Optimizing Workforce Readiness in Oil and Gas: Aligning SOCAR’s

Educational Programs with Emerging Technological Needs in Refinery

Operations

Name: Ilkin Ibrahimli

University: Baku Higher Oil School
Course: Master of Business Administration (Project Manegement)
Professor: Aytakin Huseynova
Date: 01/25/2024
 ABSTRACT

This research examines the challenges to workforce development in the oil and gas
industry by focusing on SOCAR’s challenges in aligning educational activities with the
demands of its Heydar Aliyev Oil Refinery modernization project. The study will employ
a purposive sample method to choose participants who are directly knowledgeable about
the workforce development challenges the industry and its educational institutions are
experiencing. Thematic analysis will look for patterns, themes, and codes by applying
MAXQDA to open-ended responses. The findings indicate a common trend in which
academic programs usually fall short of the evolving requirements of modernized refinery
operations, leaving the labor market with a persistent skills gap. Consequently, it is
expected to gain insightful responses from the participants, which, after analysis, the study
will identify the themes and codes that inform on potential collaborative programs with
other institutions and universities and even identify the specific likely institutions for
collaboration. The outcomes will provide insight into the skills gap and curriculum
relevance and suggest cooperative projects and skill development.
Keywords: Workforce Development, Educational Alignment, Skills Gap, Curriculum
Enhancement, Oil and Gas Industry, SOCAR, Heydar Aliyev Oil Refinery, Modernization
Project, Engineering Education, Baku Higher Oil School, Corporate Social Responsibility,
Sustainable Development, Training Programs, Human Capital Theory, Systems Theory,
Global Competitiveness, Azerbaijan
 TABLE OF CONTENTS

ABSTRACT..............................................................................................................ii
INTRODUCTION.....................................................................................................1
PROBLEM STATEMENT....................................................................................3
LITERATURE REVIEW..........................................................................................4
THEORETICAL/CONCEPTUAL FRAMEWORK..............................................7
NOVELTY OF THE RESEARCH........................................................................8
CHAPTER OVERVIEWS.....................................................................................8
LIMITATIONS......................................................................................................9
METHODOLOGY....................................................................................................9
DATA COLLECTION...........................................................................................9
SAMPLING SIZE AND METHODS..................................................................10
DATA ANALYSIS..............................................................................................10
RESULTS AND DISCUSSION..........................................................................11
LIKERT SCALE INSIGHTS: EDUCATIONAL EFFICACY ASSESSMENT
...........................................................................................................................11
INTERVIEWS SUMMARY: ANALYZING CURRICULUM GAPS IN
LOCAL UNIVERSITIES.................................................................................15
SHORTCOMINGS OF TRAINING AND DEVELOPMENT PROGRAMS IN
SOCAR.............................................................................................................17
CONCLUSION AND RECOMMENDATIONS....................................................20
BIBLIOGRAPHY...................................................................................................22
 1

INTRODUCTION

To lead them through the energy transition and assist in creating new, greener
enterprises, energy, and natural resource corporations must locate and integrate
individuals with various capabilities. Finding the right balance between hiring people
with the abilities to sustain legacy companies and attracting the talent needed to seek
new prospects is a challenge many organizations face. Approximately 80% of workers in
the oil and gas industry believe that inclusion is essential in their workplace, according
to a recent study on the topic by Bain (Blair, 2022). However, the oil and gas industry
lags behind other sectors in promoting inclusion. Leaders may aid talent pool retention
and integration by demonstrating their unwavering commitment to the energy shift,
encouraging personal development, and creating links between different staff groups.
Promoting research and education in Azerbaijan is one of SOCAR’s most
significant Corporate Social Responsibilities (CSR), as these areas are intimately
connected with a society’s advancement. The Science Fund is one obvious illustration of
SOCAR’s significant contributions to society in this area. Under President Ilham
Aliyev’s guidance, SOCAR has become the leading institution in the country for
education by investing in and donating human resources resulting from the conversion
of Oil (often referred to as “black gold”). SOCAR’s Baku Higher Oil School has
provided top-notch engineering education since it debuted in 2012 (Aliyev, 2018). Since
the first graduating year of this institution in 2017, all alums have found suitable
employment thanks to deliberate procedures (SOCAR, n.d). SOCAR knows that funding
for foreign language preschool and secondary school education programs is necessary
for obtaining higher education in those languages. In light of this, the business-
sponsored instruction in both English and French at the 2012-founded Lycée Français de
Bakou and the 2012-founded Azerbaijan British College (SOCAR, n.d). The corporation
also implements paid on-the-job training and scholarship programs to meet the young
people’s ambitions for science, education, and training.
 2

