The historical roots of Azerbaijani oil go back to ancient times. This information is reflected in the various works of ancient historians and travelers. The development of the oil industry in Azerbaijan consists of several stages.
Stage I covers the years 1847-1920. In 1848, for the first time in the world, industrially important oil was extracted mechanically from the Bibiheybat and Balakhani fields, and this event is considered to be the beginning of the development of Azerbaijan’s oil industry.
For the first time in the world, an offshore oil well was drilled in Bibiheybat in the early 19th century, 30 meters offshore.
As the technology of mechanical drilling of oil wells develops, new oil fields are discovered in the country (Binagadi, Pirallahi village, Surakhani, etc.), which has a positive impact on the development of the country’s oil industry infrastructure, oil refining system, and oil production. And thus, Baku is becoming one of the world’s industrial centers.
At that time, the state leased its unused land for oil exploration for 24 years. The lessee had the right to export its oil and set its selling price. The lessee’s net income from the sale of oil was 14-15%.
The 2nd stage of development of the Azerbaijani oil industry began in 1920 after the nationalization of the oil industry in Azerbaijan and covers the period of discovery of the offshore field “Oil Rocks” in 1949. In 1921, oil production decreased to 2.4 million tons. As a result of the expansion of exploration of new oil wells, new oil fields were discovered and put into operation in the country, and thus oil production in 1941 amounted to 23.6 million barrels. tons, which was 76% of the USSR’s oil production at that time.
The basis of the world’s first offshore oil production is November 7, 1949, the day when 100 tons of oil was put into operation daily from a 942 m deep well in the Oil Rocks.
The 3rd stage of development of Azerbaijan’s oil industry covers 1950-1969. At this stage, new oil and gas fields are being discovered and put into operation as a result of the intensification of exploration for new oil and gas fields at sea and on land. In addition, for the first time in the world, the first offshore oil field was built and put into operation, thus laying the foundation of the city of Oil Rocks.
Stage IV is characterized by the fact that since 1969, the oil and gas industry, like all sectors of the national economy of Azerbaijan, has entered a period of high dynamic development.
Until now, the existing equipment for drilling oil wells in the offshore basin allowed to work only to a depth of 40 meters, and most of the existing oil and gas fields have been discovered at this depth. In order to increase production, there is a need for new modern equipment for the discovery of deeper oil and gas fields at sea. For this reason, as a result of the initiative of the national leader of the Azerbaijani people Heydar Aliyev, in the 70s and 80s, Azerbaijan was provided with 75 types of cranes, pipelines, seismic, passenger, etc. ship types were brought. The 2,500-ton Azerbaijan crane ship has been launched in the Caspian Sea. In addition, modern technical equipment was obtained for geological exploration in the Caspian Sea basin at a depth of 70 meters and then 200 meters. As a result, 8 new oil and gas fields were discovered and oil reserves doubled and gas reserves tripled.
The 5th stage is characterized by the independence of Azerbaijan from the USSR, and the beginning of the export of Azerbaijani oil and gas through pipelines, attracting new foreign investment as an independent state.
