Global changes that occurred in the world political life at the end of the 20th century brought independence for many countries, including Azerbaijan. 

With its rich natural resources and favorable geographical position, Azerbaijan has managed to attract the attention of the world community since the first years of its independence. Obtaining due positions on the world market as one of the main elements in country’s national security has set new requirements towards the oil strategy, including in oil transportation. The oil transportation system occupies a special place in the new oil strategy laid by Nationwide Leader  Heydar Aliyev. The demands for qualitative and quantitative export of Azerbaijani energy sources to the world markets have grown dramatically. 

Azerbaijan has a rich history of exploration and exploitation of huge oil and gas fields, their development, as well as oil transportation and refining. For example, a plant as well as the first tank for oil storage was built in the Surakhani settlement for production of kerosene from solid oil mud in 1859-1870. 

The first 12 km pipeline built in 1878 connected the oil field with a refinery.

Until 1889 the length of all pipelines connecting the oil fields with the Baku oil refineries reached 230 km. Up to 1mln tons of oil a year were transported via these pipelines at that time.

Construction of the Baku-Batumi pipeline with a capacity of 1mln tons a year and to the length of 833 km with 16 pumping stations started in 1897. The kerosene pipeline was fully commissioned on 26 March 1907.

During the following years the development of oil industry and the rapid growth in export of oil products from Azerbaijan prompted the need for the second pipeline between Baku and Batumi.

Construction of an oil refinery in Batumi started in 1927 while construction of the second 254mm diameter pipeline was launched in 1928.

Transportation of crude oil by this pipeline began already in 1930. During following years the expanded system of oil transportation turned into one of the inseparable spheres in oil industry.

Further development of oil industry in Azerbaijan, specific transportation of different oil brands to the oil refineries laid a ground for creation of an organization to deal in oil transportation. The Oil Pipelines Department became the last heir of the enterprise called the Oil Office. Currently, the Oil Pipelines Department has turned into a major specialized organization that ensures transportation of Azerbaijani oil to the Baku oil refineries and Russia.

As a structural unit of the State Oil Company of Azerbaijan (SOCAR), the Oil Pipelines Department incorporates the Oil Transportation Department, Export Pipelines Department, Transport Department and Materials Supply Storage Area. 

The department is engaged in the management and control over the transportation and receipt of oil from the SOCAR oil and gas producing departments, joint ventures, provision of its storage, transportation and further delivery to the consumers.

The history of the northern route dates back to 1983 when the 720-mm Grozny-Baku oil pipeline extending to 601 km was laid for transportation of the Western Siberian oil to the Baku oil refineries. The department ensures maintenance of this pipeline section in Azerbaijan.

After signing the agreement on exploration, development and sharing of production from the Azeri-Chirag-Guneshli fields for provision of early oil transportation from these fields on 20 September 1994, it was decided to extend the pipeline to the Russian port of Novorossiysk. The operations on construction of the section and reconstruction of the oil pipeline were held in line with the agreement signed on 16 February 1996 between the State Oil Company of Azerbaijan, Azerbaijan International Operating Company (AIOC) and contractor organizations ‘On rules of operation and pipeline’s potential transportation capacity’. 

At the same time, a new line of 530 mm in diameter and 57 km in length was laid for transportation of oil in the northern direction from the Sangachal terminal and connected to the Baku-Novorossiysk pipeline. AIOC undertook operations for transportation of oil in the northern direction in 1996-2008 and since 2008 the export has been successfully carried out by the Oil Pipelines Department.

The Oil Pipelines Department currently operates 774,919 km main pipelines of different diameters, 12 sections of oil transportation, 2 points of  oil delivery, an oil terminal, 66 power transformers, 8 power substations, 82,445 overhead transmission lines, 105,625 km underground power lines, different pumping units and 14 oil terminals of a total capacity of 499,900 cubic meters.

In 2012, the department received 8,224,700 tons of oil and handed 8,200,400 tons. Some  6,205,600 tons were supplied to the oil refineries via pipelines and 1,996,900 tons were exported.

Four moorings with a total capacity of cargo transfer comprising 20,000,000 tons a year, a service bridge for watch, towing and fire boats are currently being operated for receipt of oil supplied on tankers from the Caspian littoral states and filling reservoirs on the Dubendi oil terminal. Each of the bridges is able to receive tankers from both sides of the mooring. The moorings are equipped with the advanced facilities for pumping oil from the tankers to onshore reservoirs. 

The Dubendi oil terminal has 73 oil tanks in 11 tank batteries with a total fuel capacity of 455,000 cubic meters for storage of different oil brands. Tanks with floating roofs have been built and commissioned here for maximal reduction in natural losses of light oil.  The steam heaters, which serve to reduce viscosity and thus reduce the resistance during oil transportation through the pipelines have been installed for heating paraffin oil with low freezing temperatures in autumn and winter seasons.

A lab for chemical oil analysis equipped with advanced technology is functioning in the oil transportation area of the Pipelines Department in order to check the compliance with the standards.

The automatic control system is applied by the Department at its oil transportation areas and measure points to ensure control over transportation of oil by main oil pipelines. This system ensures remote and operative control over the process of transportation, the level of commercial oil in tanks, technological parameters of main pumping devices, control over temperature and pressure in oil pipelines and in all technological facilities. 

The control over the transportation of export oil by the North Export Pipeline is currently being implemented with the help of the automated control system.

The specialists of the Oil Pipelines Department introduce the full automation of control systems in order to facilitate the work in operations on oil transportation. 

Regular preventive works are held on the main pipelines to raise effectiveness of the transportation system and prevent potential failures. Technical status of pipelines and integrity of isolation are checked by means of special devices and preventive works are held. 54 km pipelines of different diameters have been replaced in the course of overhaul repairs over the past three years.

The works for provision of advanced equipment and restoration of electrochemical corrosion cover of main pipelines are currently underway. Special attention is paid to operation of oil tanks. Thus, the bottom settlings are cleaned and measures for corrosion protection of tanks are undertaken. 

The Oil Pipelines Department pays special attention to the measures on security of main and technological oil pipelines. Regular trainings for raising professional skills are held with participation of officials of the Special State Guard Service, Ministry for Emergency Situations, local executive bodies, law enforcement bodies, first aid stations and other structures. All possible scripts of developments are considered during the trainings.

The Department also focuses on environment, as one of the main spheres of modern life. Progressive measures in provision of environmental protection and security also occupy a special place. The monitoring held on oil transportation sections and along pipelines, early prediction of potential failures, technical control of the equipment promotes the preparation of an action plan and ensures its execution.

Over 5,000 trees and bushes have been planted and due agrotechnical maintenance been ensured in the area of the structural divisions of the Oil Pipelines Department.

The department employees are enjoying all conditions for work and rest. A range of measures have been worked out and due projects are being implemented for raising the production potential. The staff of the Oil Pipelines Department will further work successfully to promote the implementation of Azerbaijan’s oil strategy.