SOCAR aims to impart knowledge of the quickly developing digital era

technology, both theoretically and practically. Training highly skilled workers and
advancing the careers of currently employed personnel are highly valued by SOCAR.
SOCAR’s Training, Education, and Certification Department (TECD) organizes
excellent, globally compliant training for various professions to achieve this. TECD’s
principal activities are teaching offshore oil workers in compliance with international
conventions, standards, and agreements, preparing workers for the requisite professions,
and monitoring SOCAR’s requirements for engineers and technicians (Socar, n.d).
Additional responsibilities within the Department’s jurisdiction include worker
attestation, international standard certification, and educational units that teach about
labor protection and safety laws.
The backdrop of SOCAR’s modernization project generates a crucial demand for
expert talents in technical disciplines, notably mechanical, instrumentation, electrical,
and civil engineering. Even though SOCAR is an educational school, the curricula
offered and the complex demands of contemporary refinery operations are very
different. That owes to the quickly evolving technology than anticipated. The skills
needed to successfully carry out SOCAR’s large-scale modernization projects, like the
Heydar Aliyev Oil Refinery Reconstruction and Modernization project, are not covered
by the current educational landscape, which primarily focuses on chemical and
automation engineering.
When the complex relationship between current academic programs and the
changing needs of SOCAR’s modernization activities is understood, it will be possible
to pinpoint the root causes and implications of the workforce’s challenges in meeting the
specialized demands of modern refinery operations. Furthermore, by providing a fresh
approach to the recognized problem, it hopes to advance workforce development and
scholarly conversation significantly. This will help to facilitate the smoother transition
between educational programs and the rapidly evolving technological landscape of the
oil and gas business.
 3

PROBLEM STATEMENT

As part of SOCAR’s ongoing redevelopment of the Heydar Aliyev Oil Refinery,

personnel with expertise in various specialized technical disciplines, including
mechanical, instrumentation, electrical, and civil engineering, are needed. Sadly, given
that chemical and automation engineering comprise the bulk of the training courses
offered by SOCAR’s educational institute, there seems to be a disconnect between the
knowledge and abilities taught in the current academic curriculum and the intricate
requirements of modern refinery operations (Aliyev, 2018). Insufficient educational
alternatives cause graduates’ skill sets to be too narrow, leaving them unprepared for the
evolving refining industry. This lack of availability directly results from the
modernization project’s requirement for personnel with expertise outside the typical
focus on chemical and automation engineering to integrate cutting-edge technologies. A
lack of local expertise in crucial technological domains is the outcome, impeding the
accomplishment of the broader modernization objectives and ensuring the smooth
functioning of SOCAR.
In addition, historical results from graduates of other colleges, such as Baku
Higher Oil School of SOCAR, point to a severe shortfall in meeting the specific
technology needs that arise from the modernization program. This shortfall highlights
the significance of carefully designed educational programs adapted to the ever-
changing needs of the oil and gas industry, making it more challenging for SOCAR
HAOR to function effectively. To promote both local expertise and global
competitiveness, it is necessary to resolve this mismatch and guarantee that the
personnel is appropriately prepared to manage the nuances of modernized refinery
operations.
 Research Aim: To check out the curriculum alignment of educational
organizations with the specialized talent requirements of modernized refinery
 4

operations and to advocate strategies for curriculum enhancement and a team of

workers’ development to satisfy those rising needs.

RESEARCH OBJECTIVES

1. Skill Gap Analysis: Identify the local workforce’s specific skills and knowledge
gaps.
2. Curriculum Assessment: Assess the existing curricula of SOCAR’s educational
institution, particularly in chemical and automation engineering, to evaluate their
relevance and applicability to the broader needs of modernized refinery
operations.
3. Recommend Curriculum Enhancements: Propose curriculum modifications or the
introduction of new specialized programs that align with the technological
demands of the modernization project.
4. Collaborative Strategy Development: Develop a collaborative framework
involving SOCAR, its educational institution, and other relevant universities to
enhance educational outcomes and produce a workforce ready to handle advanced
technologies in refinery operations.
 Hypothesis: The contemporary curriculum cognizance of academic organizations
does not accurately cater to the emerging specialized talent necessities of SOCAR
HAOR’s modernization project, resulting in a capabilities mismatch and
workforce shortfall in vital engineering disciplines
 Research Question: How can educational institutions adapt their curricula and
training programs to better prepare graduates for the specific technological
demands of modernized refinery operations, particularly in mechanical,
instrumentation, electrical, and civil engineering disciplines?
 5

