Azneft PU
Azneft Production Union (PU), one of the important structural units of SOCAR, is involved in the development of fields included in the company’s balance sheet, the operation of 2 gas storage areas in the country, the purification of gas supplied to consumers, the repair and rental of various oil field equipment, including numerous technological facilities and communications. It operates in the direction of ensuring technical and economic efficiency of oil and gas extraction through infrastructure. The title of Azneft PU has changed several times. After the establishment of Soviet power in Azerbaijan, a new economic policy was implemented in the country, and according to the decree of the Revolutionary Committee dated the 24th of May 1920, the country’s oil industry was nationalised. The Azerbaijan Oil Committee (Azneftkom) established under the National Economic Council of the Azerbaijan SSR was authorised to conduct centralised management of the oil industry and increase production, and on the 1st of September 1921, Azneftkom was replaced by the Azerbaijan State Oil Industry Union.
In that period, the organisation had representative offices in Moscow, Petrograd, Kharkiv, Tashkent, Berlin, Marseille, Paris, London, New York and Rasht. The organisation of Azerneftsindicat, which controls the sale of oil products, laid the foundation for the establishment of relationships with Iran, Afghanistan and other countries. Starting from 1922, production was increased as a result of applying more advanced technologies. Azerneft signed an agreement with Standard Oil to purchase technical equipment and other products, and also received a license from UK’s Gikkers Limited, to manufacture the technical equipment of the first cracking plant in Azerbaijan. The Ministry of Oil Industry of the Azerbaijan SSR (1954-1959) and the Ministry of Oil Extraction Industry of the Azerbaijan SSR (1965-1970) were created and operated on the basis of this institution, which was known as “Azerneftkomita”, “Azerneftkombinat”, “Azerneftchikharma” Production Association, “Azerneft” and other names in different periods.
In 1949, with the discovery of the legendary Oil Rocks field, oil production began in the open sea. In this regard, in 1949, in order to speed up the design, construction and operation of offshore oil and gas fields, the State Scientific Research Project Institute “Denizneftgazlayiha” (it was part of Azneft PU until 2007) was founded. In 1971, Azerbaijan produced over one billion tons of oil as a result of the discovery and exploitation of new fields both offshore and onshore. In the 1970s and 1980s, semi-submersible floating drilling rigs “Shelf-2”, “Shelf-3”, “Shelf-4” and “Shelf-5”, as well as pipe laying ships “Süleyman Vazirov”, “Israfil Huseynov”, crane ship “Azerbaijan” capable of lifting 2,500 tonnes, geophysical exploration ships and other vehicles were brought to Azerbaijan for the purpose of organising offshore operations. After purchasing technical equipment that allows work at a depth of 200 m at sea, rich oil and gas deposits were discovered in deep water areas - Gunashli (1979), Chirag (1985), Azeri (1987) and others. Azerbaijani oil workers involved in oil exploration in all sectors of the Caspian Sea discovered up to 350 promising structures. In general, specialists of Azneft PU with a rich scientific and technical experience have rendered great services in the creation and development of the oil industry not only in Azerbaijan, but also in other countries.
After Azerbaijan regained its state independence in 1991, Azerineft State Concern was established according to the Decree issued by the President of the Republic of Azerbaijan on the 3rd of December 1991. In order to use oil resources in accordance with a government policy, to improve the oil industry administration and to ensure the development of the fuel-energy complex, on the 3rd of September 1992, the President of the Republic of Azerbaijan issued a decree to establish Azerbaijan State Oil Company of the Republic (SOCAR) on the basis of Azerineft State Concern and Azerneftkimya PU.
At present, oil and gas production departments of Oil Rocks, 28 May, N. Narimanov, Absheronneft, Siyazanneft, Bibiheybatneft, A.J. Amirov, as well as the Gas Processing Factory, Gas Storage Operation Department, Diving Equipment Repair and Rental Experimental Production Facility, Diving Service, Material Technical Supply Department, Specialised Oil Mining and Special Technical Departments No. 1 and 2 operate under Azneft PU. According to the reports as of the 1st of January 2024, Azneft operates 49 oil and gas fields, including 21 offshore and 28 onshore. At this time 28 of them (13 offshore, 15 onshore) are operating.