Azerbaijan Oil Production
By the beginning of the 20th century, nearly 50% of the world's oil production was coming from this region.
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Azerbaijan Oil History -As early as the 10th century, wells were being dug and by the 1500s, much of Europe became aware of the area's incredible oil and gas deposits. The world's first offshore wells and machine-drilled wells were made near Baku in 1846. Seven years later, the exploration and development of oil began in earnest on the Absheron Peninsula.
By 1900, Baku had 3,000 oil wells, and became renowned world-wide as the "black gold capital." In 1920, the Bolsheviks took over Azerbaijan and seized all private property, which placed the republic's entire oil industry under Soviet Union control. Twenty years later, Azerbaijan was producing 23.5 million tons of oil. The Baku oil fields began major international development in 1994 with the signing of what was then known as the "deal of the century."
The first big pipeline, the Baku-Tbilisi-Ceyhan pipeline, was opened in 2006, bringing oil directly to the Turkish Mediterranean port of Ceyhan. For more information, visit www.azerb.com/az-oil.html
Azerbaijan Oil Revenues -The Azerbaijan International Operating Company (AIOC) signed an 8 billion Euro, 30-year contract in 1994 to develop three fields: Azeri, Chirag, and Gunashli. Reserves in these sections were believed to be in the range of 3 to 5 billion barrels with revenue expected to be approximately 80 billion Euros through 2024.
Whatever the exact number, Azerbaijan will collect 80% of the total amount. From 1997 through 2001, the AIOC, which is run by BP, had produced a staggering 133.5 million barrels of oil. Since 1996, more than $4 billion has been invested in Azerbaijan's oil sector. It is expected that that amount will eventually exceed $60 billion. For more information, visit www.azerb.com/az-oil.html
Azerbaijan Oil Pipelines -Azerbaijan's pipelines include the Baku-Novorossiisk, which delivers oil to the Russian Black Sea, the Baku-Supsa, which brings product to Georgia's Black Sea coast, and the Baku-Tbilisi-Ceyhan, which is the chief outlet for the Azeri-Chirag-Gunashli field in the Caspian. A regional pipeline and transit system in Azerbaijan allows for greater productivity.
Oil is being shipped across the Caspian from Kazakhstan and Turkmenistan to the port of Baku where it will then continue on via rail and pipeline to the Black Sea. Shipping volumes have increased dramatically since 1996 when 2,000 barrels per day was the limit.
For more information, visit www.azerb.com/az-oil.html