LITERATURE REVIEW

According to a 2016 analysis by Houston-based consultancy Graves & Co., Oil

and gas corporations have eliminated over 350,000 positions globally since oil prices
started to decline in 2014. The 1980s oil price collapse had already hurt the sector,
turning off a generation of potential employees and creating a labor crisis. The biggest
company in Azerbaijan and a taxpayer, SOCAR, is a state-owned company that works
for the government in the oil sector. As of the end of 2018, 51,125 people were
employed by the organization (Gasimov & Hajiyev, 2020). Out of 65.4 billion AZN in
assets, the company brought in 83.8 billion AZN in revenue in 2019 (Azernews, 2020).
Additionally, the company’s income came mainly from the sale of crude Oil, which
accounted for 61% of total revenue (SOCAR, n.d). Petroleum products, petrochemical
products, and natural gas followed closely behind, accounting for 26.5%, 4.7%, and
4.9% of revenues, respectively. 76% of the company’s total revenue came from its
activities in Switzerland (Azernews, 2020) . Merely 7.3% of its total income is derived
from Azerbaijan.
The lack of engineers to complete large-scale projects of regional, national, and
even worldwide significance has long been recognized as a global skills deficit in
engineering. Nonetheless, there is a growing need for multidisciplinary engineers in
several areas, such as robotics, additive manufacturing, industry digitalization,
renewable technologies, and 6G networks. Along with the more “traditional”
engineering jobs in civil, mechanical, electrical, and aeronautical sectors, these fields
also provide career opportunities. According to the 2020 Global Engineering Capability
Review, the engineering skills gap will influence the United Nations SDGs related to
renewable energy, sustainable cities, and actions to combat climate change (Azernews,
2020). Although the UN goals could not be achieved without a suitable talent pool with
the required level of skills, the review found that engineering provided a critical lever for
states to achieve these goals.
 6

In Europe, engineering and construction skills were among the most sought-after,
as per the 2019 Labour Shortages and Surpluses Report published by the European
Commission. They pointed out that several professions, including software, mechanical,
electrical, and civil engineering, have a noticeable labor shortage. The scarcity of
applicants from outside the EU and the drop in the number of graduates from European
colleges are the causes of this deficit. The global talent rivalry exacerbates the skills
dilemma as countries struggle to fill the positions necessary to proceed on other
engineering projects and create infrastructure and power systems. Engineers and
technicians are needed annually to keep up with infrastructure and other engineering
projects, according to the UK’s EngineeringUK (Azernews, 2020). An estimated
124,000 core engineering-skilled jobs and 79,000 ancillary professions require a
combination of technical competence and different skill sets, such as project
management, of the 203,000 positions needed annually.
Therefore, addressing the underlying issues is essential to addressing the scarcity
of engineering talent. If this is not done, businesses will not have enough personnel to
finish engineering projects, which would harm national economies. To find a solution,
government agencies, legislators, academic institutions, and engineering firms must
work together, coordinate their efforts, and have a shared knowledge of the problems.
Although some work has already been done, it has been acknowledged that there is a
time limit on this. Research by Johnson et al. (2021) addresses the industry’s difficulties
and the requirement for graduates to have a comprehensive skill set that covers
mechanical, electrical, civil, and instrument engineering. The study’s conclusions
indicate a common trend in which academic programs usually fall short of the evolving
requirements of contemporary refinery operations, leaving the labor market with a
persistent skills gap.
Furthermore, the study conducted by Barner et al. (2022) highlights this
problem’s worldwide scope and the education requirement for companies that operate
business abroad. The results demonstrate how inadequate traditional curricula are at
 7

preparing graduates for the quick speed of technical changes in the oil and gas industry,
with a focus on integrating new technologies in refinery operations.

THEORETICAL/CONCEPTUAL FRAMEWORK

A combination of the Human Capital Theory and the Systems Theory is used in
the theoretical framework of this study. Daniel Bell subsequently established the
fundamental characteristics of a post-industrial society. He created the unique
sociological concept of the pivotal principle for each of the three social domains:
culture, economy, and politics (Gruzina, Firsova, & Strielkowski, 2021). As far as
“human capital” and education are concerned, Becker suggests the same may be true of
other expenditures in physical capital. His work has allowed economics to explore the
relationship between economic growth and behavior and the workings of the human
brain (Koval & Mikhno, 2019). According to Becker’s assertion, understanding and
lessening poverty is the central goal of economics. He is well known for his research on
microeconomics and its relationship to human capital, behavior, and economic growth.
Indeed, human capital grows productivity in areas of life like training,
employment, and health, as Li et al. (2017) point out. Saying that the human capital
approach is one of the most experimentally implemented economic theories and
contributes to explaining international trade patterns is scarcely hyperbole. Indeed,
variations in a nation’s human capital supply may greatly influence people’s
productivity and quality of life. This .theory’s practical application to human capital has
significantly increased productivity and expanded access to products and services in
nations like China and the United States.
Bronfenbrenner’s systems theory, which emphasizes the connections and
interactions between various system components, supports the human capital theory.
The conceptual frameworks provide a basis for internalizing the intricate significance of
education on industrial progress (Bronfenbrenner, 1994). Therefore, the frameworks
 8

mentioned above yield a significant foundation for evaluating the intricate connection
between labor market requirements and SOCAR’s training programs aimed at
modernization.
NOVELTY OF THE RESEARCH

