First Petroleum Agreements

In this first year of war, Azerbaijan produced a record 25.4 million tons of oil. The decree of the Supreme Soviet of the USSR, in February 1942, recognized the commitment of more than 500 workers and employees of azerbaijan`s oil industry by awarding orders and medals from the USSR. The Noble brothers were the first to set up railway tanks for the transport of oil when the railway link between Baku and Tbilisi was built in 1883. The situation, with limited export opportunities, was resolved by the construction of the Baku-Batum pipeline. After 1936, Batum was renamed Batumi. Construction began in 1897 and was completed 10 years later under the supervision of Professor N. L. Szhukin. [12] The world`s first successful oil tanker – a renovated metal ship called Zoroastr – was built in Sweden in 1877 by Nobels. Until 1890, 345 tankers, including 133 steamboats and 212 sailboats, sailed on the Caspian Sea.

For example, Mazut Trading Co, founded in 1898 by Rothschild Fréres, owned 13 tankers in the Caspian Sea in 1898. During these years Azerbaijani shipowners appeared, the largest fleet of which belonged to Shamsi Asadullayev. The first detailed description of Baku`s oil industry was made in 1683 by Engelbert Kaempfer, secretary of the Swedish Embassy in Persia, Iran. In the early 1930s, engineers proposed the construction of offshore wells of wooden piles connected by a dam. The first fountain was laid on the high seas at the depth of 6 m east of the filled Bibi-Heybet Bay. In the late 1890s, large companies began employing geologists to describe and map future structures. Geologist and oil specialist Dmitri Golubyatnikov began a systematic study of Absheron and predicted the availability of oil deposits in the Surakhany field. In 1901, the Pirallahi oil field was discovered and put into production. Scientists such as Ivan Gubkin, Golubyatnikov and Uskin first described azerbaijan`s serially productive deposits and process generation for the first time in 1916.

State participation in the joint venture helps developing countries obtain new oil technologies, know-how and vocational training from a more developed foreign investor. Cooperation with the state-owned oil company can increase an investor`s chances of winning the tender for an oil project. If a state-owned enterprise already has an existing licence to carry out oil activities, the creation of a joint venture will allow a foreign investor to benefit. For the first time in Russia in 1925, engineer De Baku M.M. Skvortsov built a device for the automatic movement of a chisel, known as the “automatic driller”. In 1930, the electric wood technique was used in the Schlumberger well in the Surakhany oil field. On August 24, 1949, the first offshore exploration well at Neft Dashlari (oleo-oleiary rocks) was stung after the dam was built. In November, the N1 well tested at a depth of 1,000 metres of oil at a speed of 700 bbl/d (110 m3/d). Neft Dashlari is called the “islet of the seven ships” because disused vessels were sunk during the construction of the bridgehead to create a solid base for the dams.

Haji Kasimbey Mansurbekov, in 1803 for the first time in the world, begins production of sea oil at Bibi-Heybat Bay from two wells located 18m and 30m from the coast. The first offshore oil operation was abandoned when a strong storm destroyed the wells in 1825.