After the signing of the Contract of the Century in 1994, one of the challenges was the export of crude oil to world markets. For this purpose, as a result of negotiations with neighbouring Russia and Georgia, agreements were signed on the transportation of oil from the ACG field (Azeri, Chirag and Gunashli fields) to the Black Sea ports via the Northern and Western routes, and the projects were launched. The northern route envisages the Baku-Novorossiysk oil pipeline. The 231 km section of the pipeline passing through the territory of the Republic of Azerbaijan was built in 1996 while the 1,116 km Russian section was built in 1983. However, the direction of this part was later changed in 1995-1996 by SOCAR and AIOC (Azerbaijan International Operating Company). $60 million was spent on the rerouting. Finally, on the 25th of October 1997, the Baku-Novorossiysk oil pipeline with a total length of 1,347 km was put into operation.
The pipeline with a total diameter of 720 mm has a capacity of 6 million tons per year or 105,000 barrels per day. The pipeline has 3 pumping stations: Sangachal, Sumgayit and Siyazan. In addition, the pipeline’s measuring station is located in Shirvanovka. The Baku-Novorossiysk oil pipeline starts from the Sangachal oil terminal, which has four large oil storage tanks (25,000 barrels each). The last point of delivery of crude oil is the port of Novorossiysk, with a capacity of 34 million tons of oil and oil products per year.
The pipeline, which began operations on the 25th of October 1997, transported 1.5 million tons of oil by January 1999, just over a year later. Subsequently, the volume of oil transportation increased year by year. In 2005, 4.1 million tons of oil were exported via this route. Oil loaded from the port of Novorossiysk is exported to Italy, Romania, Bulgaria, China, Croatia, France, Spain and other countries. As a result of the commissioning of the Baku-Supsa (1999) and Baku-Tbilisi-Ceyhan (2006) oil pipelines, which are more cost-effective in terms of transportation costs, oil transportation via the Baku-Novorossiysk route has decreased, but has not lost its relevance.