Study of the area, environmental conditions of the "Binagadineft" NGCI mines in the Absheron peninsula of the Republic of Azerbaijan, and study of vegetation-soil cover contaminated by oil and oil products

The Enemy Within: Oil in the Niger Delta

In Azerbaijan, it is necessary to study scientifically the fertility of groundwater contaminated soils and the restoration of vegetation, as well as the benefits derived from underground oil and petroleum products. For this purpose, it is a very urgent issue to carry out phytoecological studies around the wells operated in oil fields. In modern times, when petroleum products are extracted, soils are subject to degradation due to anthropogenic and technogenic effects and some species of our flora have been oppressed. For the first time, phytoecological studies were carried out by us in the Pirallahi Oil and Gas Extraction Department of Absheron Neft State Oil Company of the Republic of Azerbaijan. Determination of oil-contaminated lands and areas under groundwater in the operational zones of oil and gas extraction departments on the Absheron Peninsula in the “Comprehensive Plan of Action for Improvement of the Environmental Situation in the Republic of Azerbaijan for 2006-2010” approved by order of the President of the Azerbaijan Republic dated September 28, 2006 and the preparation of a large-scale ecological map of the Absheron peninsula was demonstrated.

Oil has been known since ancient times: already in ancient Persia, pagan priests extracted it from wells for the sacred fire. And the building material for the construction of Babylon and Nineveh was asphalt (mountain or mineral) resin, which was formed as a residue from the evaporation of oil produced on the Ise River, a tributary of the Euphrates. According to the ancient Greek historian Plutarch, who described the campaigns of Alexander the Great (Makedonian), already in the 4th century BC, his warriors used oil from the Absheron peninsula for lighting, transporting it in wineskins or clay vessels. At the beginning of the 13th century the Arab historian Muhammad Bekran, who visited the Absheron Peninsula, noted in his book well oil production in Balakhani; that is the wells represented the first oil sources of Absheron. Oil springs on the Absheron peninsula (further in the article – Absheron) with burning gases served the followers of Zoroaster (Zarathushtra) as an object of religious veneration (in the 6th century BC on the Absheron there were temples of fire worshipers, in which sacred unquenchable fires burning, coming out of the ground). In the 18th century and the beginning of the 19th century the fires were carefully maintained by the priests of the ancient Iranian sect “Parsis”, from whom the temple of fire worshipers in Surakhani (near Baku) has survived to this day. Next, at the beginning of the 13th century the Arab historian Muhammed Bekran, who wrote about Absheron, noted in his book about oil production in Balakhani. Oil springs on the Absheron with burning gases served the followers of Zoroaster (Zarathushtra) as an object of religious veneration (in the 6th century BC on the Absheron there were temples of fire worshipers, in which sacred unquenchable fires burning, coming out of the ground). In the 18th century and at the beginning of the 19th century the fires were carefully maintained by the priests of the ancient Iranian sect of the “Parses”, from whom they preserved the temple of fire worshipers in Surakhany remains to this day. It is shown that ultimately, the development of the oil business in Absheron led to the emergence of a number of large oil and trading companies: “H.Z. Tagiyev” (1872), “Baku Oil Society” (1874), “Nobel Brothers” (1879), Rothschild’s “Caspian-Black Sea Society” (1883), “Oil” (1883), “S.M. Shibayev” (1884), “Mirzoyev Brothers” (1886), “Caspian Partnership” (1887), “Nagiyev Musa” (1887), “Asadullayev Shamsi” (1893), “Caucasus” (1896). ), “I.A. Akhverdov” (1896), “Russian Oil Industry Society” (1896), “Souchastniki” (1899), “Absheron Oil Society” (1899), “A.I. Mantashev” (1899), “Alexander Benkendorff” (1900), “Bibi-Heibat Petroleum Co. Ltd.” (1900), “Balakhani Syndicate Ltd.” (1900), “Moscow-Caucasian Oil Society” (1902), “Binagady Oil Industry and Trade Society” (1908), “St. Petersburg-Caucasus Oil Industry and Trade Society” (1911) and many others.

