The State Oil Company of Azerbaijan Republic (Azerbaijani: Azərbaycan Respublikası Dövlət Neft Şirkəti), largely known as SOCAR is fully state-owned national oil and gas company headquartered in Baku, Azerbaijan. The company produces oil and natural gas from onshore and offshore fields in the Azerbaijani segment of the Caspian Sea. It operates the country's only oil refinery, one gas processing plant and runs several oil and gas export pipelines throughout the country. It owns fuel filling station networks under the SOCAR brand in Azerbaijan, Turkey, Georgia, Ukraine, Romania and Switzerland.
|Industry||Oil and gas|
|Founded||13 September 1992|
|Europe & Asia|
|Rovnag Abdullayev (President)|
|Revenue||AZN 120,5 bn (2017)|
|AZN 2.5 bn (2017)|
|AZN 3.0 bn (2017)|
|Total assets||AZN 90.3 bn (2017)|
|Total equity||AZN 30.9 bn (2017)|
Number of employees
|Subsidiaries||BOS Shelf, AZFEN, Petkim, Star Refinery, Baku Shipyard LLC, Interfax Azerbaijan, Ateshgah Insurance, AzLAB, EKOL Engineering|
Azneft, a business that integrated the Azerbaijani oil industry was created after the Bolshevik Revolution through the nationalization of the Azerbaijani oil industry. It was subordinate to different organizations in the former Soviet Union and the Azerbaijan Soviet Socialist Republic, depending on its organizations' characteristics at different times and was known as Azerneftkomite, Azerneftkombinat (later divided into the Azerneft, Azerneftzavodlar and Azerneftmashingayirma syndicates), and Azerneftchikharma syndicates, and so forth. In 1954–1959, the Ministry of the Oil Industry of the Azerbaijan SSR and in 1965–1970, the Ministry of Oil Production Industry of the Azerbaijan SSR were established on the basis of Azerneft. In August 1970, it was renamed back to Azerneft.
As the Republic of Azerbaijan gained independence, Azerineft State Concern was established on 3 December 1991. The State Oil Company of the Azerbaijan Republic (SOCAR) was created on 13 September 1992 by the merger of Azerbaijan's two state oil companies, Azerineft State Concern and Azerneftkimiya Production Association according to the decree of then president Abulfaz Elchibey. In 1994, the Onshore and Offshore Oil and Gas Production Association were established as part of the State Oil Company. In 2003, the Onshore and Offshore Oil and Gas Production Association were merged to form the Azneft Production Union.
In December 2005, the former head of the Baku Oil Refinery and a member of the Azerbaijani parliament, Rovnag Abdullayev, was appointed President of SOCAR. He replaced Natig Aliyev, who was named Azerbaijan's Minister of Industry and Energy.
SOCAR's activities are exploration, preparation, exploitation of onshore and offshore oil and gas fields in the Azerbaijan Republic, transportation, processing, refining and sale of oil, gas, condensate and other related products. SOCAR's exploration activities cover the prospective offshore fields in the Azerbaijani sector of the Caspian Sea. The current largest fields being explored are Shafag-Asiman, which is explored with BP, and Absheron natural gas fields which is being explored together with BP and Total respectively.
In October 2010, SOCAR and BP signed a new production sharing agreement on development and joint exploration of Shafag-Asiman.
In December 2014, SOCAR signed SWAP PSA on the joint exploration and development of potential prospects in the shallow water area around the Absheron peninsula together with BP. Besides, SOCAR holds exploration activities in Umid and Bulla Deniz gas fields on its own. In 2016, SOCAR build the new platform No. 18 and produced 6.27 billion barrels (997,000,000 m3) of gas in the same year.
Azerbaijan has 57 oil fields, 18 of which are offshore, in the Azerbaijani sector of the Caspian Sea. The essential part of the company's revenue comes from the giant ACG oil field complex and Shah Deniz gas field. In September 1994, SOCAR entered into a Production sharing agreement (PSA) with the foreign oil companies led by BP for the 30-year development of the ACG oil field which was later known as the Contract of the Century. Two years later Shah Deniz PSA was signed. As of 2014 SOCAR holds 11.6% of the ACG shares and 16.7% of the Shah Deniz shares. Moreover, SOCAR operates a number of onshore fields on its own which is the main source of the domestic supply. In 2013, 43.48 million tons (318.74 million barrels) of oil was produced in Azerbaijan, of which 8.31 million tons (60.95 million barrels) belong to SOCAR. In the same period, Azerbaijan's natural gas production reached record high of 29.46 billion cubic metre of which SOCAR shares constitute 7.14 billion cubic metre of it.
