HISTORY OF AZERBAIJAN OIL AND GAS
Azerbaijan Republic State Oil Fund (SOFAZ) was founded to collect oil revenue under a single fund. This has been a firm step towards ensuring a fair share of the natural assets among present and future generations.
By acquiring Azerigaz Inc. and Azerikimya State Company, SOCAR built its own fuel distribution network and invested in the first oil-gas processing and petrochemicals complex. In addition, by investing in two urea plants, in Sumgait, Azerbaijan, and Georgia, SOCAR took firm steps toward becoming a company offering integrated values on international standards.
On May 28, the first oil reached the Ceyhan port through the Baku-Tbilisi-Ceyhan Main Export Pipeline. On July 13, the official opening ceremony of the pipeline was held at the Ceyhan port.
First-time gas was exported from Azerbaijan.
The Baku-Tbilisi-Erzurum “South Caucasian Gas Pipeline” was put to service.
The first time gas was produced from the Shah Deniz field.
Since 2008, SOCAR has carried out oil and oil products trade with SOCAR Trading based in Switzerland and via its rep offices in 8 countries (Singapore, London, Geneva, Dubai, Lagos, Monaco, Cairo, and Istanbul.)
Fujairah Terminal has been one of the critical projects initiated by SOCAR in Dubai.
Having taken a massive step in Türkiye as a sister country and strategic partner, SOCAR acquired PETKIM in 2008 and accelerated its operations in the country to make PETKIM one of the largest-scale production centers in Europe.
These investments include some gigantic projects like STAR Refinery with an 11-million-ton capacity, PETLIM Container Terminal (SOCAR Terminal) with a startup capacity of 1.5 million TEU, power plants with 1500 MW capacity, and liquidated gas storing facilities.
Undertaking another giant project, SOCAR signed an agreement with Korean National Oil Corporation and started an oil storage investment with 5.3 million barrels.
SOCAR built a fuel distribution chain comprised of 47 fuel stations in Ukraine, an important station in European and Balkan regions.
Furthermore, SOCAR invested in Georgia's oil, security, gas, and fuel distribution operations. Having 114 fuel stations in this country, the company operates under the SOCAR brand.
SOCAR also acquired ESSO (Exxon Mobil) fuel distribution brand that operates across a vast distribution network in Switzerland.
On June 26, the President of the Azerbaijan Republic, Ilham Aliyev, and the Prime Minister of Türkiye, Recep Tayyip Erdogan, signed the agreemnt regarding the Trans-Anatolia Gas in Istanbul Pipeline (TANAP) project.
With the acquisition of ESSO, SOCAR started to distribute fuel in Europe. Today, the company offers services with 150 fuel stations across Europe.
Operating also in Romania, SOCAR undertakes retail fuel sales and distribution with 32 fuel stations. In this country, the total volume of SOCAR’s retail and wholesome EURO 5 standard fuel sales and distribution is more than 100.000 tons/year.
SOCAR has been working on its project AGRI-LNG which involves delivering LNG to the Balkans, in collaboration with Georgian Oil and Gas Corporation- GOGC, Romanian gas producer Romgaz, and Hungarian energy company MVM.
On September 20, a stately ceremony to mark the 20th anniversary of the Contract of the Century and lay the foundation of the Southern Gas Corridor was held at the Heydar Aliyev Centre.
The foundation of the Trans-Anatolian Natural Gas Pipeline Project (TANAP) was laid with the participation of the Presidents of Türkiye, Azerbaijan, and Georgia. After the project was completed in 2018, it started to meet the increasing natural gas needs of Europe and Türkiye with the diversity of its resources and routes.
STAR Refinery was awarded the “Best Refinery Financing Deal of the Year” award by Project Finance International and Infrastructure Journal. It was chosen as the best refinery worldwide in 2015 by the votes of the readers of Hydrocarbon Processing magazine.
The first phase of the SOCAR Terminal was completed.
The Azerbaijan Government and co-venturers signed an amended and restated Azeri-Chirag-Deepwater Gunashli PSA (Production Sharing Agreement).
Inauguration of the STAR Refinery
TANAP, The Silk Road for energy, was opened in a exceptional ceremony held in Eskisehir under the auspices of Recep Tayyip Erdogan, President of the Republic of Türkiye, and attended by Ilham Aliyev, President of the Republic of Azerbaijan.
SOCAR Türkiye won the tender of 9 gas stations in Istanbul Airport, of which the first phase was opened on October 29 with a huge ceremony.
Trans Anatolian Pipeline Project (TANAP), which aims at increasing the security of the natural gas supply of Türkiye and diversifying supply sources, has been successfully connected with Trans Adriatic Pipeline.
The land of SOCAR Türkiye situated in Aliaga, Izmir, encompassing nearly all its investments, was announced as a Special Industrial Zone.
SOCAR Terminal started its operations.
The first naphtha produced by STAR Refinery was delivered to Petkim.
SOCAR has acquired EWE Türkiye Holding and its group of companies, which manages the German energy company EWE AG operations in Türkiye.
In December, SOCAR R&D and Innovation A.Ş. were established, and in June, it was entitled to receive the R&D Center certificate given by the Ministry of Industry and Technology.
SOCAR Türkiye completed a successful year in the fight against the COVID-19 epidemic, which affected the whole World.
As a result of the focus of its strategic investments in SOCAR Türkiye, The integration process was completed successfully among refinery, petrochemistry, energy, logistics, distribution, and storage.
SOCAR Türkiye has taken a new step to use human resources effectively and to increase excellence by providing efficiency in business processes and initiated the Integrated Business Center - serving all group companies.
The project "Single SOCAR, Single Flame," which aimed to implement in all of SOCAR Türkiye's group of companies, was activated in Bursagaz and Kayserigaz. The logos of these subsidiaries, which are integrated with the infrastructure and innovative practices of SOCAR, were also replaced with the flame of SOCAR.
SOCAR Türkiye was entitled to receive the "Reputable of the Year Award” in the energy field at The ONE Awards Integrated Marketing Awards, where the brands and stakeholders with the highest increase in reputation during the year are recognized.
The only company selected from Türkiye for the 'Global Lighthouse Network' by World Economic Forum was Petkim in 2020.
Petkim, STAR Refinery, and SOCAR Storage received the “COVID-19 Safe Production Certificate”.
The COVID-19 epidemic continued into 2021. as well. SOCAR Türkiye successfully completed this period thanks to its strong human resources, innovative approach in the area of technology and R&D, and agile flexible structure.
Within the scope of Project Earth, changes were made in the IT structure. Operational efficiency was strengthened, resource management was facilitated, and server security was increased. Systems were started to be monitored by including them in the central management and monitoring structure.
SOCAR R&D Gebze Process Systems Center was established in Gebze Technical University Technopark.
Breaking the record in its 57-year history by making a net profit of 5.5 billion TL, Petkim increased its sales in 2021 by %137 compared to 2020, to 28.7 billion TL.
SOCAR Türkiye's management buildings started to use “Green Energy.”
SOCAR Enerji Ticaret A.Ş. started selling “Green Energy.”
STAR Refinery, selected for the 'Global Lighthouse Network' of the World Economic Forum (WEF), became the first refinery in the World to receive this award.