The paper analyzes the problems of the Russian oil and gas sector from the point of view of the interaction between oil companies and contractor service companies. The Russian oilfield services market formed in the 90s as part of the separation of non-core assets from oil and gas production enterprises. The trend of the last decade has been the development of their own services by oil and gas companies. The key features of the Russian oil services market are: inelasticity to hydrocarbon prices and production levels, the dominance of internal services of large companies, and, as a consequence, the monopsony nature of the market. In the context of increasing technological level of complexity and risks in the implementation of projects (depletion of existing field reserves, Arctic projects, sanctions), the role of not only standard, but also high-tech work performed by service companies is growing. Oil and gas companies strive to build interactions with service companies in such a way as to minimize their risks. The existing format of interaction between oil and gas companies and service companies is not always acceptable for independent service companies in the regions, since it hinders their development. In competitive procedures, the price criterion dominates; the requirements for equipment and personnel qualifications on the part of oil and gas companies are growing, which companies cannot always meet. As a result, service contracts are often low-margin. We propose Norway’s experience in providing service companies with guaranteed long-term contracts and reduce the importance of the price criterion when choosing an oil service contractor. The paper analyzes the problems of the Russian oil and gas sector from the point of view of the interaction between oil companies and contractor service companies. The Russian oilfield services market formed in the 90s as part of the separation of non-core assets from oil and gas production enterprises. The trend of the last decade has been the development of their own services by oil and gas companies. The key features of the Russian oil services market are: inelasticity to hydrocarbon prices and production levels, the dominance of internal services of large companies, and, as a consequence, the monopsony nature of the market. In the context of increasing technological level of complexity and risks in the implementation of projects (depletion of existing field reserves, Arctic projects, sanctions), the role of not only standard, but also high-tech work performed by service companies is growing. Oil and gas companies strive to build interactions with service companies in such a way as to minimize their risks. The existing format of interaction between oil and gas companies and service companies is not always acceptable for independent service companies in the regions, since it hinders their development. In competitive procedures, the price criterion dominates; the requirements for equipment and personnel qualifications on the part of oil and gas companies are growing, which companies cannot always meet. As a result, service contracts are often low-margin. We propose Norway’s experience in providing service companies with guaranteed long-term contracts and reduce the importance of the price criterion when choosing an oil service contractor.

The major service company's bundled service concept has evolved to provide Gulf of Mexico operators an alternative solution to managing discrete service operations themselves - a new approach called total integrated solutions. Traditional drilling and workover operations require the operating company to coordinate numerous service companies and products on-site. Economic changes in the oil industry have caused operating companies to reduce staffing levels and service companies to merge and consolidate operations. Service companies are now expanding technical staffs by hiring experienced operating company engineers and are focusing on providing a total solution that involves not only providing products and services but engineering and often complete project management. Substantial cost savings have been realized by offshore - operators through the total integrated solution approach in various types of drilling, workover, and abandonment projects. The majority of the cost savings is directly related to the many efficiencies created by the teamwork of this approach. These efficiencies result from the implementation of new technologies, proper preplanning improved coordination, communication networks, safety programs, additional training, and a well-focused project team assembled by the team coordinator (project manager). Measurements of performance have proven that the new totally integrated-solution team concept can be superior to traditional methods in generating cost savings. By establishing project objectives and goals before job execution, various measurement parameters are identified and tracked throughout the project to quantify the performance improvement. The service company is motivated through a risk/reward incentive. The case histories included in this paper illustrate the cost reductions that may be achieved by using a total solution approach instead of the traditional discrete service approach. Introduction Many changes have occurred in the oil industry in the past several decades, but none is more important than the restructuring of the operating and service companies in the past 15 years driven by the need to improve productivity and lower total operating costs. The following sections summarize the changes within the operating and service companies that have led to the new business relationships that are developing today. The Operator Historically, the majority of all drilling, completion, and workover programs were prepared by the oil company engineer or consultants with technical assistance from service companies. Many of the fundamental services were provided by the operating company itself. In the 1960s, most operating companies divested themselves of their service businesses. The company engineer continued to perform all of the required engineering calculations and was responsible for providing all of the technical information relating to the specific project. The company engineer still relied on the experience of the field operating personnel to provide past histories and field data to support the proposed well plan. Service company input was considered valuable by the operating company but was never as valued as their own company's experience. The preplanning phase was structured around in-house company experts: engineers, technicians, geologists, geophysicists, managers, analysts, operations personnel, and research scientists. The traditional solution process, built around the use of in-house experts to solve problems, began to change in most oil companies during the early 1980s. Domestic economics had changed after the oil boom of the late 1970s, and most oil companies began to reduce their organizational structure. This affected many technical support personnel, engineers, and geologists. Research budgets and support were also reduced in response to the lower prices and profit margins. Fundamental research by operating companies became a luxury that most operators could not afford.