SOCAR and the consortium led by BP signed a letter of intent for future development of the Azer-Chirag-Gunashli field between SOCAR on 23 December 2017. According to amended and restated Azeri-Chirag-Deepwater Gunashli Production Sharing Agreement (PSA) signed on 14 September 2017, development of this field will continue until 2050 and equity share of SOCAR will increase in the ACG PSA. It was called as the Contract of the New Century by the group chief executive of BP, Bob Dudley.
On 19 April 2019, SOCAR president Rovnag Abdullayev and BP's regional president for Azerbaijan, Georgia, and Turkey, Garry Johns signed a contract cost $6 billion. The final investment decision on the Azeri Central East (ACE) platform, which is planned to be built on the Azeri-Chirag-Gunashli (ACG) block, has been adopted at the signing ceremony. The construction is scheduled to start in 2019, and the completion is scheduled for mid-2022.
The pipelines deliver the ACG and Shah Deniz hydrocarbons from Sangachal Terminal located in 45 km south of Baku to Turkey and Europe. They pass through the borders of three countries: Azerbaijan, Georgia and Turkey. The share of SOCAR in the BTC and SCP is 25% and 16.7% respectively. In addition, SOCAR is the major shareholder with 58% ownership in the Trans-Anatolian gas pipeline (TANAP) and with 20% ownership in Trans Adriatic Pipeline (TAP) which are meant to transmit some 16 bcma of gas produced from the second phase of Shah Deniz gas field with 10 bcma of that going to Europe and 6 bcma to Turkey. The TAP is seen as a competitor to Russia's South Stream because of diversification of gas supplies to Europe.
The company has stakes in the relatively low-capacity Baku-Supsa Pipeline and Baku-Novorossiysk Pipeline. The Azerbaijani part of the Baku-Novorossiysk Pipeline is operated by SOCAR, whereas Baku-Supsa Pipeline's operator is BP. Moreover, SOCAR operates Dubendi Oil Terminal in Azerbaijan and Kulevi Oil Terminal in Georgia which are important for transportation and export.
SOCAR has two oil refineries and one gas processing plant. Azerneftyagh Oil Refinery specializes in the production of fuels and oils, producing gasoline, kerosene and diesel distillates, various oils (industrial, motor, transformer etc.) and asphalt. All fuel distillates produced there are sent to Heydar Aliyev Baku Oil Refinery for redistillation. The refinery processes 21 out of 24 grades of the Azerbaijani crude. It meets the country's entire demand for petroleum products and 45% of its petroleum products are exported. The Gas Processing Plant produces processed gas, liquefied gas and natural gasoline. In 2010, the plant produced 4 bcm of processed gas, 24,800 tons of liquefied gas and 26,700 tons of natural gasoline.
Retail station operationsEdit
The first fuel station of the company under the brand name SOCAR was opened in neighboring Georgia in 2008, before any in its home country. The fuel stations in Georgia are operated by the subsidiary of the company SOCAR Georgia Petroleum. As of 2014 there were currently more than 110 filling stations in Georgia making it the largest retail fuel station network of SOCAR. In Azerbaijan, the company operates a few (less than any other country where it operates) filling stations under the brand name SOCAR since 2010. It is the third largest network of retail stations in Azerbaijan after Azpetrol and Lukoil. In 2011, the first retail station of SOCAR was opened in Ukraine. In October 2014 the number of the SOCAR stations in Ukraine reached 40.
In 2011, the company entered into the Romanian market acquiring initially 90% and at a later stage the rest 10% of the stake in Romtranspetrol. In September 2014, SOCAR launched its 30th filling station in Romania. In November 2011, SOCAR bought ExxonMobil's Swiss subsidiary Esso Schweiz for an undisclosed amount. Along with the acquisition SOCAR became the owner of a network of more than 160 filling stations operating under the brand name Esso across the country. The first SOCAR premium fueling station in Switzerland after the rebranding was opened in September 2012 in Zurich. All the operations in Switzerland are managed and led by SOCAR Energy Switzerland.
