THE OIL INDUSTRY IN THE SATELLITE STATES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP83-00415R008800190001-3
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 57
• Document Creation Date: December 22, 2016
• Document Release Date: June 18, 2012
• Sequence Number: 1
• Publication Date: September 21, 1951
• Content Type: REPORT

Declassified in Part - Sanitized Copy Approved for Release 2012/06/18: CIA-RDP83-00415R008800190001-3
QOi.0T~E1ACV~*R?' Y
T-Hi (TL -l;j J.,r'Iz`T ^F 'i 1 ~:~ ,~~:i 1_~:T `1':
Declassified in Part - Sanitized Copy Approved for Release 2012/06/18: CIA-RDP83-00415R008800190001-3
 Declassified in Part - Sanitized Copy Approved for Release 2012/06/18: CIA-RDP83-00415R008800190001-3
FORM NO.
MAY I94910.561
COUNTRY Satellites
SUBJECT The Oil Industry in the Satellite States
PLACE
ACQUIRED
DATE ^INFO
~
THIS DOCUMENT CONTAINS INFORMATION AFFECTING THE NATIONAL DEFENSE
OF THE UNITED STATES WITHIN THE MEANING OF THE ESPIONAGE ACT 50
U. S. C.. 31 AND 32. AS AMENDED. ITS TRANSMISSION OR THE REVELATION
OF ITS CONTENTS IN ANY MANNER TO AN UNAUTHORIZED PERSON IS PRO-
HISITED BY LAW. REPRODUCTION OF THIS FORM IS PROHIBITCD
DATE DISTR. 21 Sept. 1951
N 0. O F PAGES 1
NO. OF ENCLS.
(LISTED BELOW)
SUPPLEMENT TO
REPORT NO.
THIS IS UNEIALUATED INFORMATION
The attached study of the oil industry in the Satellite States is being sent
to you for retention.
CENTRAL INTELLIGENCE AGENCY REPORT
INFORMATION REPORT CD NO.
CLASSIFICATION SECRET/CONTROL'US OFFICIALS ONLY
111S DO CL' KIT gS AN ENCLOSURE ATTAR"'
DO NUTWA0
CLASSIFICATION SECRET/CONTROL US QFFICIALS ONLY
DISTRIBUTION
Declassified in Part - Sanitized Copy Approved for Release 2012/06/18: CIA-RDP83-00415R008800190001-3
 r,nx1 -HUM
Declassified in Part - Sanitized Copy Approved for Release 2012/06/18: CIA-RDP83-00415R008800190001-3
S!A TFLT ,T'?'T
U, S. c I' J
TROL
Declassified in Part - Sanitized Copy Approved for Release 2012/06/18: CIA-RDP83-00415R008800190001-3
 Declassified in Part - Sanitized Copy Approved for Release 2012/06/18: CIA-RDP83-00415R008800190001-3
TJ: OIL INDUSTRY OF THE SATELLITE STATES.
April. 1951.
Declassified in Part - Sanitized Copy Approved for Release 2012/06/18: CIA-RDP83-00415R008800190001-3
 Declassified in Part - Sanitized Copy Approved for Release 2012/06/18: CIA-RDP83-00415R008800190001-3
TH OIL DTIASTRY OF THE SATgLr ITS STA M
OF CENTRAL EUROPE
INDU OF CQfTMTS.
PAR*
I. DITRODUCTION T7
II.c Pi'ea
uotion ... . 3.
8. Drilling and Exploration ? . . . . . . . . 5-
C. Refining . . . . . . . ? . . . . ? ? . . TI
D? Natural Gas Industry . . . . . . . ? . . . 9.
Be Pips Lines . . ? . . . . . . . . . . . . . :9.
F. 3erts . . . ? . . . . ? . . . . . . . . 10.
G. immediate Prospects of Oil Industry . . . . 10.
III. Atir11C
Apr action ? . . 11.
Be Exploration . . . . . 13.
C. Ref iainE . . . . . . . . . . . . . . . . . 13.
IV. ALBANIA.
A.~Muoti*n . . . . . . . . . . . . . . . . 14.
Be Soviet Exploitation of Albanian Oil . . . . 16.
V. AUSTRIA.
A.F;W-uation . . . . . . . . . . . . . . . . 17.
Be 2leration . . . . . . . . ? ? . . . . . . 19.
C? Experts ? ? ? ? .. 20.
D. Refining . . . . . . . . . . . . . . . . . 20.
VI. CZECHIX3LOPAKIA
lira .% . ... 21.