The study argues about inevitable social responsibilities and challenges faced by the oil companies. Smog in the inner cities, oil spillage, chemical disposal, climate changes, environmental pollution, local recruitment and toxic wastes are mammoth challenges for oil and gas companies to face. Oil industry has to respond to the environmental issues in general and climate changes in particular, because the ultimate goal of the business is to maximize the profit and also contribute to the social welfare of the community. The research paper contains different motivational theories in order to persuade the oil companies to consider their social obligation towards the nation. Two dimensions of the social responsibilities are hereby submitted. First, development of environment friendly strategies. Second, allocating financial resources for community development to establish schools, medical and other welfare units for the society in order to contribute to sustainable economic development. Oil and gas companies have to devise ways and means for the benefit of the community from indigenous gas and oil projects. Introduction Companies consider corporate social responsibility as a voluntary act, not mandates by law, to work for the welfare of the community and share with them benefits extractd from their indigenous resources. Oil companies have to determine the welfare of its stakeholders on the priority basis in order to ensure healthy environment within the premises. Oil Industry is considered as the backbone of any economy as it extracts revenue from earth and can contribute huge revenue to Gross National Production (GNP). While working in any economy, oil companies either from domestic environment or international are required to fulfill their Corporate Social Responsibilities and prove themselves as good corporate citizens. From time to time, oil companies are blamed for not paying proper attention to the community in which they operate their business and generate revenues. Earlier, when people had no awareness of the Corporate Social Responsibilities, they didn't raise objections, but with the passage of time, when awareness developed among the masses, objections raised from every corner against lack of concern on the part of oil companies for the welfare of community. Two dimension of Social responsibility are very mandatory to submit here; 1. Development of Environment Friendly Strategies Oil companies should acknowledge their obligation towards the health of the community that should not be affected by the oil industry. Toxic and hazardous waste claims lives of so many people who are living in the surrounding. The dispose of toxic waste in the river Indus claimed so many lives in the Hyderabad and also created water problems in the district. Smog in the inner cities, oil spillage, chemical disposal, environmental pollution etc: are major concerns to face oil industry. Majority of respondents submitted that toxic wastes are not disposed of with the consent of the local community. Due to smog in the cities, many accidents occur specially in the morning time. At present, global warming is a serious subject of discussion among the community. Increasing global warming causes to melt the glaciers before the time and creates problems like water shortage, flood etc. oil industry is also blamed for creating environmental problems for the society. Oil industry should take precautionary measure to protect environment and safeguard the health of the community. A healthy sign in this connection is that majority of oil production and Service Companies are revamping their environmental strategies in order to lessen the risk of polluting the natural environment. Many companies are nowadays trying to establish waste management system in order to dispose of the waste safely and with the consent of local people. Increasing waste is alarming for oil companies as it creates severe environmental and health problems for the people. During the exploration and production of oil and gas, and the refining, manufacturing and marketing of products, company use a range of natural and manufactured materials which generate solid and liquid waste which adversely affect the environment and health of the people. Where the waste is unavoidable and cannot be reduced or reused, it must be disposed of properly. Many companies have waste system to assure disposal or recycling of wastes properly without causing losses for community.

In the this century, the social responsibility of oil and gas companies will include not just health, safety and environment, but also the sustainable economic development of host communities. Today, in most host communities around the world, local community organizations protesting environmental pollution and economic underdevelopment are making it impossible for oil and gas companies to operate without engaging in social engineering or economic development activities. In Nigeria, the local community struggles have interrupted operations on numerous occasions leading to declarations of force majeure. In the last five years, these interruptions have become widespread, better organized, and more violent. Company workers have been kidnapped for ransom, hostages taken, flowstations and other surface facilities occupied and access roads to plants and offices blocked. This paper examines the struggles of local grassroot organizations for sustainable economic development and environmental conservation in the oil and gas producing areas of the Niger Delta of Nigeria. The impact of oil and gas operations on the environment and the development of the communities are also examined. The linkages between environmental conditions and sustainable economic development are highlighted. The relationship amongst the host communities, oil companies and Federal Government of Nigeria is analyzed in detail. A project economics model that captures the cost and benefits of investments in sustainable economic development is developed. The paper concludes that the social responsibilities of oil companies should encompass the sustainable economic development of host communities. An economic evaluation model that captures profitability from the perspertives of the oil companies, the host communities, the Nigerian government and the shareholder is recommended. This approach encourages the cost-effective participation of the inhabitants of the host communities, the oil companies, the shaeholders and the Nigerian government in the economic development process. A balanced growth strategy is proposed for the sustainable economic development of host communities in the Niger Delta of Nigeria.