Through cooperation with SOCAR, its educational institutions, and other

organizations, the foundation this study provides will enable higher educational
achievement. This collaborative approach expedites aligning academic curricula with
business objectives and provides a fresh perspective on workforce challenges. The
application of theoretical frameworks to SOCAR’s real scenario illuminates how these
principles should direct workforce development and curriculum enhancement initiatives,
which is a useful, practical benefit. The study’s thorough analysis of SOCAR’s historical
and contemporary contributions to research, education, and corporate social
responsibility further improves understanding of the matter.

CHAPTER OVERVIEWS

Ch Introduction: Give background information, objectives, hypothesis and

apt problem statement
er
1
Ch Literature Review: A review of the existing literature on the study subject,and
apt other related theories, concepts, novelty, and limitation.
er
2
Ch Methodology: Data Collection, analysis, sample size and sampling, finding and
apt results.
er
3
Ch
apt Results and Discussion: Presentation and discussion if results.
er
4
Ch Conclusion and recommendations. Sum up of the research report, and
apt recommendations based on the results and recommendations for future
er research.
5
 9

LIMITATIONS

The research aims to shed light on the workforce development issues SOCAR
confronts, but some limitations should also be noted. Because of the study’s context-
specific focus on SOCAR’s modernization project, its findings might not have translated
as well to other situations involving Oil and gas. It is possible that the multidisciplinary
focus on technical disciplines like mechanical, electrical, mechanical, and civil
engineering will not be able to meet every possible need for skills in the workforce.
Consequently, although theoretical frameworks such as Human Capital Theory and
Systems Theory offer thorough knowledge, they might not be enough to fully convey
the complex dynamics of SOCAR’s industrial and educational systems. Implementing
the suggested collaborative structure could also be difficult because of organizational
complexity and conflicting stakeholder interests.

METHODOLOGY

The research methodology for the study is a comprehensive approach combining

qualitative and quantitative data collection and analysis to understand the workforce
development challenges within SOCAR and the alignment of its educational programs
with industry needs.

DATA COLLECTION

Primary data has been obtained through structured interviews with a diverse group
of participants. The interviewees have included alumni from the Baku Higher Oil
School, and relevant members of SOCAR's staff. Human resource specialists from
SOCAR HAOR, along with representatives from partner universities and institutions,
have also provided valuable insights. These interviews, utilizing open-ended questions,
have been instrumental in collecting qualitative data that offer depth and context to the
study. Additionally, Likert scale responses have facilitated the gathering of quantitative
 10

data, allowing for a more nuanced analysis of attitudes and perceptions. For the
secondary data, the study has leveraged articles, reports and journals from reputable
publishers. This literature has been crucial in benchmarking and comparing the local
context with international standards and practices, thereby enriching the study's findings
with a global perspective. Each individual interview together with respondents of likert
scale questions has contributed significantly to the primary data, offering unique
viewpoints that reflect the real-world challenges and opportunities faced by
professionals in the industry.

SAMPLING SIZE AND METHODS

The study has employed a purposive sampling method to select participants who
possess firsthand knowledge of the workforce development challenges facing SOCAR
and its associated educational institutions. This selection has included curriculum
developers, SOCAR alumni, and professionals from partner institutions, all chosen for
their relevant qualifications and the value they bring to the research. Additionally, the
study has included graduates from SOCAR’s Baku Higher Oil School who have
subsequently been employed by SOCAR HAOR. To further enrich the research, the
study has extended its sampling to incorporate five individual interviewees, each
offering a distinct perspective on the workforce evolution within SOCAR. These five
individuals have been specifically selected due to their unique insights and experiences.
Altogether, the study has aimed to gather data from a total of 55 respondents across the
specified categories.

DATA ANALYSIS

For the quantitative data, after analyzing the Likert scale responses, statistical
software such as SPSS has been utilized to compute frequencies and descriptive
statistics, providing a quantitative assessment of the skills gap and the relevance of the
 11

curriculum. In tandem, for the qualitative data, thematic analysis has been conducted to
identify patterns, themes, and codes, applying MAXQDA to the open-ended responses.
This method has been instrumental not only in highlighting specific areas of knowledge
and skill deficits but also in offering insights into potential collaborations. Moreover, the
study has incorporated detailed qualitative data from five individual interviewees,
enriching the analysis with their personal experiences and expert testimonies. These
narratives have provided an in-depth understanding of the practical challenges and have
been pivotal in capturing the nuanced realities of workforce development.

