, 31 First oil was produced at Western Azeri area (West Azeri rig)
  12. Azerbaijan produced 22 million 248 thousand tons of oil and 5 billion 818.3 million cubic meters of gas. The oil produced by SOCAR, joint ventures, onshore operating companies made up 8 million 967 thousand tons from the total volume of production.


  1. In January, the 60.3 thousand tons of Azeri Light grade oil is injected into BTJ pipeline. For complete filling of BTJ pipeline, 10 million bbls of oil is needed. Until now, about 630 thousand tons of oil is injected into BTJ pipeline. Full commissioning of BTC pipeline is scheduled for the spring of this year.
  2. In March – BP (the operator ACG fields development) has commissioned the tenth production well on Central Azeri platform. In 2006, average daily oil production from ACG is planned at 458 thousand barrels per day.
  3. In May – 399 thousand 361 tons of oil was transported through Baku-Novorossiysk pipeline (Northern Export route). 66 thousand 790 tons of oil from the mentioned volume belongs to SOCAR, whereas 332 thousand 571 tons of oil belongs to AIOC-partners.
  4. For the first time, nanotechnology is used in production cycles at SOCAR enterprises. The original idea belongs to academician Azad Mirzajanzadeh; initial results indicate the success of the new technology.
  5. On June, 7 in Baku LUKoil President Vagit Alekperov spoke at the Caspian Oil and Gas Conference, noting in particular, that the Company discovered on the Caspian Sea the 10 promising structures and the 6 fields holding over 150 million tons of oil and 700 billion cubic meters of gas.
  6. On July, 13th there held a solemn ceremony in Turkey, which dedicated to commissioning of overall Heydar Aliyev BTC main export pipeline in the presence of Mr. Ilham Aliyev the President of Azerbaijan Republic.
  7. On October, the first oil was produced at Eastern Azeri area (East Azeri rig).
  8. In November – Bill Schroeder is appointed President of BP Azerbaijan. He replaces David Woodward who had been in that position for eight years.
  9. In November – SOCAR and Russneft signed a PSA to rehabilitate and develop Zykh-Hovsani oil field. Investments are projected in the range of 100 – 150 million USD.
  10. According to data from journals “Petroleum Intelligence Weekly” and “Petroleum Economics Policy Solutions”, 94% of World’s hydrocarbon reserves, which stand at 1.37 trillion barrels, belongs to 20 countries. Saudi Arabia takes the lead (with total reserves of 289 billion barrels; Canada is second (with total reserves of 179 billion, including oil sands). Azerbaijan stands at 17th place (with total reserves of 14 billion barrels).
  11. Total oil production in Azerbaijan was 32 million tons. This was a record production for Azerbaijan. The highest previous oil production in Azerbaijan was 23.5 million tons in 1941.
  12. The oil refineries of Azerbaijan processed 7 million 392 thousand tons of crude oil.


  1. BTJ (BTC) pipeline transports 600 thousand barrels of oil per day. It’s one of the the longest oil pipelines in the world with total length of 1768 km. BTJ pipeline delivers oil from Sangachal oil terminal in Azerbaijan to Jeyhan terminal in Turkey.
  2. On April, 10 the vice-president of “Shell” oil company Guy Oaten has declared that “Shell” examines the possibility of oil transportation from Kazakhstani oilfields (Kashagan and others) via BTJ pipeline. Vice- president also announced that “Shell” was interested in cooperation with SOCAR in the area of oil production, refining and marketing.
  3. On April 23-24, the First Caspian oil trading and transportation Conference was held in Baku. The Conference was organized by the British company “Confidence Energy Ltd.”. The purpose of the Conference was bring together oil trading and transportation experts together to discuss potential and problems associated with the development of Central Asia-Europe transport corridor.
  4. During July, 2 millions 875 thousands and 125 tons of Azerbaijani oil was transported by BTJ pipeline. During the same months SOCAR exported more than 100 thousands tons of Azerbaijani crude via Baku- Novorossiysk oil export pipeline (Northern route).
  5. On August, 16 the BP finished drilling very deep and most expensive well on the Caspian Sea. The well was Shah-Deniz 4th exploration well (SDX-4), drilled in the gas-condensate field of Shah-Deniz: the well’s total depth was 7301 meters and in current prices its cost was 240 millions USD.
  6. On September, 4 the construction of 48-inchlong gas-pipeline Sangachal – Gazimagomed with total length of 47 km and throughput capacity of 5-6 millions cubic meters of gas per day was completed. The gas- pipeline is intended for natural gas supplies from gas-condensate field Shah-Deniz.
  7. On September, 27 in Azeri sector of the Caspian Sea, on commission from LUKoil Overseas the Baku branch of LUKoil – VolgogradNIPImorneft Institute performed an environmental impact assessment of geologigal engineering surveys at the offshore block D-222 (Yalama). As a result of assessment the surveyors established that impact of geological engineering surveys on the atmosphere, sea-bed sediments, hydrobionts and fishes of the Caspian Sea can be evaluated as minimal.
  8. On October 4-5, in Baku it was occurred the International Conference “The policy of sustainable development of the Caspian Sea”, the main purposes of which were – the research of the reasons of the Caspian’s oil polution, and the creation of the possibility for solution of ecologic problems by the co-operation with International organizations and States-donors. The representatives from Germany, Kazakhstan, Iran, Turkmenistan and Georgia took place on the conference.
  9. On October, 20th the 100 millions tons of crude oil was produced on the block of oilfields “ACG”.