In December 2007, SOCAR Trading was incorporated and became the marketing division of SOCAR. Headquartered in Geneva, SOCAR Trading offers ultra-low-sulfur-diesel, liquefied petroleum gas and markets SOCAR crude oil export volumes from Ceyhan, trades third party crude and oil products and assists SOCAR with international investments in logistics, downstream and sales. Alongside its field of activity in marketing and sales, SOCAR Trading assists SOCAR in expanding SOCAR's assets as well.
Azerigaz Production Union (PU) has been carrying out transportation, distribution and sale of natural gas in the territory of the Republic of Azerbaijan. The Union has also been ensuring transportation of natural gas produced by SOCAR to the Islamic Republic of Iran, Georgia and the Russian Federation.
Main directions of SOCAR Georgia Gas activity comprise import into the Georgian market and sale of natural gas, as well as construction and rehabilitation of gas pipelines. In 2010, the company was honoured with 'Best Company of the year' for active participation in 'Gas provision of all villages' program of the Georgian President.
Baku Shipyard LLC joint venture was founded on 10 May 2011 under the laws of Republic of Azerbaijan, by the State Oil Company of Azerbaijan (SOCAR) owning 65%, Azerbaijan Investment Company (AIC) 25%, and Keppel Offshore Marine (KOM) 10%, has developed and put into operation the most modern shipbuilding and ship-repair facility in the Caspian Sea.
Opening ceremony of Star Oil Refinery was held on 19 October in Izmir, Turkey with the participation of Ilham Aliyev and Recep Tayyip Erdogan. Since the beginning of the project, US$1 392.8 million has been allocated to finance the Azerbaijani share on the STAR project within the framework of the SOFAZ's budget execution.
SOCAR's headquarter is located at a 42-floor SOCAR Tower which was under construction since 2010 and completed in late 2016. It is the tallest skyscraper in the Caucasus with 209m of height. Apart from the head office, SOCAR's supporting offices are dispersed across the city.
The first representative office of SOCAR was established in London in 1994. Now the company has offices in London, Frankfurt am Main, Geneva, Vienna, Bucharest, Istanbul, Kyiv, Tbilisi, Astana and Tehran.
On 17 August 2013, a gas blowout occurred at the platform No.90 of Bulla Deniz field. As a result, the platform burned from 17 August to 24 October 2013. On 23 October 2014, four workers were killed and three workers were in injured when during repair works on the platform No. 441 at the Narimanov field a small wagon-house fell into the sea which damaged a gas pipeline and caused a fire. Altogether, fourteen SOCAR's workers were killed in oil and gas platforms accidents in 2014.
On 4 December 2015, three workers of SOCAR were reported missing after part of the living quarters at Oil Rocks fell into the sea due to a heavy storm. At the same day, seven workers were killed, 23 reported missing, and 33 were rescued and evacuated when a fire broke out on the platform No. 10 at the western section of the Gunashli oilfield. (As of January 2016, a total of 10 bodies have been found, leaving 20 people unaccounted for.)
Since 2012, SOCAR has sought to avoid U.S. sanctions aimed at Iran, its partner in a 28 billion dollar Caspian Sea natural gas project.  SOCAR funded an all-expenses-paid US-Azerbaijan "energy conference" in Baku for 10 members of Congress and 32 staff members which took place on 28 and 29 May 2013. It used two Houston based non-profit organizations, the Assembly of the Friends of Azerbaijan (AFAZ) and the Turquoise Council of Americans and Eurasians, both run by Kemal Oksuz as conduits.
In May 2013, UEFA announced that SOCAR is an Official Sponsor of the 2016 UEFA European Football Championship final tournament, and acquires rights in connection with the European Qualifiers, which run from 2014 to 2017, and which relate to the qualification matches for UEFA Euro 2016 and the 2018 FIFA World Cup. SOCAR also becomes an Official Sponsor of the 2016 UEFA European Under-17 Football Championship, which will take place in Azerbaijan.