RESULTS AND DISCUSSION

This study aimed to evaluate the skills and knowledge gaps among graduates of
SOCAR’s Baku Higher Oil School currently employed at SOCAR HAOR and to assess
the alignment of the school's curriculum with the demands of modernized refinery
operations, particularly in light of SOCAR HAOR’s modernization initiative. Insightful
responses from participants were solicited, including those from individual interviews.
Through thematic analysis of this qualitative data, the study will identify key themes and
codes that will underpin recommendations for enhancing the skillsets and knowledge
base at SOCAR’s Baku Higher Oil School. The goal is to improve the relevance and
applicability of its programs to SOCAR HAOR’s modernization efforts, which
exemplify the broader trend towards the modernization of refinery operations.
Additionally, the qualitative data has revealed potential for collaborative programs with
other educational and training institutions. The study will pinpoint specific institutions
and universities that could be ideal partners for such collaborative ventures.

LIKERT SCALE INSIGHTS: EDUCATIONAL EFFICACY ASSESSMENT

To conduct the research, 50 respondents, including engineers and HR professionals from

SOCAR HAOR, as well as graduates from Baku Higher Oil School (BHOS) and other
 12

local universities, participated by responding to the Likert scale questions presented in

Table 1. This diverse group of participants ensures a comprehensive perspective,
encompassing both the industry's internal viewpoint and the academic perspective,
thereby enriching the study with multifaceted insights into the alignment of educational
programs with industry needs.

Table 1: Likert Scale Questions

# Questions Strongly Disagree Neutral Agree Strongly
Disagree Agree
1 Do you agree that current academic
programs adequately address the
evolving demands of modernized
refinery operations in the oil and gas
industry?
2 How strongly do you agree that
SOCAR’s educational activities are
aligned with the specific talent
requirements of the Heydar Aliyev
Oil Refinery modernization project?
3 Do you agree that the skills gap in
the labor market for technical
disciplines hinders the efficiency of
modernized refinery operations in the
oil and gas industry?
4 How strongly do you agree that
collaborative programs between
SOCAR’s educational institutions
and other universities can
significantly contribute to addressing
workforce development challenges in
the oil and gas sector?
5 Do you agree that the proposed
research objectives effectively
identify and address curriculum gaps
to meet the specialized needs of
modernized refinery operations?
6 Do you agree that current educational
programs are effective in preparing
graduates for mechanical,
instrumentation, electrical, and civil
engineering roles within the oil and
gas industry based on your
experience?
 13

7 To what extent do you agree that a

collaborative framework involving
SOCAR, its educational institution,
and other universities is crucial for
enhancing educational outcomes and
addressing workforce challenges in
the oil and gas sector?

Figure 1 below illustrates the results from the analysis of the Likert scale questionnaires.

Likert Scale Results

50%
40%
30%
20%
10%
0%
Q1 Q2 Q3 Q4: Q5 Q6 Q7

Strongly Disagree Disagree Neutral

Agree Strongly Agree

Figure 1: The results obtained from the analysis of the data collected by the Likert scale
questions
Responses for each question indicates the following results:

 Academic Programs and Industry Demands (Q1): The Likert scale feedback
depicts a range of perspectives on the adequacy of educational programs in
addressing the evolving requirements of the oil and gas sector’s modernization.
There's a notable level of ambivalence regarding the effectiveness of existing
academic curricula in meeting the dynamic needs of modern refinery operations.

 Alignment of SOCAR’s Educational Activities (Q2): Concerning SOCAR’s

educational alignment with the Heydar Aliyev Oil Refinery's modernization
needs, the responses are varied, with many respondents neither agreeing nor
disagreeing, which suggests a need for more definitive alignment.
 14

 Skills Gap Impact on Efficiency (Q3): There is a clear acknowledgment among

the majority that the technical skills shortage is impeding the operational
efficiency of modern refineries, indicating widespread agreement on the urgency
of addressing this gap.

 Collaborative Programs’ Contribution (Q4): As for the role of joint initiatives

between SOCAR’s educational branches and other academic institutions, the
majority view these partnerships as beneficial, pointing towards a positive stance
on collaborative efforts to tackle educational challenges in the sector.

 Effectiveness of Proposed Research Objectives (Q5): Opinions on the adequacy

of the proposed research goals in pinpointing and filling curricular voids are
mixed, with a significant number of neutral responses indicating the possibility for
further enhancement of these objectives.

 Educational Programs’ Effectiveness (Q6): The feedback also reveals a

predominant sentiment of reservation about the current educational programs'
capacity to sufficiently prepare graduates for roles in mechanical, instrumentation,
electrical, and civil engineering within the industry. This suggests an opportunity
to strengthen the curriculum.