10.On October, 31 in Baku port, the ceremony of acceptance of the cargo boat “Caspian Pride” (Aalesund) built on the plant Brevik in Norway by the SOCAR’s request was held. From this point during 10 years this boat will service for the operations on the block of oilfields “ACG” and on the gas-condensate field Shah-Deniz.

11.On December, 25 the 20-inchlong gas pipe-line Neftyaniye Kamni (Oil Rocks)-Bakhar with length of

66.6 km and carrying capacity of 5.5 millions cubic meters per a day was placed in operation. The gas pipe- line is intended for transport of natural gas extracted from field Guneshli to onshore.

  1. The state oil fund of the Azerbaijan Republic is awarded the «Award of public service of the United

Nations» on «to Increase of a transparency and responsibility in public service». Azerbaijan is presented to nomination on the award within the limits of region of the Western Asia.


  1. From January-February the oil production in Azerbaijan was about 9 million tons. For the same period the country exported about 6 million tons of oil and about 350 thousand tons of mineral oil.
  2. Since the beginning of March, the Chinese Operation Company Salyan Oil has been extracting oil from the offshore oil fields of “Kyursangi-Garabagly”. Drilling from the first well this year from the “Kyursangi” oilfield has now been completed to an estimated depth of 4000 m. This year the company plans to drill 6 wells each to depth of 3500-4000 m.
  3. The British oil service company RBG Ltd. has signed a contract for 4 years with company BP Exploration Caspian Sea on service 5 sea objects: 1) an oilfield «Аzeri-Chirag-Guneshli», 2) gas-condensate field “Shah- Deniz” and three export pipelines – BTC, Baku-Supsa and the South Caucasian gas pipeline. Annual cost of the contract is 20 million USD.
  4. On March, 18-20th, in Ankara there passed VII International oil and gas exhibition-conference TUROGE- 2008, the organizer of this was British company ITE Group. On this conference there were discussed the oil recovery and gas problems on the Caspian and Black seas, prospects of transportation of oil and gas resources and a role of Turkey in this sphere. At conference Ministers of Energy and representatives of the governments of Turkey, Azerbaijan, the USA, Great Britain, Russia, Italy, Greece, Iran, India, etc. have taken part.
  5. In April from the port of Jeyhan 25 tankers (with more than 18,7 million barrels) carrying oil of Azeri Light mark extracted from the block of oilfields «Аzeri-Chirag-Guneshli» in the Azerbaijan sector of the Caspian Sea have been shipped. Oil transportation was carried out by the BTC pipeline.
  6. In the end of April BP Azerbaijan Co. – the operator of the Caspian oil project “ACG” – declared the beginning of hydrocarbons’ production from a complex of platforms on an oilfield Deep-water Guneshli (DWG). Thus, the basic capital works within the limits of last, the third, phase of “ACG” (the main oil project of Azerbaijan) have come to the end.
  7. On May, 17 in Mexico City (Mexico) at University UNAM has taken place conference on a theme “Azerbaijan: influence of oil resources on modern strategy»; on which there were discussed a role of Azerbaijan in maintenance of the international safety and influence of oil and gas elaborations in Caspian Sea on global power partnership. University UNAM (Universidad Nacional Autonoma de Mexico) is based in 1551, and it is one of the largest universities of Latin America.
  8. Azerbaijan vessel «Israfil Huseynov» has finished a pipeline lining on an oilfield “Yuri Korchagin” on a shelf of Northern Caspian Sea developed by Russian «LUKoil». Extension of the pipeline – 58 km, diameter – 12 inches; was conducted at a depth of 10-20 m. The quality check-up of pipeline was carried out by special towboat “Ehram Haligov” together with the necessary equipment and experts.
  9. The delegation of Azerbaijan has taken part on XIX World Oil Congress (Madrid; 28.06 – 03.07); there were discussed the problems of developing oil business, cooperation between the largest oil companies, questions of power savings and environmental situation. On this congress the representatives of Spain, Saudi Arabia, Iran, Qatar, Algeria, Nigeria, Angola, Venezuela, Colombia, Uruguay, etc have taken part.
  10. On November, in Baku the IV Energy forum (summit) has taken place, participation in which representatives of 21 countries of Europe, Asia and America have accepted. Support of two projects: an oil pipeline Odessa-Brodi and gas pipeline Nabucco became a summit’s main objective, for which realisation the hydrocarbon resources of the Caspian region are necessary.
  11. On December, in London was established the new company “Khazar Energy Co. Ltd” for transportation of gas from Caspian region (East Caspian) to Europe. The founders are the Austrian firm “OMV Gas and Power GmbH” and German firm “RWE Supply and Trading GmbH”.
  12. According to ВР Azerbaijan Co. this year on oil pipeline BTJ (ВТС) was pumped 32.9 million tons of oil and a condensate.