In September 2014, SOCAR signed an agreement to become an Official Partner of Baku 2015 European Games SOCAR is the sponsor of Association of Football Federations of Azerbaijan and Azerbaijani football club Neftchi Baku.
- "SOCAR, Consolidated Financial Statements (IFRS), 31 December 2017". SOCAR. Retrieved 25 April 2019.
- Azerbaijan Since Independence. M.E. Sharpe. ISBN 9780765630049. Retrieved 11 June 2016 – via Google Books.
- "Azerbaijan portal". azerbaijan.az. Archived from the original on 8 August 2017. Retrieved 15 October 2017.
- "History of SOCAR, Official web page of the company, retrieved on July 7, 2015". socar.az. Archived from the original on 24 November 2014. Retrieved 15 October 2017.
- "BP, Socar to Begin Exploratory Drilling in Shafag-Asoman Gas Field in Caspian". Caspian Policy Center. 16 January 2019. Retrieved 8 April 2020.
- "Petrofac-SOCAR JV to service Absheron field". AzerNews. 20 August 2019. Retrieved 8 April 2020.
- "Shafag-Asiman". BP. Retrieved 8 April 2020.
- "SWAP to contribute to nearshore exploration success in Caspian basin". AzerNews. 2 June 2017. Retrieved 21 April 2020.
- "SOCAR Plans to Annually Produce 300 Mcm of Gas from New Bulla Deniz Well". Caspian Barrel. 27 January 2017. Retrieved 21 April 2020.
- "SOCAR to launch new platform on Bulla-Deniz field". AzerNews. 4 October 2016. Retrieved 21 April 2020.
- "SOCAR Activities, Production, Azeri Chirag Deep Water Gunashli". socar.az. Archived from the original on 19 October 2014. Retrieved 15 October 2017.
- "SOCAR Economics and Statistics, Oil production, access date: 7 July 2015". socar.az. Archived from the original on 14 April 2014. Retrieved 15 October 2017.
- "SOCAR Economics and Statistics, Gas production, access date: 7 July 2015". socar.az. Archived from the original on 19 October 2014. Retrieved 15 October 2017.
- "SOCAR və ABƏŞ AÇG yatağının 2050-ci ilədək gələcək işlənməsinə dair razılaşmanın prinsiplərini imzaladılar" (Press release) (in Azerbaijani). BP. Retrieved 20 September 2017.
- "The Azerbaijan government and co-venturers sign amended and restated Azeri-Chirag-Deepwater Gunashli PSA" (Press release). BP. Retrieved 20 September 2017.
- "Resource Global Network | BP and partners sign Azerbaijan oil field extension deal". resourceglobalnetwork.com. Retrieved 20 September 2017.
- "BP, SOCAR Sign Deal to Build New Azeri Oil Exploration Platform". The New York Times. Reuters. 19 April 2019. ISSN 0362-4331. Retrieved 24 April 2019.
- Bagirova, Nailia (19 April 2019). "BP, SOCAR sign deal to build new Azeri oil exploration platform". Reuters. Retrieved 24 April 2019.
- "BP leads $6bn of fresh investment in Azeri oil project". Financial Times. 19 April 2019. Retrieved 24 April 2019.
- "BP and SOCAR sign new Azeri oil deal". Arab News. 19 April 2019. Retrieved 24 April 2019.
- "Resource Directory". Azerbaijan International. Archived from the original on 1 March 2010. Retrieved 13 January 2010.
- "EBRD. SOCAR – South Caucasus Gas Pipeline Project Summary Info". ebrd.com. Archived from the original on 20 August 2008. Retrieved 15 October 2017.
- Chazan, Guy (16 December 2013). "Total and Statoil pull out of Tanap gas pipe deal". Retrieved 11 June 2016 – via Financial Times.
- "Germany and France withdraw from Trans Adriatic Pipeline AG, cesd.az, 1 October 2014, access date: 19 October 2014". cesd.az. Archived from the original on 20 October 2014. Retrieved 15 October 2017.
- "SOCAR Activities, Refining, Gas Processing Plant". socar.az. Archived from the original on 14 November 2014. Retrieved 15 October 2017.
- AzerNews. "SOCAR opens more filling stations in Georgia, Romania". Retrieved 11 June 2016.