 Importance of Collaborative Framework (Q7): There is a strong agreement

among respondents that a collaborative framework involving SOCAR and
educational institutions is crucial for improving educational outcomes and
addressing workforce challenges. This underscores the perceived importance of
collaboration in industry education.

The results demonstrate that while there is a recognition of the skills gap and the
need for collaborative efforts in educational and workforce development, there is also a
degree of uncertainty about the current alignment and effectiveness of academic
 15

programs relative to industry needs. The mixed responses highlight areas for potential
improvement in education strategies to better serve the evolving demands of the oil and
gas industry.

INTERVIEWS SUMMARY: ANALYZING CURRICULUM GAPS IN LOCAL

UNIVERSITIES

Table 2 integrates insights derived from individual interviews, providing a detailed

overview of the present educational and operational landscape.

Table 2: Overview of individual interviews


Date of Interview Duration Interviewee Name
1/10/2024 30 minutes Elchin Mammadov
16
Company/Facility/University graduated Position Topic of Interview Summarized Results
Our national mechanical engineers encounter significant
challenges when using contemporary drawing and
simulation software. Additionally, there's a substantial
language-related skill gap that hinders their ability to
effectively read and comprehend the technical
datasheets and documentation associated with
Exploring the Skill mechanical equipment. To bridge these gaps, especially
Gaps Between for our junior engineers, we're looking at a training
National and period of at least two years. To address this, we're
Mechanical International considering the establishment of a dedicated
SOCAR SDM/HAOR/Azerbaijan State Oil Chief Mechanical Mechanical Engineering Department at SOCAR's Baku
and Industry University (ASOIU) Engineer Engineers Higher Oil School.

In my observation, the tendency at both national

SOCAR SDM/HAOR/Baku State University Senior HR
1/12/2024 30 minutes Nazlı Murselova (BSU)
SOCAR SDM/HAOR/Baku Higher Oil
1/15/2024 1 hour Heydar Najafov School (BHOS)
SOCAR SDM/HAOR/Baku Engineering
1/18/2024 45 minutes Subhan Mammadov University(BEU)
SOCAR SDM/HAOR/Baku Higher Oil
1/21/2024 30 minutes Alimirza Huseynov School (BHOS)
universities and SOCAR's in-house training facilities has
been to emphasize theoretical knowledge over practical
skills. Recognizing this gap, SOCAR SDM is actively
Evaluating the seeking partnerships with various prestigious
Alignment of international universities and training providers, such as
National University ICARO, IFP, and BASF, to enhance the practical skill sets
Curricula with of our local workforce. It's becoming increasingly clear
SOCAR's that we must engage in a collaborative effort with these
Recruitment academic institutions to realign their curricula to meet
Specialist Standards the specific operational needs and demands of SOCAR.
Graduates from the Baku Higher Oil School (BHOS) have
shown remarkable ease in acclimating to the work
environment. Their collaborative nature makes them
quite approachable and they consistently deliver tasks
on time and with superior quality. Their educational
foundation is robust, with a strong theoretical
Assessing Skill understanding, as well as proficient software and
Disparities Between language skills. The chemical engineering curriculum at
Graduates of Baku the university aligns well with what we look for at
Production Higher Oil School SOCAR, satisfying our criteria and significantly reducing
Lead and Other National the time required for new hires to become fully
Engineer Universities productive.
SOCAR is transitioning into a modern enterprise, and
this evolution demands contemporary skills such as
proficiency in simulation software, data analytics, and
An ASOIU critical thinking—skills that go beyond rote
Graduate's memorization. There's a growing need to enhance the
Perspective on research, investigation, and analytical abilities of our
Curriculum graduates. BHOS is unique in fostering an educational
Alignment with environment that cultivates these competencies, unlike
SOCAR's Skill other local universities and training centers within
Requirements and SOCAR. As a result, graduates from other local
Process the Learning institutions often rely on the expertise of BHOS alumni
Engineer Journey to acquire these essential modern skills.
Chemical engineering graduates from BHOS possess a
The Versatility of skill set that's well-suited for roles in the business
Chemical sector. To gain a competitive edge, it's beneficial for
Engineering: chemical engineers to enhance their expertise with a
Exploring the theoretical understanding of business and finance.
Business Various Domains There's definitely scope within our educational
Excellence Chemical Engineers framework to integrate such subjects into the chemical
Specialist Thrive In engineering curriculum.