  1. On February, 27 the agreement (contract) on prospecting and exploitation of structure “Absheron” in the Azerbaijan sector of the Caspian Sea between SOCAR and «Total» (France) is signed. On contract conditions «Total» 60 % of participation, and SOCAR – 40 % have got. Gaseous- condensate structure “Absheron” is located in 100 km from Baku; depth of the sea in this area makes 500 m.
  2. On March, the “EIG” Company (United Kingdom) has made a rating of 50 largest oil and gas companies in the world. The rating list is prepared on the basis of the balance reports confirmed in 2007. Into first ten enter: “Saudi Aramko” (Saudi Arabia), NIOC (Iran), “Exxon Mobil” (USA), PDV (Venezuela), CNPC (China), ВР (England), “Shell”, “Conoco Phillips” (USA), “Chevron” and “Total” (France). The Russian company “Gazprom” in this list takes 13th place, LUKoil – 18th place, “Uzbekneftegas” – 34th, SOCAR – 36th and the Kazakhstan’s company “Kazmunaigas” – 50th place.
  3. On March, the American company KBR has covenanted the agreement with BP Azerbaijan on the exploitation of the new extracting project “Chirag” within the limits of exploitation of “ACG” oilfields in Azerbaijan sector of the Caspian Sea. Realization of the project “Chirag oil project” (COP), assuming an oil production increase on oilfields “ACG”, is planned to begin in 2013. The platform COP which will be established on depth of water to 170 m is calculated on the drilling of 48 wells.
  4. On April, on the block of oilfields “АCG” in the Azerbaijan sector of the Caspian Sea developed by the Azerbaijan International Operating Company under the control of BP Company as a operator, it was extracted more than 1 billion barrels of Azeri Light Oil. More than half extracted oil on “АCG” was pump acrossed on oil pipeline BTJ (ВТС) which operator is ВР also.
  5. On April, SOCAR has put into operation a Bahar-Hovsani-Surahani gas pipeline which carrying capacity makes up 5 million cubic metres. The extension of an underwater site of a gas pipeline makes up 34830 m with diameter of 508 mm; the extension of an overland part is 9844 m with diameter of 762 mm. The pipeline is intended for delivery of gas from a deposit “Guneshli” to the population and industrial projects, first of all, for natural gas industry of thermoelectric power station “Shimal”.
  6. According to the minister of the industry and power of Azerbaijan Natik Aliyev the proved reserves of gas in Azerbaijan make about 3.5 billion cubic metres; and gas reserves on a deposit “Shah-Deniz” make

1.2 billion cubic metres. The minister has noticed that the republic acts as the supporter of transportation of the Azerbaijan energy resources to Europe; therefore supports the project of the Eurasian petrol- transport corridor and, in particular, the project of oil pipeline Odessa-Brodi.