The article also discusses the impact of changes in the level of the Caspian Sea on coastal soils, shows ways of efficient use of soils in agriculture. The assessment was carried out on the basis of the analysis of field, laboratory and multi-year research materials. It is noted that the existing natural and ecological conditions in the studied region, both natural and against the background of human economic activity, lead to rapid transformation processes in the morphogenetic properties and diagnostic indicators of soils. This change always changes from north to south and from west to east. Although the selected study region does not have a large area in either the meridional or parallel directions, the differentiation caused by natural and anthropogenic factors in the landscape and land cover is clearly evident. Thus, the ratio of natural and anthropogenic impacts changes from the lower reaches of the Samurchay in the north to the lower reaches of the Sumgayitchay in the south. While the anthropogenic impact on the surrounding ecosystem in the north increases year by year, the impact of natural exodynamic processes increases towards the south, and the anthropogenic impact takes second place. On the Absheron Peninsula, the anthropogenic (technogenic) impact on the environment increases many times. As is known, the Caspian coastal region of Azerbaijan extends from the Samurchay in the north to the Astarachay in the south. The aridity index increases from both the northern and southern ends of the Caspian coastal region towards the Absheron Peninsula, and the anthropogenic impact is weaker than the natural impact. Only in the center, as mentioned, does the anthropogenic impact on the Absheron Peninsula increase again. The study area includes the part of the Caspian Sea coastal region from the Samurchay to the Absheron Peninsula. The Samur-Devachi, Siyazan-Sumgayit and Bogaz plains are located here. Over the past hundred years, research has been conducted in the area on various directions and problems of soil science. These studies reflect the period of the last century. These research works are of great importance for determining the dynamics of soil processes. In the studied area, the desertification process is expanding its territory not only to the north, but also from east to west. Towards the west, the influence of natural factors weakens, but the anthropogenic influence intensifies. This process, in addition to negatively affecting the parameters of the soil cover, has also led to serious transformation of the soil. Our latest research on natural and anthropogenic degradation of soils covers the years 2016-2019. Keywords: anthropogenic, transgression, regression, takır, hesitation, climate

This paper considers the cyclical nature of resource nationalism. As the title suggests, the focus is on the oil production in the Middle East. The reason for the emphasis on the Middle East is obvious. It has always dominated the global oil reserves and has in recent years had more than its fair share of conflict. This issue matters because it determines the ability and willingness of the region to convert its geology into supplies of oil for the global oil market. Fig. 1 illustrates the importance of the Middle East exports in the global energy markets since 1951. The issue also matters because it affects the ability of the region to convert its resources into development meaning growth, employment creation and the alleviation of poverty for its own people. A key issue concerns how ‘resource nationalism’ is defined. Given the recent revival of interest, there are a multitude of different definitions and interpretations. The International Energy Forum has recently defined it ‘‘nations wanting to make the most of their endowment’’ (Middle East Economic Survey (MEES), 2006, 49, p 39). Bill Farren-Price of MEES described it as a situation where the ‘‘producer countries have moved to maximize revenue from present oil and gas production while altering the terms of investment for future output’’ (MEES, 2006, 49, p 37). Another version is that it is simply an expression of Ray Vernon’s ‘obsolescing bargain’ (Vernon, 1971) whereby once oil was discovered and the investment sunk in development, relative bargaining power switches in favour of the host government which then tries to increase its fiscal take by changing the terms of the original contract. Yet another alternative view is that it is simply a political antipathy to the USA (and by implications its oil companies) and/or economic globalization. In this paper, a simple definition is used. ‘Resource nationalism’ is assumed to have two components – limiting the operations of private international oil companies (IOCs) and asserting a greater national control over natural resource development. This

Background: The study sought to examine the relationship between on-the-job training and employee performance in petroleum companies in Uganda. The study was based on the following objectives; (i) to examine the relationship between job rotation and employee performance in petroleum companies in Uganda; (ii) to examine the relationship between coaching and employee performance in petroleum companies in Uganda, and (iii) to assess the relationship between induction and employee performance in petroleum companies in Uganda.
 Results: The study adopted a correlational research design and collected data using a self-administered questionnaire. The results obtained highlighted that; (i) there is a statistically significant positive relationship between job rotation and employee performance in petroleum companies (r = .492, p<.05); (ii) there is a statistically significant positive relationship between coaching and employee performance in petroleum companies (r = .619, p<.05), and (iii) there is a statistically significant positive relationship between induction and employee performance in petroleum companies in Uganda (r = .670, p<.05). It was observed that the three variables tested were related to employee performance in petroleum companies in Uganda.
 Conclusions: The study recommends that as part of on-the-job training induction, coaching and job rotation should be implemented in that respective order to improve employee performance.