- "Number of SOCAR petrol stations in Romania exceeds company's filling station net in Azerbaijan". Archived from the original on 4 March 2016. Retrieved 11 June 2016.
- "SOCAR's filling stations in Ukraine reach 40". Retrieved 11 June 2016.
- "SOCAR expands its gas station network and plans new investments". Retrieved 11 June 2016.
- "SOCAR opens its 30th filling station in Romania, SOCAR News archive, 17 September 2014, access date: 7 July 2015". socar.az. Archived from the original on 22 September 2014. Retrieved 15 October 2017.
- "SOCAR acquires Esso Schweiz from ExxonMobil – SOCAR ENERGY Switzerland". Retrieved 11 June 2016.
- "SOCAR eröffnet erste Tankstelle". Auto & Wirtschaft. 25 September 2012. Retrieved 21 April 2020.
- "SOCAR opens its first premium service station in Switzerland". SOCAR. 26 September 2012. Retrieved 21 April 2020.
- "Socar Trading SA". Bloomberg. Retrieved 23 April 2020.
- "Country increases LNG sales". AzerNews. 13 June 2019. Retrieved 23 April 2020.
- "Gas injection volume by Azerbaijan's Azerigaz Production Union reaches record high". AzerNews. 25 November 2019. Retrieved 23 April 2020.
- "Baku Shipyard". www.bakushipyard.com. Retrieved 15 October 2017.
- CBC.AZ. "SOCAR's Star Refinery to be launched on October 19". CBC. Archived from the original on 1 December 2018. Retrieved 30 November 2018.
- "STAR oil refinery inaugurated". Report News Agency. Retrieved 30 November 2018.
- "SOCAR Representative offices". socar.az. Archived from the original on 23 November 2014. Retrieved 15 October 2017.
- Gorst, Isabel (24 January 2008). "State Oil Company: Burning ambition to compete on global stage". Financial Times. Retrieved 13 January 2010.
- "SOCAR office in Romania officially inaugurated". Romania News Watch. 13 July 2007. Retrieved 13 January 2010.
- Jafarova, Aynur (24 October 2013). "Fire at emergency well in Bulla Deniz field extinguished:source". Azer News. Retrieved 5 December 2015.
- Lewis, Josh (3 November 2014). "Missing Socar worker confirmed dead". Upstream Online. NHST Media Group. Retrieved 5 December 2015.
- "SOCAR recovers body from October rig accident". UPI. 3 November 2014.
- Bagirova, Nailia (5 December 2015). "One worker killed, 30 missing after Azeri oil rig fire: government". Reuters.
- "Oil workers 'missing' at Socar platform". Upstream Online. NHST Media Group. 4 December 2015. Retrieved 5 December 2015.
- "Fire on Azerbaijan's offshore Guneshli field continues". Cihan News Agency. 5 December 2015. Archived from the original on 8 December 2015.
- Agayev, Zulfugar (5 December 2015). "Fire at Oil Field in Azerbaijan Kills 30 People, Official Says". Bloomberg News.
- Scott Higham, Steven Rich, Alice Crites (13 May 2015). "10 members of Congress took trip secretly funded by foreign government". Washington Post. Retrieved 28 May 2015.CS1 maint: multiple names: authors list (link)
- Will Tucker, Lise Olsen, and Kevin Diaz (13 May 2015). "U.S. House Ethics panel probes Texas lawmakers' Azerbaijan trip". Houston Chronicle. Retrieved 29 May 2015.CS1 maint: multiple names: authors list (link)
- "SOCAR signs as Official Sponsor for UEFA national team competitions". uefa.com. Archived from the original on 21 October 2014. Retrieved 15 October 2017.
- "Baku 2015 European Games Signs SOCAR As Official Partner". baku2015.com. Archived from the original on 25 September 2014. Retrieved 15 October 2017.
- "One weekend, three games, Worldwide". BabaGol. 23 April 2015. Retrieved 23 April 2020.
- "SOCAR signs as Official Sponsor for UEFA European Football Championship". APA Group. 17 May 2013. Retrieved 23 April 2020.
- "SOCAR becomes title sponsor of F1 Azerbaijan Grand Prix 2019". vestnikkavkaza.net. 23 April 2019. Retrieved 25 May 2019.
|Wikimedia Commons has media related to SOCAR.|