  1. In the end of April a production association “Azneft” (structure of SOCAR) has placed in operation a new well on the oilfield Oil Rocks. The well № 2560, with depth of 1554 meters and daily output in 15 tons of oil, has been drilled from a platform # 2387.
  2. On May, 22 the parliament of Azerbaijan ratified the oil contract signed between SOCAR and Total on exploring and exploitation of sea perspective structure “Absheron” in the Azerbaijan sector of Caspian Sea. Under the contract SOCAR has received 40 % of individual share, and Total – 60 %. Within three years on block “Absheron” one exploratory well in cost about 100 million USD will be drilled.
  3. In Baku from June, 2 till June, 5th under the direction of the President of Azerbaijan Ilham Aliyev there has passed XVI International exhibition and conference “Oil and Gas. Oil Refining and Oil Chemistry of the Caspian Sea”. As organizers of an exhibition the British company ITE Group and its partner on the Caucasus company Iteca Caspian together with Commercial and industrial chamber of Azerbaijan have acted. At an exhibition the member of the British royal family, the duke of York, Prince Andrew has taken part.
  4. On July, 13th in Ankara the intergovernmental agreement under project Nabucco is signed by heads of the governments of Turkey, Austria and Hungary. Ministers of 20 countries participated in ceremony; Azerbaijan was represented by the minister of the industry and power Natig Aliyev. The project, at the cost of 7.9 billion euro, will deliver gas from the Caspian region to the EU countries. The beginning of building of a gas pipeline is planned on 2011, the first deliveries will begin in 2014; its maximum capacity will make 31 billion cubic m a year.
  5. On July, 13th in London, BP and SOCAR have signed a memorandum of understanding (MOU) to jointly explore and develop the Shafag and Asiman structures in the Azerbaijan sector of the Caspian Sea. The MOU was signed in the presence of Ilham Aliyev, President of Azerbaijan Republic and UK Prime Minister Gordon Brown, by Rovnag Abdullayev, President of SOCAR and Andy Ingles, BP’s Chief Executive of Exploration and Production. The structures have never been explored before; they are located in deepwater section of about 650-800 meters with reservoir depth of about 7000 meters.
  6. From September, 29th till October, 2nd in Baku will take place the VII-th Baku international Mamedaliyev’s conference on the petro chemistry, devoted to 80-year-old anniversary of Institute of petrochemical processes (IPCP). Organizers of conference are the embassy of republic Korea in Azerbaijan, National academy of sciences of Azerbaijan, SOCAR, BP-Azerbaijan and IPCP. The action purpose consists in definition of perspective directions of researches in the field of petro chemistry and oil refining.
  7. For January-July on oil pipeline BTJ (ВТС) 1 million tons of the Kazakhstan oil from an oilfield of “Tengiz” has been transported. This oil is transported on BTJ and the railway to ports Kulevi and Batumi. The operator of an oilfield of “Tengiz” is ChevronTexaco. The owner of the Georgian Black Sea terminal in Kulevi is SOCAR (Azerbaijan), and in Batumi – “Kazmunaygaz” (Kazakhstan).
  8. “ACG” oilfield’s block took third place in a ranking of the world’s 20 largest oil fields set up by the American Consulting Association CERA (Cambridge Energy Research associates).Under CERA estimates, oil production from this bloc of fields is 850,000 barrels per day. Azeri Light oil produced from “ACG” fields is delivered to the Turkish Jeyhan port via the BTJ (BTC) pipeline. First place is held by Havar field in Saudi Arabia with a daily production of five million barrels. The second is the Burgan field in Kuwait with a daily production of 1.2 million barrels.
  9. Up to August, 1st there exported 91.3 million tons of oil through Heydar Aliyev BTC main export pipeline, 48.8 million tons of oil through Baku-Supsa pipeline and 11.2 million tons of oil through Baku- Novorossiysk pipeline.
  10. In August, the American expert from analytical centre The Tool Shed Group Jayson Katz has underlined importance of the contribution of Azerbaijan in a diversification of deliveries of energy carriers and in strengthening of power safety: «As a whole any project, concerning export of the central-Asian power resources to Europe, cannot pass by Azerbaijan which is one of the major economic and political points of the world, and has huge geopolitical value in all region of the Caucasus and the Central Asia».
  11. On September there are published the data of SOCAR’s management according to which the mineable reserves of oil on the block of oilfields “АCG” are estimated in 923 million tons.
  12. On September, 15th in Baku took place the exhibition devoted to the 15th anniversary of “Contract of the Century”: at the moment from the block of oilfields “ACG” was produced about 1 million barrels of oil per day, which are exported to the World market by BTC pipeline. Also, at this exhibition took place the presentation of the book “Nobel” devoted to the 130th anniversary of “Nobel Brothers” company’s establishment and work in Azerbaijan.
  13. On October, 2nd in Baku the National Company of Kazakhstan “KazMunaiGas” and SOCAR signed an Agreement on joint development of technical-economic substantiation on Trans Caspian project, a Memorandum of intention on cooperation on “Baku-Black Sea” oil pipeline and a Memorandum on joint use of SOCAR’s oil and gas infrastructure during development of Kazakhstan’s hydrocarbon fields.
  14. October, 5. The volume of investments in Azerbaijan’s economy under the PCA (Production Shearing Agreement) signed with foreign oil and gas companies are estimated at 60 billion USD, SOCAR’s president Rovnag Abdullayev said. “Since 1994, 26 oil contracts have been signed with foreign oil companies. The afore-said contracts envisage investments worth 60 billion USD in oil and gas production in Azerbaijan” he said.
  15. President of Azerbaijan Ilham Aliyev attended a ceremony to mark the 60th anniversary of Neft Dashlari (Oil Rocks) on November, 5. Ilham Aliyev has said the country would increase efforts towards strengthening its oil and gas potential. The Head of State attended an opening ceremony of a park for oil workers and new gas compressor station. On ceremony was noted that on today, it was produced 167 million tons of oil on this oilfield.
  16. Through 11-14 November, in London’s “Asia House” gallery took place a photo-documentary, art and digital exhibition dedicated to 15th anniversary of signing of the “Contract of the Century” and 130 anniversary of activity of the Nobels Brothers in Azerbaijan.
  17. December, 22 in Baku SOCAR signed PSA contract with the Bahar Energy Ltd Co. for the exploration, rehabilitation, development and production of the block, which includes the Bahar and Gum Deniz offshore fields located in the Azerbaijan sector of the Caspian Sea.