VII. 20LAND
VIII. GENERAL SUW`AR! AND CONCLUSIONS . . . . . 23
Declassified in Part - Sanitized Copy Approved for Release 2012/06/18: CIA-RDP83-00415R008800190001-3
 Declassified in Part - Sanitized Copy Approved for Release 2012/06/18: CIA-RDP83-00415R008800190001-3
THE OIL INLUSTRY nF THE SATELLITE STATES
CENTRAL EUROPE.
. INTROLUCTION.
The present study is concerning the actual conditions
prevailing in the petroleum industries of the so-called "peop-
le9e democracies", or Soviet satellite states of the Central
Europe. Austria was included into this analysis in view of
the fact, that her oil industry is operating now under the
Soviet control. The figures regarding the total crude pro-
duction of: Albania, Rumania, Hungary, Austria, Czechoslovakia
and Poland between 1939 and 1950 can be found in the following
table: -
PRODUCTION nF THE CENTRAL EUROPE.
Year.
Metric Tons
1939
7,563,n^O
1940
1941 -
7,546,900
1942 -
8, 3 04,''0
1943 -
8,243,8^
1944 -
6,571,4nO
1945 -
6,328,800
1946 -
6,2'X',800
1947 -
5,863,3nn
1948 -
5,846,200
1949 -
5,262,500
1950 -
7,071,300
With the end of the war, the Soviets began to create
in the countries of Central Europe a number of mixed companies
for the exploitation of the so-called formerly German-owned
properties. Thus, for instance, The Sovrom (Soviet-Rumanian)
ail Company has been incorporated in Rumania on 11th August
1945 for the purpose of controlling all former German oil oc'n-
cerns, but this company also obtained the monopoly on new oil
exploitation. Indeen, The Sovrom Company is now carrying out
new investigations for petroleum in various parts of Rumania,
and is organizing the exploitation of new oilbearing areas,
which had been discovered since 1945. Similar mixed corpora-
tions had been created in other countries of Central Europe,
such as Hungary, Austria, ate..
Declassified in Part - Sanitized Copy Approved for Release 2012/06/18: CIA-RDP83-00415R008800190001-3
 Declassified in Part - Sanitized Copy Approved for Release 2012/06/18: CIA-RDP83-00415R008800190001-3
But the subsequent development of the Soviet control
over the oil industries of the satellite countries varied from
one to another. If, in Rumania and Albania this control and
the influence of the Soviet petroleum technicians became almost
complete, as far as their oil industries were concerned, the
same cannot be said about either Hungary, Czechoslovakia or Po-
land, where more initiative was left to the national oil mana-
gement. Although, it is true, that the importance of Polish
and Ozechoslovak crude production cannot be compared with that
of Rumania, and is, therefore, of a minor interest for the So-
viets.
However, the unsatisfactory operation of the Hungarian
oil industry during the last two years (1949-195n) would, pro-
bably, lead to the strengthening of the Soviet control over its
exploitation, and, consequently, to the adoption of methods
which proved their efficiency in Rumania and Albania.
The petroleum industries of Poland and Czechoslovakia,
being of a smaller importance, had been left to be managed by
the local technicians. But according to some reports, the
Soviets have taken over from Clschoslovak authorities the exploi.
tation of the recently discovered Nalacky oil field situated in
Slovakia. Anyhow, both these countries, farf-Prom exporting any
crude, are obliged to import Rumanian and Albanian oil.
The situation prevailing in Austria is somewhat different
the Soviets, in whose occupation zone the Zistersdorf oil fields
are located, formed a special company for their exploitation on
the ground that these fields remained under the German control
between 1938 and 1944, and therefore must be considered as ex-
German property. Such a viewpoint does not permit, however,
to act in Austria in exactly the sane way, as the Soviets dr in
"people's democracies", hence a particular modus vivendi estab-
lished in their relationship with the Austrian government. In
spite of the difference of political situation, the Soviets se-
cure the exports to the U.S.S.R. of almost a half of the Austria:
crude production and make great efforts for a further intensifi-
cation of the Zistersdorf oil fields' exploitation.
AS Ad will be Been from the the follnwin; analysis, the
crude production situation in the most part of these countries,
with the exception of Hungary, after having known a definite
Declassified in Part - Sanitized Copy Approved for Release 2012/06/18: CIA-RDP83-00415R008800190001-3
 Declassified in Part - Sanitized Copy Approved for Release 2012/06/18: CIA-RDP83-00415R008800190001-3
decline as a result of the destructions caused by the war and
the chaotic conditions immediately foliowin the nationalisa-
tion of their petroleum industries, began to improve since 1949,
and this improvement became still more apparent in 1950 and
1951 with She gradual increase of their oil fields' yields.
