Azerbaijan State Oil Company

State Oil Company of Azerbaijan Republic is one of the largest oil Companies in the world. 

State Oil Company of Azerbaijan Republic was established on the basis of Azerneft State Concern and Azerneftkimya Production Association under the 13.09.1992 Decree of the President of Azerbaijan Republic Haydar Aliyev. To realize the use of oil resources of Azerbaijan Republic on the basis of a single state policy, to improve management structure of oil industry, to ensure the development of fuel-energy complex.

In general, “Azerneft” that combined Azerbaijan oil industry in various periods, was under the control of different republic and union organizations depending on the features of enterprices it united and managed as a trust or association of Union importance (Azerbaijan SSR People’s Comissar Soviet, USSR General National Economy Council, USSR Ministry of heavy industry, Azerbaijan SSR National Economy Council) and was called “Azerneftkomite”, “Azerneftkombinat” (later divided into “Azerneft”, “Azerneft zavodlar and neftcixarma”, “Azerneftmashinqayirma Associations”) and “Azerneftcixarma” Association. The company includes two oil refineries, several international oil and gas pipelines and engineering companies. SOCAR is currently the 68th largest company in the world for its capital.

SOCAR deals with the exploration development of offshore and onshore oil and gas fields, throughout the Republic preparation, procession and transportation of oil, gas and gas condensates, and with the sale of oil and gas products in the local and foreign market as well. The company also conducts great scientific-research and project activities currently, in Azerbaijan there are 5 t oil-rich deposits and 18 of them are in the Azerbaijan sector of the Caspian, the rest are onshore fields.

In general, the Caspian basin has 30 billion tons of oil, and 18-20 trillion cubic meters of gas resources, and this compreses 15% of the hydrocarbon resources of the world. Azerbaijan sector of the Caspian has 3-5 billion tons of oil and 5 trillion cubic meters of gas resources.

SOCAR has representative offices in several cities: Istanbul, Teheran, Astana, Bucharest, Frankfurt, Geneva, London, Vien, Tbilisi, Kiev. The company plans to build petrochemical processing complex in Romania. The products of this plant will be sent to European countries. SOCAR Representative offices in Germany and Austira co-operate with European companies in the direction of realization of Nabucco project.

SOCAR Trading SA was founded as the subsidiary company of SOCAR in Switzerland in 2008. Its main function is to organize sale of Azerbaijan oil in Europe. Financial fund of the company is 5 mln Swiss Franks.

SOCAR plans to open 17 petrol filling stations in Ukraine till the end of 2011. The company will open 300 petrol filling station in Ruminia till 2015.

Another subsidiary company of SOCAR is “SOCAR energy G. LLC”, founded in 2006. The company operates in Georgia. Main line of work of “SGE” LLC is the wholesale and retail sales of oil, the import of oil and oil products, and of liquefied gas to the country, the construction of oil terminal and reservoirs. The company controls 72% of oil sale and 61% of diesel sale in Georgia. Moreover, Kulevi oil terminal belongs to the comp. Every SOCAR imports 20000 tons of oil products and month 15000 tons of gasoline to Georgia. Until now, the company has invested 400 mln USD to the Georgian economy. In addition SOCAR has been the greatest taxpaying company in Georgia for 3 consequent years (2008, 2009, and 2010).

Only in 2010, the amount of tax paid by SOCAR to the Georgian budget was equal to 100 million USD. Moreover, SOCAR opened several petrol filling stations in Georgia. Currently, there are up to 60 petrol filling stations in Georgia that belong to SOCAR. In 2010, “SOCAR Energy Georgia” was agreed to be main sponsor of Georgian Football Federation. SOCAR put into operation its 66th petrol filling station in Georgia on April 12, 2011.

Umeo – provides the transportation of Azerbaijan oil to the Novorossiysk port via Baku-Novorossiys pipeline.

Azfen BM – Joint Enterprise of SOCAR.

SOCAR Cape – Joint Enterprise of SOCAR.

SOCAR has joint projects with several companies of the world with the purpose of effective production of offshore and onshore oil and gas deposits. Up to this day, SOCAR has signed 26 agreements with more than 30 companies of 20 world countries on the joint development of Azerbaijan oil and gas fields. “Azeri-Chirag-Guneshli”, “Shahdeniz” Baku Tbilisi Jeyhan and South Caucasus gas pipeline projects are more significant for their global importance. “Azeri-Chirag-Guneshli” and “Shahdeniz” projects, that are the focees attention of the world, are realized namely offshore in the Azerbaijan sector of the Caspian. Complete development of the field is realised on 3 phases (stages) according to the cantact. Phase – 1 covers the development of “Azeri” field’s control parts, Phase – 2 project includes the development of eastern and western parts of the “Azeri” field, Phase – 3 covers the complete development of “Azeri”, “Chirag” fields and the deepest parts of the “Guneshli” field.