  1. On March, 9 in Baku it was sanctioned Chirag oil project to expand production of Azeri Light oil at the “ACG” block. Investments in the project are expected to reach 6 billion USD. The project envisages construction of a new platform “West Chirag”; it will be installed at a depth of 170 m between the already- running production platforms Chirag and Guneshli. This project is expected to get oil in 2013.


Author: Doctor of Chemical Sciences, professor of the Azerbaijan Technical University Mir-Babayev Mir- Yusif Fazil ogly is well-known and experienced specialist in the area of oil chemistry and ecology. He was born in 1953, in Baku. He graduated from Chemical technology faculty of the Azerbaijan Oil and Chemistry Institute named after M. Azizbekov in 1975. In 1986 he defended his PhD’s thesis on the speciality of “Oil chemistry”. In 1994 he defended his doctoral thesis. He is the author of more than 90 scientific works published in Azerbaijan and abroad (in Russia, Iran, Turkey, USA). He began to study the history of Azerbaijan oil business from 1992. His articles are published in magazines of “Azerbaijan oil industry”, “Chemistry and technology of fuels and oils” (Moscow), “Oil chemistry” (Moscow), “Territory of Neftegas” (Moscow), “Oil Gas Chemistry” (Moscow), “Azerbaijan International” (CA, California), “Horizon” (BP; London), “Caspian” (Baku & Astana) and others.
At the moment he is the expert of an oil history in the group of Oil museum’s creation in Baku and a member of editorial board of the magazine “Azerbaijan oil industry”.

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