Below can be found a brief analysis of conditions prevai-
ling in the petroleum industries of these countries. In addi-
tion to the crude production figures, some data regarding the
progreee:-;of exploration work in various countries have also
been comprized into the present study. Unfortunately, the
extreme scarcity of the reliable material did not permit of
accumulating more detailed statistics, such as, for instance,
regarding the refinery runs and petroleum products obtained.,
domestic consumpticu etc..
I I . BMW IA
A. Production.
First Rumanian oil wells began to yield crude production
in 1857, and since the beginning of the Rumanian oil fields
exploitation and up to 3lst L'ecember 1938 their cumulative cru-
de oil production reached a total of l;3,558,656 tons.
The crude production developed in Rumania between 1939
And 1950 as follows:-
ear
Metric Tons,
1939 -
6,521,000
1940 -
6,165,400
1941 -
5,786,5nn
1942 -
6,n11,4nn
1943 -
5, 5'97, n^n
1944 -
3, 741, 500
1945 -
4,928,800
1946 -
4,494,7nO
1947 -
4, 071,400
1948 -
3,875,000
1949 -
4,223, nrn
1950 -
4,794,000
In spite of an increase of total oil production by 13.5
per cent in 1950, in comparison with 1949, the plan target has
not been reached by the imanian petroleum industry last year.
The analysis of the above figures shows that the steady dec-
line. . . .
Declassified in Part - Sanitized Copy Approved for Release 2012/06/18: CIA-RDP83-00415R008800190001-3
 Declassified in Part - Sanitized Copy Approved for Release 2012/06/18: CIA-RDP83-00415R008800190001-3
of yields in the Rumanian oil fields continued since 1939, or
even since 1936, as the top figure has been reached in 1935 with
a total crude production of 8,394,C'fO tons.
The ensuing drop of oil production wLs due, on the one
hand to the gradual exhaustion of crude reserves in old ft=avian
fields, some of which are being exploited since 1857, and, on
the other hand, - to the failure of discovering any new oilbea-
ring areas in Rumania. During the second world war the Germane
did their utmost in order to obtain the largest amounts of oil
possible in Rumanian oil-producing areas by means of an intensi-
fied exploitation of these fields. With the end of the war
the decline of yields continued in the Rumanian oil fields. A
general desorganization of the exploitation work followed the
nationalization of the Rumanian oil industry, accompanied by a
new decrease of the crude production in the country.
The production situation began to impe since 1949, when
the total yields increased by about 9 per cent, as compared with
1948; this improvement continued during 1950 with a new in-
crease by 1) .5 per cent, in comparison with 1949. A further in-
crease by 16.7 per cent is expected for 1951, according to the
Rumanian Five-Year-Flan (1951-1955).
In the opinion of Rumanian petroleum technicians, " consi-
derable increase of oil production during the last two years
negated the theory of the so-called "inevitable decline" of the
Rumanian oil industry.
The fail,ire to achieve the production plan targets for 1950
was mainly due to absenteeism, frequent drilling accidents and
mechanical breakdowns. Rumanian authorities explain this un-
favourable situation by the lack of technical organization mea-
sures and of control by the Ministry of Ietroleum and Mines,
which could not eliminate numerous cases of sabotage. Accor4
ding to an official statement by the Central Committee of the
Rumanian Workers'Party, in spite of these obvious shortcomings,
the organs of the Ministry had limited themselves to note the
exculpatory reports sent in by entreprises, without taking any
measures to punish the culprits.
A considerable number of accidents had taken place be-
cause of the insufficient training of workers, who were not
instructed how to handle modern equipment. Most of the dril-
ling rod breakages were due to the lack of' records of the work
done by these rods and the inexistence of special teams to check
4
Declassified in Part - Sanitized Copy Approved for Release 2012/06/18: CIA-RDP83-00415R008800190001-3
 Declassified in Part - Sanitized Copy Approved for Release 2012/06/18: CIA-RDP83-00415R008800190001-3
the condition of tools. The inefficiency of the management
and of maintenance of equipment had led to many breakdowns and
destruction of machinery.
In order to deal with these shortcomings, the Rumanian
government instructed the 1'inistry of Dines and Petroleum to
take measures "against elements sabotaging the fulfilment of
the Five Year-clan and working disciFldne.'
Seven tubular bases will be created for the purpose of tes-
ting and repairing drilling equipment, namely those of: Suta-See
oa, Moinestf, Boldesti, Moreni, Targu-ncna, Liliesti and Targu-
Jiu, which should all be built by 15th June 1951. A base for
the assembly of drilling equipment will be organized at Teleagm
A number of scho b1a, which are tailed to train young wor-
kers of Rumanian oil. industry were created in various oil cen-
tres ( Moroni., aura-Ocnitai, Urlati, etc.). These schools will
educate qualified labour, which is now lacking in the Rumanian
oil fields. In addition to six months courses, two and three
years technical schools were created for 3,nf%A workers, and spe-
cial scholarships were granted to 85 per cent of these.
