Caspian Energy (CE): What role  does the Transportation Department play within SOCAR? What contribution does the Department make into development of the oil-gas industry? What is its present potential?

Elchin Zulfugarov, Head of the Transportation Department of the State Oil Company of Azerbaijan: SOCAR is holding a ranking place in the economy of Azerbaijan. This fact was repeatedly stated by National Leader of Azerbaijan Heydar Aliyev. 

SOCAR is an international company engaged in production, processing, transportation of oil and gas as well as in provision of domestic services through such organizations as Azerigaz PU and others. 

As the result of transformations within the frameworks of President of Azerbaijan Ilham Aliyev’s Decree as of February 24, 2014 on improvement of the SOCAR structure, all transport departments operating within subdivisions of SOCAR were combined into the Transportation Department in accordance with SOCAR President Rovnag Abdullayev’s order dated June 12, 2014. 

SOCAR Transportation Department is providing transportation services to all production and operating subdivisions of SOCAR. Our transportation services cover all spheres of activity of the State Oil Company including oil-gas producing sites, subdivisions on geology and geophysics, trusts, etc. 

The Transportation Department has its own peculiarities consisting of several areas. We are engaged in arranging and managing transportation of SOCAR’s employees, their number is about 60,000 people. In particular, we arrange their comfort delivery from their residence directly to production sites. 

The department is also engaged in cargo transportation in order to secure uninterrupted activity of SOCAR. 

We also lend services by means of special equipment. This special equipment is servicing big unions and trusts, operating within SOCAR, and managed by us. Special equipment includes different facilities operated while drilling, producing and transporting of oil-gas. The list includes tractors and mechanisms; vehicular transport and special vehicles installed on the chassis of the motor transport; drilling equipment; special lifters applied for overhaul and underground maintenance of wells; special equipment applied for geological exploration, etc.   

In general, we do the whole range of services responsibly and find our work very important within SOCAR. 

CE: Which innovative special technology is currently introduced at production sites? 

Elchin Zulfugarov: As you know, Azerbaijan is an oil country. Azerbaijan was the first to launch industrial oil-gas production. Here, the role that played our north neighbors is certainly noteworthy. In this way, in the oil-gas industry we were applying technology and other oil-gas equipment that we had inherited from the soviet period. Then, the Contract of the Century which the 20th anniversary we are marking this year was signed under the leadership of National Leader Heydar Aliyev. I remember those years very well in spite of the fact that I was a young specialist at that time and worked mechanic engineer at N.Narimanov OGPD. The entire equipment was produced during the former Soviet Union and it was practically impossible to find spare parts for it. This equipment did not meet new requirements after signing of the Contract of the Century. However, we passed a long path of development over the years and replaced our technology and equipment with advanced facilities. The thought of workers has changed as well. 

After Rovnag Abdullayev was appointed SOCAR’s President in 2006 the task to improve conditions for transportation of workers from their residences to production sites and back was set.  Comfortable busses produced in Japan, Turkey and the USA (Isuzu, Otokar, Ford) were purchased in order to ensure comfort transportation of workers to adminsitrative buildings and working areas. The car fleet now consists of 500 busses equipped with air-conditioners and TV sets, cold storage boxes. 

About 200 units of pickups were bought for transporting small equipment. It was a stage aimed at increasing the comfort of SOCAR workers. 

Apart from this, three years we took part in designing of the bus, meant for 35+1 passengers, in Turkey and then bought 50 of them. Now they are broadly used in Turkey as well. Then we started replacement of the cargo transport fleet. The cargo transport was replaced with modern makes such as Mann and Ford. Purchased were water carriers Ford including Mercedes and Ford dump trucks. 

At the final stage we started replacing the special equipment used while oil and gas production. There was a need for buying a technology that could handle the situation at fields which have been under development for over 50 years. It was a hard process. For instance, the LPT-8 (lifting winch) which is applied when overhauling wells was designed considering depth of the well, weight of pipes and other parameters. In view of the tasks assigned by the management of SOCAR, we started seeking special facilities conforming to the geography of our region and began negotiations with Liebherr (Germany) and SJ Petroleum (China) companies. Owing to the efforts of our designers and engineers, we managed to receive a first consignment of equipment from China in 2012. 

The first experience turned out successful. Earlier we had to bring equipment applied at production wells while new facilities were set on the chassis and could move independently on its wheels. Besides, one unit of hoist machinery (oil well machine X-12) with the hoisting load of 120 tonnes now is capable to replace four hoisting winches that we had been applying. 

We continued cooperating with Chinese suppliers, designed and worked out new types of hoisting machines with the hoisting capacity of 120 tonnes which are currently under development (ZJ-12, etc).

Nowadays, the total quantity of machines and transport control mechanisms numbers 5592 units. We will obtain new equipment in near future and its quantity is to reach 5620. 

In case of necessity we also perform certain work for consortiums operating in Azerbaijan. Along with it, I would like to note that the activity of the Transportation Department has been certified in compliance with ISO 9000, ISO 14001 and OHSAS 18001 standards.

CE: What are the prospects of development of the transport facilities of SOCAR? 

Elchin Zulfugarov: Our present objective is to develop advanced technologies and improve customer relationship. It must be noted that economic activity of transport facilities is constituted of daily operation of each transport mean including special equipment. 

 In this way the operation of transport equipment is calculated by multiplying daily working hours of all vehicles and facilities in our balance. 

Apart from this, car operation indicators which used to be fixed by trip tickets before are being eliminated. The GPS system is installed on all the vehicles. This system has already been installed on 1000 vehicles out of 5592 that we have in the balance. 

A new management system will enable to prolong both the service life of vehicles and improve their operation.