Baku Higher Oil School (BHOS) uses the curriculum from Heriot-Watt
University (United Kingdom) for its Chemical and Petroleum Engineering programs.
This addition to the curriculum improves the programs' proficiency. This is a great
model for other local higher education institutions, showing how incorporating
curriculum from universities in rich nations may significantly improve the engineering
abilities of local engineers, especially in the mechanical, electrical, civil, and
instrumentation engineering sectors.
 17

The curriculum of Heriot-Watt University is unique compared to local educational

institutions in Azerbaijan since it is closely aligned with industry demands, has received
worldwide recognition, and places a significant emphasis on research-led instruction. To
make sure that students are knowledgeable about the most recent developments in the
field, courses are often updated with the most recent research. Furthermore, the
university's programs are highly regarded in international rankings and often
acknowledged by professional associations, attesting to their caliber and applicability.
The competitiveness of Heriot-Watt University's educational offerings is further
reinforced by its embrace of cutting-edge teaching techniques and emphasis on career
development via real-world experiences and networking opportunities.

It is possible to implement extensive educational programs from renowned

universities with a focus on mechanical, electrical, instrumentation, and civil
engineering, such as Heriot-Watt University, in order to successfully solve the problem
of the skill gap. To improve practical skills, these programs—which are renowned for
their demanding coursework and industrial relevance—can be combined with practical
training and real-world projects. Building relationships with these colleges may also
help with information sharing, access to leading edge research, and the creation of
customized training programs that meet the unique requirements of the business. This
cooperative approach makes sure that knowledge and skills are updated continuously,
keeping up with the quick changes in industry standards and technology.

SHORTCOMINGS OF TRAINING AND DEVELOPMENT PROGRAMS IN

SOCAR

On the other hand, SOCAR itself has its own training programs aimed at
enhancing the skills of its workforce (SOCAR, 2021).
According to the company's Sustainable Development report (2021), 9,884 people
 18

participated in advanced training, retraining, and awareness workshops at SOCAR's

training facilities. Additionally, 935 SOCAR workers participated in 45 distinct training
sessions led by other training organizations. Information technology (IT), behavioral
skills, technical competence, and health, safety, and environment (HSE) were just a few
of the subjects covered in these training sessions.

The results are shown in the following chart.

Figure 2. Type and number of training sessions

SOCAR has implemented an innovative program titled "From Manual Worker to
Engineer" designed to bridge the skill gap by identifying workers with high potential
and providing them with targeted training. This initiative strategically transforms manual
laborers into skilled engineers, leveraging their existing knowledge of the company's
operations while supplementing it with rigorous technical education. To enhance the
program's effectiveness, it could incorporate mentorship opportunities, allowing
experienced engineers to guide trainees through complex challenges, thus fostering a
culture of continuous learning and development. Additionally, integrating feedback
mechanisms and continuously adapting the curriculum based on industry trends and
technological advancements can ensure the program remains relevant and effective in
 19

equipping participants with the necessary competencies to excel in their new roles as
engineers.

A total of 585 individuals participated in tests for 71 open positions as part of the
"From Manual Worker to Engineer" development project. The goal of this initiative is to
internally fill engineering openings with highly qualified people by methodically
promoting manual laborers with necessary advanced degrees to engineering positions.

The program's official launch was announced to the Company's facilities, along
with training sessions for HR staff on the procedure. The Company then developed and
carried out scheduled activities inside the parameters of the Development Program. This
involved examining and classifying information on the staff members who were going to
be included in the Program's Full and Accelerated sections, such as their educational
history, length of service, and credentials.

280 workers passed the test examinations that constituted the first round of the
selection procedure out of the 585 employees who took them. Furthermore, as part of an
effort to help 150 veterans of the Second Karabakh War succeed in their careers, they
were excluded from the Program's selection phase, with the focus being only on
completing educational requirements. As such, throughout 2021, 430 workers in total
were entered into the Development Programs.

Figure 3 below depicts the visual representation of the data obtained from the report.
 20

Figure 3. The target audience of the From Manual Worker to Engineer Development
Program
The training program has produced excellent results, but its effectiveness is
compromised by its antiquated content. The program's techniques and material seem out
of date; they don't keep up with the quick changes in technology and business practices.
This disparity implies that, even if the program's underlying ideas may be good, its
curriculum urgently needs to be updated to take into account both present circumstances
and emerging trends.

The program's obsolescence may show up in a number of ways, such the use of
antiquated tools for hands-on training, a curriculum that doesn't take into account the
most recent rules, laws, or technological advancements, or a dependence on teaching
strategies that don't engage today's learners. The workforce's immediate productivity is
negatively impacted by this detachment from the status of the business, and it may also
compromise their long-term career prospects since they may lack the skills necessary to
use the newest technology or processes.
 21

To address these issues, the program might require a thorough reassessment to

identify areas where contemporary theories, practices, and technologies can be
integrated. This could involve partnerships with technology providers, consultations
with industry experts, and a review of best practices from leading educational and
professional training programs globally. By doing so, the program can ensure that its
participants are equipped with up-to-date skills that are in demand, thereby enhancing
their contribution to the company's strategic objectives and their own professional
development.

