"Chevron" delegation at Sangachal Terminal

A delegation led by Derek Magness, executive director of the Kazakhstan-based Eurasia Division of U.S. energy giant Chevron, visited Azerbaijan's Sangachal Terminal on Tuesday. The visit was part of ongoing efforts to explore alternatives to the Caspian Pipeline Consortium (CPC) route amid increasing challenges related to the Russian-Ukrainian conflict.

Magness and his delegation were accompanied by the management of SOCAR Midstream Operations during their tour of the terminal, one of the largest oil and gas processing facilities in the region. Givami Rahimli, bp's senior advisor on government affairs, welcomed the guests and provided a detailed overview of Azerbaijan's long-standing history in the oil industry, highlighting the country's pioneering role.

Rahimli recounted key milestones, such as the world’s first industrial oil well drilled in 1846 in Bibiheybat, Baku, the launch of the world’s first oil tanker “Zarathustra” in 1878, and the construction of the Baku-Batumi oil pipeline in the late 19th century. Azerbaijan also gained global recognition for developing the world’s first offshore oil platform in 1949 at the Oil Rocks field in the Caspian Sea, which earned a place in the Guinness World Records.

Rahimli emphasized that following Azerbaijan’s independence in 1991, the country entered a new phase in its oil era. Working closely with international partners such as bp, Azerbaijan has since implemented significant oil and gas projects, creating critical infrastructure to enhance energy security across Europe and Asia.

The Chevron delegation toured the operational areas of the Sangachal Terminal, where they were briefed on the facility's technological processes. The terminal processes crude oil and natural gas from the Azeri-Chirag-Gunashli (ACG) oil field and the Shah Deniz gas field, with exports routed through key pipelines including the Baku-Supsa and Baku-Tbilisi-Ceyhan (BTC) pipelines, and the South Caucasus Pipeline.

The guests were also given a tour of the first pumping station of the BTC main export oil pipeline, which transports crude to the Mediterranean without passing through the Turkish Straits. The Control Management Center, which monitors and manages export pipelines, was showcased for its role in ensuring pipeline integrity and security.

In light of the ongoing war in Ukraine and rising insurance costs for oil shipments through the Black Sea, international oil companies, including Chevron, are stepping up efforts to diversify crude oil export routes. The BTC pipeline, starting from Sangachal, offers an alternative route to the Mediterranean, bypassing the complexities of the CPC route, which runs from southern Russia to the port of Novorossiysk.

The Sangachal Terminal plays a vital role in safeguarding the energy security of the broader Euro-Asian region, and as discussions on crude oil route diversification continue, Azerbaijan’s infrastructure remains a key strategic asset for global energy markets.