Today Azerbaijan celebrates "oilman"s day"

Today Azerbaijan celebrates a professional holiday "Oilman's Day."

The Oilmen's Day is celebrated in Azerbaijan since 2001. The holiday has been established by the presidential decree in honor of signing of the Contract of the Century - the project of development of Azeri-Chirag-Guneshli (ACG) offshore fields.

According to the tradition, several days before September 20, big enterprises of State Oil Company of Azerbaijan (SOCAR) organize various events and in the evening Azerbaijani pop stars give a concert at the Baku Boulevard. Today the event will take place at 5.00 p.m.

On this day SOCAR is going to hand its employees-oilmen the keys of new apartments.

The oil extraction started in Azerbaijan in 1871, though oil trade started in 1848. According to Azerbaijan State Statistical Committee, in 1871 the country extracted only 19,000 tons of oil. In 1884 Azerbaijani oilmen extracted already 1.46 million tons. In 1901 oil extraction exceeded 10 million tons (10,979 million). During this period half of world oil production fell to Azerbaijani oil. 

Later on oil industry of Azerbaijan experienced decline, because of unstable situation in the Russian Empire, beginning of the World War I and occupation of Azerbaijan Democratic Republic by the bolshevist Russia as well as establishment of absolute state control over the oil industry. The world oil price in gold equivalent was the highest when in early May 1920 oil industry of Azerbaijan was nationalized by the Bolsheviks. 

Azerbaijani oilmen managed to reach the production level of 10 million tons only in 1930. After 6 years the oil production volume was doubled up to 20.5 million tons. During the Soviet times the "production peak" is 23,541 million tons was reached in 1941, owing to intensive development of the fields, because the USSR was preparing to war against fascist Germany. In 1945 oil production dropped by 51.2% to 11,494 million tons.

Then oil extraction in Azerbaijan started growing after putting into operation of Neft Dashlary (Oil Rocks) offshore field in 1953. From 1963 to 1970 oil production stabilized in Azerbaijan at 20 million tons a year. From 1971 to 1985 oil production gradually declined to 12.5 million tons. From 1985 to 1987 oil production grew from 13.1 to 13.8 million tons. However, another continuous oil production decline started in 1988 and ended at 9 million tons only in 1997.

New era of Azerbaijani oil industry started since development of Chirag offshore field. In 1998 the country could already see the first fruits of cooperation with foreign companies on the basis of production sharing agreements (PSA). During a year oil production increased by 3.4 million tons.  Only at the expense of one platform installed on Chirag field, operated by BP company, Azerbaijan could increase production up to 15 million tons of oil a year. In 2005 the oil production started within the framework of development of a wide-scale development of offshore fields Azeri-Chirag-Guneshli (ACG). Since that time oil production grew in the country at a high pace and it continued till 2011. 

The oil production peak in Azerbaijan was in 2010, when the country extracted 50,838,000 tons of oil and condensate.

According to the forecasts, till 2020 the country plans to extract at least 40 million tons of oil a year. By September 1, 2012 only 280 million tons out of available 1.2 billion tons has been extracted on ACG.  In the coming 30 years Azerbaijan will have no problems with oil supply and it will be able to continue exporting its oil.-0-