The first mechanical well in Azerbaijan: the dawn of the industrial oil era A historical retrospective on Caliber.Az

The history of oil in Azerbaijan has a long and truly unique trajectory, rooted in deep antiquity. On the Absheron Peninsula, natural oil seepages were known long before the emergence of modern industry and attracted the attention of travellers, scholars, and merchants. It was here that some of the first technologies for extracting and refining “black gold” took shape, influencing the development of both the region and the wider world. Azerbaijan’s oil heritage is not merely an economic story — it is also an integral part of the nation’s cultural and historical memory.

One of the most important centres in the formation of Azerbaijan’s oil industry was the settlement of Balakhani. It was here that the systematic development of oil fields began, laying the foundation for the growth of the sector and the country’s industrial potential. The area became a testing ground for early technological experiments, where traditional extraction methods gradually gave way to mechanised techniques. It was in Balakhani that the principles of organised oil production were established, a professional oil workforce began to take shape, and the strategic directions for the industry’s future development were defined. The role of Balakhani in the history of Azerbaijani oil is rightfully regarded as pivotal and, in many respects, decisive.

This urban-type settlement is located in the Sabunchu district on the Absheron Peninsula, just 9 kilometres from Baku. The name “Balakhani” derives from the Tat words bala, meaning “high”, and khane, meaning “house,” reflecting an old Absheron tradition: the term referred to small guest rooms in caravanserais.

The history of oil extraction here stretches back centuries. In one of the old wells, a stone was discovered bearing an inscription stating that it had been dug in 1594 by the master Allahyar ibn Muhammad Nuri. By 1735, there were already 52 oil wells in the area, according to the Russian physician Johann Lerche, who arrived with an embassy to Persia. In 1816 and 1825, their number increased to 77 and 82, respectively. Some wells from the period of the oil boom, dug by hand and reinforced with timber, have survived to this day — a unique legacy of early oil production.

Notably, in 1837, mining engineer Nikolay Voskoboynikov founded an oil refinery in the village of Balakhani, where oil was heated for the first time using natural gas. This marked the opening of a new chapter in the industrial processing of “black gold.”

One of the defining milestones in the history of oil production was the well in Balakhani drilled mechanically in 1871 to a depth of 64 metres. Well No. 1 became a genuine technological breakthrough of its time.

On April 1, 1873, it produced its first oil gusher — an event that marked the beginning of a new era in the history of the Baku oil region. The well made it possible to extract oil on an industrial scale and demonstrated the efficiency of mechanical drilling, thereby stimulating further development across the region.

Today, a symbolic memorial stands at the site of the well, commemorating its historical significance and its contribution to the development of Azerbaijan’s oil industry. The well has been conserved and is protected by the state on the territory of SOCAR — the State Oil Company of the Republic of Azerbaijan — preserving the memory of the first steps in industrial oil production. The site forms an important part of the region’s cultural and tourist heritage.

The unique wells of Balakhani and other parts of Azerbaijan remain significant testimonies to the early history of oil extraction. Each of them reflects the emergence of technologies and industrial practices in the region, as well as the efforts of generations of skilled workers. These sites showcase the engineering mastery of their time and constitute an integral part of the country’s rich industrial heritage. Today, they are protected by the state, safeguarding the memory of the key stages in the development of Azerbaijan’s oil industry.

By Vahid Shukurov, exclusively for Caliber.Az