The four companies controlling the production of oil and gas in Abu Dhabi (ADNOC, ADCO, ADMA and ZADCO) are pioneering an effort to organize their wealth of exploration and production (E&P) information into one integrated system. This paper describes the business fundamentals driving the system, the original vision, the project management and the lessons learned as this project nears completion. With the Exploration and Production Information System (EXPRIS), we decided to manage the full spectrum of E&P technical data: geology, geophysics, geodetic, drilling, well and completion, core, petrophysics (logs), PVT, tests, facilities and equipment, production, injection, storage and shipments. The coverage is as wide as is diverse. The four companies have different data models, mainframes and application software. In addition to the old core database systems, there are valuable data in a multitude of "private" scattered databases such as stacks of floppy disks in engineers' drawers! Valuable information exists in non-digital form. Nomenclature and codes such as well naming convention, markers, m stratigraphy, well status and so on are different. Also, each company has a different set of applications linked to various sources of data. EXPRIS is a modern database management system backed by an integrated E&P data model based on a commercial package close to evolving industry standards. The project includes populating the model with legacy data from historical sources, making efficient loading procedures for loading new data, preparing user-friendly data access and visualization tools and connecting the integrated database to a wide range of available applications. Extensive user training and complete documentation are given full consideration. Introduction Abu Dhabi is the largest emirate in the United Arab Emirates. It is rich in oil, gas and condensate reserves. ADNOC is Abu Dhabi's national oil company and is fully owned by the government. ADCO (onshore) and ADMA and ZADCO (offshore) are the operating companies (OPCOs) which deliver about 95% of Abu Dhabi's oil production. ADNOC's share in these companies ranges from 60–88%. The remaining shares are owned by several major oil companies: BP, SHELL, TOTAL, EXXON, MOBIL, JODCO (Japan) and PARTEX (Portugal). By law, all gas reserves and production (associated and non-associated) in Abu Dhabi are owned by the government and exploited by ADNOC on behalf of the government. Figure 1 is a map of Abu Dhabi's oil companies. ADNOC needs continuous and efficient access to the OPCOs data for performance monitoring and technical and planning studies. The OPCOs kept their data on different mainframes and in various databases in digital and non-digital files. Users of main applications, such as reservoir simulators and seismic interpretation packages had their own independent powerful workstations and stand alone data files containing the data needed for these application. Access control and sharing of the vital E&P data was difficult and time consuming. Meanwhile, the E&P industry began nmoving away from mainframes to distributed client server environment using powerful PCs and workstations. Many new core applications are used by multi-disciplinary teams that require simultaneous access to project data.

Soil degradation and, as a result, desertification is a global phenomenon, but in Kazakhstan it is feltmost acutely. The main causes leading to desertification and adverse environmental changes includechemical contamination of the soil. Local and regional chemical pollution of soils is observed near citiesand industrial enterprises, open-pit mining of mineral resources. The dominant group of chemical pollution will be oil itself, gas accompanying it, waste and underground mineralized water. The problem ofdetoxification, cleaning and restoring the properties and fertility of soils polluted with oil and oil productsin order to prevent soil degradation is an important and most pressing issue at present. The main idea ofthe work is to create a solar complex for processing oil and gas waste with the development of fundamentally new solutions in the technological scheme for processing oily waste.In world practice, various methods of cleaning soil and water from oil pollution are applied: mechanical, physicochemical and biological. Not all of them are safe and effective. To solve the problemsof anthropogenic pollution by oil and petroleum products, photothermal methods during cleaning toremove the hydrocarbon portion of the soil. The authors have created a solar system and developed away to prevent soil degradation with the production of petroleum products.The scientific novelty of the work lies in the use of various types of solar constructions in the recycling and utilization of oily wastes, ensuring maximum separation of hydrocarbons from oil wastes, without prejudice to their chemical structure, in the manufacture of modern composite building materials,ensuring the intensification of hardening processes.The results show that an environmentally friendly method has been developed for cleaning oilpolluted soils, soils and oil sludge. This method solves an important environmental problem of cleaningoil-polluted soils, soils and oil sludge, helps restore and prevent the degradation of natural complexes,reduces pollution of the soil layer and water bodies. This will allow utilizing oil barns and sludge collectors in all oil-producing regions using solar energy.Key words: soil degradation, technogenic desertification, oil pollutants, land reclamation, soilcleaning.

