HEYDAR ALIYEV OIL REFINERY * Baku

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Valuable resources such as oil and gas lie deep within the Earth. Many shallow reserves have already been exploited and are nearing depletion, making it essential to seek out new resources, particularly in deeper geological layers. This process requires significant investment of both time and capital. Exploration marks the beginning of the energy production process and involves locating hydrocarbon reserves and developing potential fields.

Traditionally, exploration was done through direct well drilling. However, modern techniques now rely more on geophysical methods—including magnetic, gravimetric, electrical, seismic, and radioactive surveys—which significantly reduce both cost and time. Initially, broad methods such as magnetic, gravimetric, or electrical surveys are used to detect possible deep oil or gas deposits. Once a promising area is identified, more precise seismic surveys follow. These involve generating elastic waves through controlled explosions or vibration devices; the waves reflect off subsurface layers, typically at depths of 5–10 kilometers, helping map the underground structure.

While geophysical methods can identify areas likely to contain oil and gas, geological confirmation is still required. This is done by drilling exploratory wells—often called reference or parametric wells. If these confirm that the reserves are productive enough, the site moves into the production phase. The entire process of exploring and developing an oil or gas field can span several decades.

Transportation (Midstream) plays a critical role in the oil and gas industry, serving as the essential link between upstream production and downstream processing and distribution. This phase involves not only the transportation of hydrocarbons—primarily via pipelines, which are the most cost-effective method for large-scale export—but also their storage and delivery to refineries. Transportation is carried out using pipelines, railways, tankers at sea, and national gas distribution networks.

Following Azerbaijan’s independence, HOAR rapidly developed a robust pipeline infrastructure, launching numerous domestic, regional, and international projects. A major milestone was achieved with the Contract of the Century, which paved the way for the construction of key export pipelines.

One of the first, the Baku–Novorossiysk Pipeline, was completed and operational by 1997. This was followed by the Baku–Supsa Pipeline (also known as the Western Export Pipeline), completed in 1998 after an agreement between Azerbaijan and Georgia in 1996. Another significant project, the Baku–Tbilisi–Ceyhan (BTC) Pipeline, enabled direct access for Azerbaijani oil to global markets.

To transport natural gas from the Shah Deniz field, the South Caucasus Pipeline (SCP) was commissioned in 2007, delivering gas to Georgia and Türkiye. As part of the Shah Deniz Stage 2 project, two major pipelines—TANAP (Trans-Anatolian Natural Gas Pipeline) and TAP (Trans-Adriatic Pipeline)—were constructed to transport Azerbaijani gas to Türkiye and further into European markets. These pipelines collectively form the Southern Gas Corridor, a 3,500 km strategic energy route connecting Asia to Europe. This corridor strengthens Europe's long-term energy security, provides alternative supply routes, and supports the development of a competitive energy market.

In addition to pipelines, Azerbaijan has developed significant terminal infrastructure. The Kulevi Terminal, with a loading and unloading capacity of 10 million tons per year, facilitates the storage and shipment of oil, gas, and related products to international markets. The HOAR Terminal in İzmir’s Aliağa district enables direct trade between the Far East and Northern Europe. Meanwhile, the Dubendi Terminal, spanning 106 hectares, is capable of handling up to 20 million tons of products annually.

The Heydar Aliyev Oil Refinery (HAOR) was established on July 29, 1953, by the USSR Ministry of Petroleum Industry. Over the years, it has operated under several names, including the New Baku Oil Refinery, Azerneftyanajag Production Union, and Azerneftyanajag Oil Refinery. Since April 22, 2004, it has proudly borne the name of National Leader Heydar Aliyev.

HAOR manufactures around 30 different petroleum products, including liquefied petroleum gas (LPG), motor gasoline, jet fuel, diesel fuel, fuel oil, household fuel, petroleum coke, gas fractions, naphtha cuts, and dry gas for petrochemical use. It also produces naphthenic acids, bitumen, and various industrial oils, such as turbine and transformer oils. As a result, the refinery meets a significant portion of Azerbaijan’s domestic fuel demand.

The refinery's core processing facilities include crude oil desalting and crude and vacuum distillation units, with a total design capacity of 7 million tons per annum (MTA) of crude oil. In addition to these primary units, HAOR operates a variety of advanced processing units, such as:

Continuous Catalytic Reformer (CCR)

Delayed Coking Unit (DCU)

Fluid Catalytic Cracking (FCC)

Hydrogen Production Unit (HPU)

Diesel Hydrotreater (DHT)

Methyl tert-butyl ether (MTBE) production unit

Lube oil treatment and hydrotreatment systems

Acid resin regeneration

Bitumen Blowing Unit (BBU)

Primary processing units handle the initial treatment of crude oil and supply feedstock to the refinery’s conversion units. One notable product, TC-1 jet fuel, is sold directly from these primary units.

The CCR unit, with a 1 MTA capacity, plays a critical role in producing stable platformate, an essential component in the formulation of motor gasoline.