Maritime Executive: Azerbaijan: Offshore Oil Pioneer

Azerbaijan is one of the world's oldest oil producing countries and has played a significant role in the development of today's oil industry. The world's first paraffin factory was opened there in 1823, and the world's first oil field was drilled in 1846. Azerbaijan was the site of the first offshore oil field—the Neft Dashlary—in the shallow water of the Caspian Sea, which was completed in 1951 and still produces oil today.

The country's largest hydrocarbon basins are located offshore in the Caspian Sea, particularly the Azeri Chirag Guneshli (ACG) field, which accounted for almost 75 percent of Azerbaijan's total oil output in 2013. Similar to its share of total production, ACG also holds over 70 percent of Azerbaijan's total reserves, with about 5 billion barrels located in this field.

Although the State Oil Company of Azerbaijan Republic (SOCAR) is involved in all segments of the oil sector, it produces only about 20 percent of Azerbaijan's total oil output, with the remainder produced by international oil companies.
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