The contracting of oilfield service companies by petroleum exploration and production operating companies is different than the contracting of civil engineering, construction or other project-oriented contractors. The relationship between operating companies and oilfield service companies has had a long and unique history which has evolved since the first oil wells were drilled over a century ago. The process of contracting service companies by operating companies for petroleum exploration and production work can be split into three distinct stages: Decide what it is that should be contracted out and what should be kept "in house,"Determine the method to use to select the contractor(s) to perform the work, andAgree to the contractual structure to best reflect the relationship the operating company and the service company wish to initiate and maintain. As there are ongoing changes to the business structures and corporate thinking of both operating and service companies, there are also evolving changes to what are considered "core businesses" and the methods of selecting and contracting service companies by operating companies. Operating companies are recognizing the high costs of tendering for contractor services in terms of personnel time and administrative effort, and are relying more on negotiating and rolling-over existing contracts with their suitable, capable contractors. Partnering, in its many forms and levels, is increasingly being recognized as a useful method to get better work done at cheaper overall costs.

Much of Azerbaijan’s Absheron Peninsula is contaminated by natural U-series and Th-series radionuclides, released in the production of oil and gas and, to a lesser extent, by anthropogenic radionuclides, including Sr-90 and Cs-137, from local industrial activities and trans-border transport. The region contains a large number of pipelines and artificial lagoons that have been used to retain excess groundwater and oil residues. In spite of the long history of the oil and gas industry, radioecological investigations have not been carried out until recently. The purpose of this project is to determine the extent of radionuclide contamination in the Absheron Peninsula using a combination of radiation field measurements and laboratory analyses of selected samples, focusing on ten routes in the vicinity of Baku. The routes were selected as most likely to have become contaminated over time. Soil samples, taken from surface and to a depth of 1 m, aqueous samples from surface waters and marshes, and aqueous and sediment lagoons that showed elevated dosimetry readings, were prepared for gamma spectrometric analysis. Control samples were taken from non-contaminated areas. Samples of air and surface waters were analyzed for Rn-220 and Rn-222. The data will then be used to assess the potential impact of the contamination on the local population. A total slightly 4000 dosimetric readings were taken during the course of this investigation. Of these, 1366 (34%) exceeded 5.4 μR/h. This level is two standard deviations above the mean of the least contaminated route, the 79-km Baku-Guba route. Along the routes Baku-Shemakha and Baku-Guba where no oil and gas activity had taken place, radiation levels of 5.1 ± 1.5 and 4.2 ± 0.6 μR/h, respectively, were obtained. The readings for the route Baku-Guba were then used as representing negligible contamination to which the readings of the other sites were compared. In contrast, along the routes Baku-Lokbatan and Baku-Surakhani, that have seen oil- and gas-related activity, radiation levels were sometimes two or three orders of magnitude higher. The most highly contaminated sites were those of two abandoned iodine recovery facilities along the route Baku-Surakhani, the Ramani and Surakhani sites where readings up to 1450 μR/h were obtained. The contamination is due mainly to uranium and thorium in the formation water associated with the oil and gas. Radon measurements did not exceed 20 Bq/m3.

The purpose of the efficient development of municipal social areas is to ensure a stable growth of the gross regional product (economic growth) due to satisfaction of social needs of the population of oil and gas extraction areas. Development of the oil and gas industry in the Eastern Siberia is one of the priorities of the Russian energy strategy. To identify an efficient business development strategy, SWOT analysis and analysis of Michael Porter’s five competitive forces industry are used. The first method aims to assess internal potential of the company and allows identification of development areas by comparing competitive environment (external threats, favorable possibilities, internal weaknesses, and advantages). SWOT-based strategy development involves several stages. To analyze activities of oil and gas producing companies of the Eastern Siberia, three leading enterprises were selected: a private oil company INK; a private vertically integrated oil company JSC Surgutneftegaz; a partially government-owned company VCNG. The article deals with methods applied to increase municipal and regional financial resources required for satisfying social needs of the population. Strategic issues of economic survival and prosperity of oil and gas producing companies and population of the territories should be solved. It can be possible due to development of markets and diversification of activities of enterprises (Ermilov et al, 1998). Differentiation of approaches to assessing the efficiency of social programs helps to identify possible changes of the component in the coordination of economic and social policies when introducing education, health care, non-for-profit entrepreneurship in northern territories with low-income budgets.