The global changes, which occurred at the end of the XX century in the global political life, gave the chance to many countries, including Azerbaijan, to gain independence.
With its rich natural resources and favorable geographic position, Azerbaijan was able to draw attention of the global community from the first years of independence. Azerbaijan’s oil strategy, as an element of national security, has already gained corresponding positions globally, and this in its turn poses new tasks in the field of oil transportation.
In the new oil strategy, which foundation was laid by Nationwide Leader Heydar Aliyev, the oil transport system has a special value.
The requirements to quantitative and high quality export of Azerbaijan energy resources to the world markets have considerably increased.
Azerbaijan has the rich history of exploration and operation of large-scale oil and gas fields, their development, oil transport and refining. For example, the plant and the first crude oil storage tank were constructed in 1859-1870 to produce kerosene from hard oil mud in the Surakhany settlement.
In 1878 the first 12-km pipeline was constructed to connect the oil field with the refinery.
Till 1889 the length of all pipelines, which connected oil fields with Baku oil refineries, totaled 230 km. These pipelines transported up to 1 million tonnes of oil per annum.
Construction of the 833-km Baku-Batumi pipeline with the carrying capacity of 1 million tonnes per annum and with 16 pump stations was commissioned in 1897. The kerosene pipeline was completely put in operation on March 26, 1907.
In the following years, development of the oil industry along with promptly growing export of oil products from Azerbaijan set up the task to construct one more oil pipeline between Baku and Batumi. Construction of the Batumi Oil Refinery was launched in 1927 and building of the second 254-mm oil pipeline was commenced in 1928.
Crude oil supplies via this pipeline started already in 1930. In the following years, the expanded oil transport system developed into one of the vital branches of the oil industry.
Then, the development of the oil industry in Azerbaijan along with introduction of specific features of separate transportation of different oil sorts to oil refineries created a ground to establish a separate organisation for oil transport. The Oil Pipelines Division became the last heir of the company called Oil Office. At present, the Pipelines Division has developed into the large and specialized organisation, which ensures transportation of Azerbaijan oil to Baku oil refineries as well as to the Russian Federation.
As a structural unit of the State Oil Company of the Republic of Azerbaijan (SOCAR), the Oil Pipelines Division incorporates Dubandi Production Department, Absheron Production Department, Garadagh Production Department, Export Production Department, Transportation Production Department and Storage Facilities.
The primary activity of the Division is to operate and control oil transport and intake from oil and gas production departments of SOCAR and joint ventures, and to ensure storage, transport and delivery to consumers.
The history of the northern route dates back to the year 1983, when the Grozny-Baku oil pipeline with the diameter of 720mm and the length of 601km was constructed to transport oil from Western Siberia to Baku oil refineries. The Division serves the section of this pipeline in the territory of Azerbaijan.
The signing of the agreement on exploration, development and production sharing for Azeri-Chirag-Gunashli fields on September 20, 1994 was followed by a decision to expand the Grozny-Baku oil pipeline to the Russian port of Novorossiysk in order to transport “early oil” from these fields. Therefore, construction of a new section till the Russian port of Novorossiysk and repair of the old oil pipeline were performed in line with the agreement “On operating procedures and potential transportation capability of the pipeline” signed on February 16, 1996 between the State Oil Company of the Republic of Azerbaijan, the Azerbaijan International Operating Company (AIOC) and contractors.
At the same time a new 530mm section with the length of 57km was constructed and connected to the Baku-Novorossiysk oil pipeline to transport oil from the Sangachal terminal to the north. AIOC performed oil transport operations in the northern direction in 1996-2008, while since 2008 the Oil Pipelines Division has been successfully engaged in export operations. Since February 2014 oil export has been also performed from the Sumgait oil custody transfer point to the Sangachal terminal and then via the Baku-Tbilisi-Ceyhan pipeline.
At present the Oil Pipelines Division operates 629 km of trunk oil pipelines of different diameter, 12 oil transport sections, 2 oil custody transfer sections, export oil custody transfer section, oil metering section, oil transfer section, 66 power transformers, 8 power stations, 83km of overhead lines, 106km of cable lines, different pump units and 14 crude oil tank farms with the total capacity of 479,900 cubic metres.
In 2013 the Oil Pipelines Division received 8270.8 thousand tonnes of oil and transferred 8281.2 thousand tonnes, at that 6530.6 thousand tonnes were sent to the oil refineries and 1750.6 thouand tonnes were exported.
4 quays with the total cargo transshipment capacity of 20 mln tonnes per annum along with a bridge for serving log, towing and fire boats are operated to receive oil supplied by tankers from the Caspian states and fill storage tanks at the Dubandi Production Department.
Each bridge, in turn, is able to receive tankers from the two sides of the quay. The quays have the brand-new equipment to inject oil from tankers into reservoirs.
The Dubandi Production Department possesses 55 reservoirs in 10 crude oil tank farms with the total capacity of 347,9 thousand cubic metres to store different sorts of oil and oil products. Breathing tanks have been constructed and commissioned there to reduce maximally natural losses of light oil fractions. The tanks have steam heaters to heat light crude oil sorts with a low freezing point in the autumn-winter season. These heaters reduce viscosity and accordingly reduce resistance in the process of oil transportation in pipelines.
The Oil Pipelines Division operates the chemical analysis laboratory with the cutting-edge equipment to check compliance to quality at the oil transport section.
The automatic control system is being introduced at oil transportation and metering sections of the Oil Pipelines Division to control oil transportation via the trunk oil pipelines.
This system enables to exercise remote operational control over the process of transportation, the level of commercial oil in crude oil tank farms, operational parameters of pumps, control over temperature and pressure in oil pipelines and all gate valves.
At present the control over transportation of export oil via the Northern export pipeline is carried out by means of the automatic control system.
The specialists of the Oil Pipelines Division are introducing automation of control systems to facilitate labour of employees during oil transportation operations.
Diagnostic work is regularly carried out on the trunk oil pipelines to raise efficiency of the transportation system and prevent probable accidents. Special instruments are used to check the technical condition of the pipelines, integrity of insulation, and regular preventive measures are taken as well. 75km of pipelines of different diameter were replaced during major overhauls over the last 3 years.
The work to provide modern equipment and recover the system of electrochemical protection of main oil pipelines from corrosion is now underway. Particular attention is paid to the exploitation of oil reservoirs. So, they are regularly cleaned from bottom sludge and measures are being taken to protect tanks from internal and external corrosion.
The Oil Pipelines Division attaches due importance to activities aimed at securing safety of main and industrial oil pipelines. Thus, a fire, explosion and other accidents can occur on main oil pipelines at any time of the day. Trainings are regularly held with participation of employees of the Special State Protection Service, Ministry of Emergency Situations, local executive authorities, law enforcement agencies, ambulance stations and other agencies in order to ensure timely prevention or elimination of accident consequences. All possible outcomes are considered during trainings.
Ecology, one of the most important spheres of modern life, is also in the focus of attention of the Oil Pipelines Division. Special importance is attached to advanced measures undertaken for securing environmental protection. In general, regular monitoring that is held at oil transportation sections and along the pipeline, early prediction of possible accidents and technical control over the equipment enable to prepare an action plan and secure its fulfillment.
About 3,000 trees and bushes were planted at areas of structural units of the Oil Pipelines Division and appropriate agro-technical services provided.
Employees of the Oil Pipelines Division were provided with all conditions for comfort work and rest. A number of activities were prepared for strengthening the production potential. Corresponding projects are underway in this regard.
The personnel of the Oil Pipelines Division will keep working successfully, promoting the implementation of the oil strategy of Azerbaijan.