Unlike SOCAR, BP’s training approach integrates various techniques to ensure a

well-rounded development of its workforce. This includes a mix of classroom learning
and digital platforms, hands-on experience within the work setting, and realistic
simulations. Employees are also supported through mentorship, with clear benchmarks
for role-specific competencies. Safety, being paramount in BP’s operations, is a core
focus of training. The company also invests in the continuous growth of its employees
and leadership cultivation, with performance evaluations to measure training impact. BP
aligns its training with global best practices to uphold quality and consistency across its
international presence, aiming to foster a workforce that is skilled, flexible, and safety-
oriented (BP, n.d).

CONCLUSION AND RECOMMENDATIONS

In conclusion, this study has examined the barriers to workforce development that
SOCAR faces, particularly in light of its efforts to modernize Azerbaijan's oil and gas
industry. By utilizing a multidisciplinary and context-specific methodology, this study
provides fresh insights on improving the workforce. Notwithstanding certain intrinsic
constraints, such as the possibility of restricted generalizability linked to the all-
encompassing mixed-methods strategy of interviews, statistical analysis, and ethical
considerations, the research offers a full review of the relevant concerns. Results from
this study should provide a better grasp of the widespread skills gap, an assessment of
 22

the relevance of SOCAR's present educational programs, and suggestions for

cooperative projects and skill-building techniques.The research highlights the imperative
for evolving educational and training frameworks to be in tandem with the rapidly
changing technological landscape in the oil and gas industry.
SOCAR should approach workforce development from a variety of angles, with a
particular emphasis on curriculum improvement, strategic collaborations between
industry and academics, and ongoing education. The addition of cutting-edge
technological modules to educational programs, the promotion of cooperative
partnerships between academic institutions and business leaders, and the funding of
ongoing professional development are all necessary initiatives. In order to ensure that
the programs are relevant and successful, it is imperative that strong feedback systems
be established and that worldwide best practices be adapted. The aforementioned
initiatives are designed to provide the labor force with the essential skills and abilities
required to fulfill the needs of the business and stimulate further innovation in the oil
and gas domain.
 23

BIBLIOGRAPHY

Aliyev, S. (2018). State-owned oil company case studies: SOCAR. SSRN

Electronic Journal. https://papers.ssrn.com/sol3/papers.cfm?
abstract_id=3835699
Azernews. (2020, June 30). SOCAR reveals consolidated financial report for 2019.
Retrieved from https://www.azernews.az/oil_and_gas/166475.html
Barner, M. S., Adam Brown, S., Bornasal, F., & Linton, D. (2022). The tangibility
of representations in engineering courses and the workplace. Journal of
Engineering Education, 111(1), 162–184.
Blair, B. B. (2022). Developing talent strategies for the energy transition. Bain.
Retrieved from https://www.bain.com/insights/developing-talent-strategies-
for-energy-transition-enr-report-2022/
BP. (n.d). Learning and development at BP. Retrieved from
https://www.bp.com/en/global/corporate/careers/life-at-bp/learning-and-
development.html
Bronfenbrenner, U. (1994). Ecological models of human development.
International encyclopedia of education, 3(2). 37–43.
Gasimov, A. A., & Hajiyev, G. B. (2020). ON IMPROVEMENT OF MODERN
SOFTWARE FOR MANAGEMENT OF OIL AND GAS INDUSTRY
ENTERPRISES OF THE REPUBLIC OF AZERBAIJAN. In A. A.
Gasimov, Economic and Social Development: Book of Proceedings. 20–28.
Gruzina, Y., Firsova, I., & Strielkowski, W. (2021). Dynamics of human capital
development in economic development cycles. Economies, 9(2). 2-18
Johnson, M. K., & Cunningham, C. (2021). Failure and improvement in
elementary engineering. Journal of Research in STEM Education, 7(2), 69–
92.
Koval, V., & Mikhno, I. (2019). Ecological sustainability preservation of national
economy by waste management methods. Economics. Ecology. Socium,
3(2).
Li, H., Loyalka, P., Rozelle, S., & Wu, B. (2017). Human capital and China’s
future growth. Journal of Economic Perspectives, 31(1), 25–48.
 24

SOCAR. (2021). Sustainable development report. Retrieved from

https://www.socar.az/en/page/sustainable-development-reports
Socar. (n.d). The Heydar Aliyev oil refinery reconstruction and modernization.
Retrieved from https://www.socar.az/en/project/the-heydar-aliyev-oil-
refinery-reconstruction-and-modernization
SOCAR. (n.d). Science education. Retrieved from
https://www.socar.az/en/page/science-education