Azerbaijan > Oil in Azerbaijan
Oil in Azerbaijan
However, mechanical oil ' drilling had started in 1847 in Bibi Eybat (the suburbs
of contemporary Baku).
In 1859 the first oil refinery factory was built (Kokorin factory in Surkhani).
There in Surakhani yellow and white oil was turned into kerosene for the first
time in the world. The very first oil tankers were also built in Azerbaijan
and transported oil on the Caspian Sea. There were about 30 sailing tanker ships
and some steam ships by the 1890.The first in the world tanker ship with the
steel case was built here in !877 and got the name” Zoroaster” after I the prophet
of the fire I worshippers. By the last I quarter of the 19'" u century,
there was rapid I growth of foreign investments stipulating the boom of oil
industry extracting, refinery and chemistry. It should be mentioned that the
main capital of Sweden Nobel was obtained in Azerbaijan.
The whole oil products in Russia came from Baku. There were only nine mechanical
oil wells in 1879 but the output increased by 1895 and a hundred years later
there were 1710 mechanical oil wells. Absheron was turning into large significant
industrial agglomeration giving more than 50% of the world oil output in 1889.
With the oil boom Baku far expanded beyond the ancient walls of the old town,
the area of oil industry the so-called "Black town" appeared that
was attracting laborers from the rural districts of Azerbaijan, from Russia
and Iran. The oil drilling towers still are decorating the suburbs of Baku and
the industrial landscape of Absheron The Absheron oil helped the USSR to win
the terrible warwith the Hitler's Germany. The fuel for tanks, airplanes and
vehicles came from Baku where scientists and engineers worked over new technologies
inventing many valuable items. The famous "Molotov cocktail" and Soviet
napalm was invented by Yusif Mamedaliyev, the Academician and distinguished
scientist. Not far from Baku in the sea started the first in the world complex
of platforms for sea oil drilling and extraction the 'Neft Dashlari" .When
the state independence of Azerbaijan was restored it could use own natural resources
free of the collapsed USSR impact. In 2004, independent Azerbaijan celebrated
the 10" anniversary of the big oil contract that was called "the contract
of the century». The contract provides the building of the important Baku- Tbilisi-Jeykhan
oil - transporting pipeline that will connect the oil extracting sites of Azerbaijan
and some fteighbor Caspian states with the world market.
Nowadays the oil industry of Azerbaijan is represented with the State Oil
Company that is cooperating with the biggest international corporations like
BP, STATOIL, LUKOIL etc.
Azerbaijan signed more than 55 various contracts related to the hydro carbonic
resources of the country by the 2004.