CBD Fourth National Report - Azerbaijan (English version)

Country Study on Biodiversity and Fourth National Report
The Republic of Azerbaijan
fully demand of consumers for energy sources. Presently, the Company carried out oil & gas
operations in 22 thousand ha area onshore and 10 thousand km 2 area offshore.
The SOCAR employs 60400 persons, including 15500 women. Out of them 46000 work for
oil & gas production, 6050 for refinery complex and 8350 for construction and other
supporting units.
At the present, there extracted oil and gas from 54 fields. 37 of them are situated in onshore
area, 17 in shelf of the Caspian sea. All fields became wateriness in high extent due to longterm
operation, except to Gunashli and Chirag offshore fields and oil production decreased
sharply. As more than 70% of well stock are technically unsuitable, they are considered to be
potential pollution source. Trestle and trestleside scaffolds and stationary/fixed platforms
which expired its operation life, pollute the sea, too.
Joint development of three large oil fields (Azeri, Chirag and deepwater sections of Gunashli)
launched in Azerbaijan sector of the Caspian sea according to Contract signed between the
SOCAR and the Consortium in which eleven foreign companies from six countries included
on 1994 in order to eliminate the current situation. There established Azerbaijan International
Operating Company (AIOC) for implementation of the Contract. Following this Contract
more 20 large-scale oil contracts were signed with foreign oil companies on joint prospecting,
development and production sharing of offshore and onshore oil fields and exploration
targets. Good results were obtained under these contracts - Ashrafi oil field, Garabagh and
Shah Daniz gas condensate fields were discovered. Shah Daniz field having one trillion m 3
gas and 300 million condensate reserve is very important in growth of countrywide economy.
At the present, construction of Baku-Tbilisi-Arzurum export gas pipeline and Baku-Tbilisi-
Ceyhan export oil pipelines have been completed and commissioned. Length of the pipeline
passing through Azerbaijan is 443 km and width 44 m. Protection zone of the pipelines cover
2517.8 ha area in 58 m width and surface technical facilities involve 25.3 ha area and these
lands were leased for 60 years.
It should be noted that the Environment Impact Assessment documents are compiled and
agreed with the Ministry of Ecology and Natural Resources in all phases of oil fields
development in order to minimize environmental impact.
Production of crude oil totalled to 44.5 million tons in 2008, including 96% offshore and 4%
onshore. So, the decline in oil production was prevented which continued yearly due to
objective causes since the end of 1960 years and oil production was higher as 2.9 times in
comparison with 2003. Gas recovery totalled to 15.5 billion m 3 (including 99.2% offshore) in
2008 and it increased as three times in comparison with 2003. Oil production totalled to 42.3
million tons and gas recovery to 13.5 billion m 3 that within ten months of 2009 that it equals
to 112.1% and 102.8% as compared to similar period of the previous year.
Oil extraction and oil refinery industry had great impact upon the environment, including
biological diversity. There started oil extraction by industrial method in Azerbaijan in 1871 in
Balakhany-Sabunchu-Ramana fields of Absheron peninsula. Then new oil & gas fields were
discovered and on stream without performance of necessary technical accomplishment works
following one another in the peninsula and other onshore areas of the republic and Azerbaijan
sector of the Caspian. Land storages and open canals were used in collection and
transportation of well products for tens years. Ecosystems of both onshores and offshores
were seriously damaged resulted from usage of elementary technical means in initial phases
96
2009