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The “Description of Treasury buildings located at hand-dug oil wells and cellars that fell under the purview of the Georgian Mining Expedition in January 1825,” compiled by Chief Mining Captain Karpinsky in February 1825, gave precise information “about the condition of the hand-dug oil wells and cellars for the storage of oil; about the quantity of oil in them left by Mr. Tarumov in the fortress of Baku and in the settlements of Binagadi, Surakhany, and Beybati.” In 1825 there were a total of 125 hand-dug oil wells, including: 82 wells of “black” petroleum and 12 Treasury cellars in Balakhany, 5 wells of “black” petroleum in Binagadi, 15 wells of “white” petroleum in Surakhany, and only 16 cellars for storage of “black” oil in Baku itself.

The natural scientist and traveler Karl Eduard von Eichwald (1795— 1876) visited Baku that same year (1825). In his work Reise auf dem Caspischen Meere und Caucasus [Trip to the Caspian Sea and Caucasus], he gave a detailed description of the “eternal flames” and pointed out the properties of combustible gas mixed with air, and also described the hand-dug oil wells: “Wells producing ‘white’ oil are located to the northwest of the village of Surakhany, at a distance of approximately 1.5 versts [1 mile] from it. To recover oil, 16 wells have been set up; to improve their capacity, they are built broad inside, while at the top, on the contrary, they are narrow, not more than a foot in diameter. They are covered tightly with fitted caps, so as not to allow the oil to evaporate. Many hand-dug wells collect ‘white’ oil with water; every well gives an indefinite quantity of oiclass="underline" more in summer and less in winter.”

A detailed article by St. Petersburg Mining School graduate Nikolay Voskoboynikov, “Mineralogical Description of the Absheron Peninsula, Forming the Baku Khanate,” which appeared in Gorny zhurnal [“Mining Journal”] (1827), provided the first classification of the various forms of Baku petroleum, explained the origin of the so-called “white” petroleum, provided a detailed description of the oil wells and pools (oil pits) in the Absheron Peninsula, and also described existing methods of storing oil and the technology of the work performed to set up oil wells. Voskoboynikov pointed out the following: “The rather thick, black petroleum is found predominantly in the areas of Bakhche and Shubany, where it accumulates in small pits, whose depth is from one-third to one arshin [9.3 to 28 inches]. It is also encountered close to the villages of Balakhany and Binagadi, close to oil wells. This petroleum is of poor quality, making it unusable for lighting without a significant admixture of greenish petroleum; very thick oil of this type is also used for caulking vessels.”

He provides curious information about the sea oil field of local inhabitant Kasim-bek, which consisted of two hand-dug wells: “One of them was located at a distance of nine sazhens [63 feet] from the shore at a depth of one-quarter sazhen [1.75 feet], and the second 15 sazhens [105 feet] from the shore at the same depth. The wooden frameworks of the wells rose half a sazhen [three and a half feet] over the surface of the water.”

Meanwhile, the performance of necessary well repair work, the establishment of a system to account for the oil produced, and a number of other accomplishments of Mining Expedition specialists increased production, and in 1825 more than 28,800 barrels of oil were produced. Despite the increased production, the Treasury received no more than 76,000 rubles for a year. After this, Count Yegor Kankrin, minister of finance, issued an order stating: “Experience with Treasury administration of the fields in 1825 showed that the profit received from them falls far short of the income the Treasury received during the period when they were run under a tax-farming arrangement.”22

Therefore, when entrepreneurs who expressed the desire to run the aforementioned fields under a tax-farming arrangement were found, the oil wells were leased to them for two four-year terms (1826–1834).

However, after these eight years had passed, history again repeated itself: “As no one wanting to run these fields again was found, the fields came under Treasury administration for the following four-year period under a tax-farming arrangement, starting on January 1, 1834.”23

The Projects of Mining Engineer Voskoboynikov

The next significant phase in the development of the oil fields in the Absheron Peninsula is inextricably connected with the fruitful activity of the talented mining engineer Nikolay Voskoboynikov (1803–1861).

Starting January 1, 1834, Emperor Nicholas I (1796–1855) issued a decree militarizing the Mining Department as the Corps of Mining Engineers. The Corps was headed by the minister of finance himself, Yegor Kankrin (1774–1845). It was at this time that the term “mining engineer” first appeared in Russia. Moreover, the post of chief of staff, responsible for daily operational management of the department, was created. The first person appointed chief of staff of the Corps of Mining Engineers was Major General Konstantin Chevkin (1802–1875).

On January 1, 1834, Corps of Mining Engineers Major Voskoboynikov was appointed director of the Baku and Shirvan oil and salt fields. An order of the Mining Department defined his responsibilities as seeing to it that the hand-dug oil wells were correctly run, and that the oil was produced and delivered to Baku and the near banks of the Kura River, the designated places for the sale of oil. With his new appointment, mining engineer Voskoboynikov was granted the opportunity to realize his innovative ideas concerning the development and improvement of the oil business.

First and foremost, his attention was focused on the technology of setting up hand-dug oil wells. At that time, the existing procedure for setting up oil wells involved first excavating a pit resembling an inverted cone all the way down to the oil stratum. At least 7 terraces averaging 31.5 feet in depth were made on the sides of the pit. The average volume of earth taken out of such a well was around 2,317 cubic feet. The walls of deep wells were reinforced from the very bottom to the surface by a wooden framework and boards. The lower courses of the well had openings made in them to allow the inflow of petroleum.

In an effort to increase the efficiency of the work, Major Voskoboynikov proposed that access be gained to the oil stratum by constructing shafts, instead of by digging a large-diameter pit on the surface. The shaft was divided in half by a partition. Over the head of the shaft, a raised tubular structure made of boards was set up on one side to increase the circulation of air in the shaft. This proposal significantly reduced the volume of earthmoving work required to set up oil wells.

Clogging presented a serious problem in operating oil wells. To clean a well, a man was lowered on a rope, and he collected dirt into a bucket using his hands. As a rule, the lack of air greatly limited the time a worker could remain in the well. In 1835, mining engineer Voskoboynikov proposed constructing a canvas ventilator to deliver fresh air into the oil well to facilitate cleaning and repair work. Later, he introduced an improved individual device: a breathing apparatus consisting of an artificial nose and a flexible tube fastened to it. Use of this apparatus allowed for the successful cleaning of a narrow and curved well known as “Ali-Bek,” which had never been cleaned before.

The advancements made during Nikolay Voskoboynikov’s initial period of work resulted in positive growth: in just the first two years of his management of the fields (1834–1835), oil production increased to 42,355 barrels (compared with 41,562 barrels in 1833).

However, storing, receiving, and delivering oil still presented an extremely acute problem in the fields. Storing oil in earthen cellars and open oil pits resulted in great losses as a consequence of significant evaporation, leakage through various openings in cellar and pit walls, and additional losses from bucket spillage when workers carried them by hand.