.The development of the Rumanian oil industry is being car-
ried out by means of imports of the Soviet petroleum equipment,
Installations and tools. In order toii sify the exploita-
tion of old almost exhausted oil fields, secondary production
methods, such as flooding, gas-lift and airlift, would be ap-
plied on a wide scale in Rumanian oil fields during the Five
Year Plan.
The productionp)lan quota was fulfilled by 99.5 per cent
in 1949, what was considered as being a satisfactory achivement
in view of the fact that the Rumanian oil industry found itself
in chaotic conditions during the period which has immediately
followed its nationalization in 1948. Although satisfactory
results had been obtained, the production plan quota for 195n
was only fulfilled to the extent of about 97.4 per cent.
B. Drilling and Exploration.
New drilling installations had been put into operation
in 1950; most part of this equipment was imported from the
U.S.S.R.. Hundreds of drilling installations would be added
to the operating units during the next five years (1951-1955)-
A considerable increase of the total meterage drilled is expec-
ted for the immediate future. Thus, for instance, 70fl,nnn me-
ters of exploitation drilling and 55n,nnO meters of test dril-
ling would be undertaken by the end of 1955 in various areas
5.:
Declassified in Part - Sanitized Copy Approved for Release 2012/06/18: CIA-RDP83-00415R008800190001-3
 Declassified in Part - Sanitized Copy Approved for Release 2012/06/18: CIA-RDP83-00415R008800190001-3
of Rumania. The practice of the so-called "advanced methods of
drilling" is being generalised in Rumanian oil fields, on the
basis of the Soviet experience.
Despite a certain improvement of the drilling situation in
195r), the plan target for drilling has been achieved only to the
extent of 93.9 per cent by Rumanian oil industry. In some areas
test drilling operations were much extended since 1948, and the
development of new oil-producing areas is expected for the near
future.
Exploration.
Soviet geologists and genphysieists were carrying out in-
vestigations for petroleum in various parts of Rumania during the
last three years. The existence of considerable crude oil re-
serves has been recently discovered in Moldavia, namely in the
valleys of the Trotue and Cazlau rivers. Test drilling is being
continued in this region, and, according to Rumanian sources,
the Moldavian areas may prove to be as prolific as the Ploesti
district. Exploitation wells are under drilling in Moldavia,
and the bringing into production of new oil fields would take
place during the new Five-Year-Plan ( 1951-1955).
Modern 4rilling equipment is being supplied by the Soviets,
in order to hasten the development of new oil producing areas,
and considerable number of Soviet petroleum technicians are ac-
tually being employed in this region.
New improved technological methods are being now applied
on a large scale in Rumanian oil fields, and, according to Ruma-
nian reports, with the introduction of new Soviet methods of
drilling the production could be doubled and even trebled at Ba-
au and Moroni, as well as in the Tintea oil field. About fif-
ty new successful completions had been made in various oil fielde
such as: Baivoi , Bacau, jarp
oviste. etc. during 195?.
Drastic measures are being taken by the Rumanian authori-
ties in order to strengthen the labour discipline and to reduce
the number of mechanical breakdowns and to eliminate the absen-
teeism in the petroleum industry.
The following official statement illustrates the difficul-
ties encountered by the Rumanian leaders in their efforts to de-
velop the nationalized petroleum industry: - " Although good
results had been obtained, the party and trade union organisation
have not yet succeeded in raising the standard of socialist com-
petitions to the level of the enthusiasm of the workers and tech-
nicians .... 6
Declassified in Part - Sanitized Copy Approved for Release 2012/06/18: CIA-RDP83-00415R008800190001-3
 Declassified in Part - Sanitized Copy Approved for Release 2012/06/18: CIA-RDP83-00415R008800190001-3
of this industry. In many sectors the socialist competitions,
instead of being organized in a practical way on concrete besee,
have been run on bureaucratic lines..... The nil industry trade
unions must use every means of agitation to mobilize the macsee
of workers for the socialist competition. The party organiza-
tion must work constantly to strengthen working discipline and
to keep alive the vigilance of the workers and technicians again-
st the attempts by hostile elements to sabotage and desorganise
the working class. . ."
The failure to fulfill the crude production plan for 1950
was due to the non-arrival in time of new drilling equipment,
such as derricks and drills, and also - to the fact that the ma-
chinery in some areas was being used inadequately. In the Munte-
nia oil fields, for instance,"a lack of control and initiative
among the management" was discovered. The field management had
failed to check the daily tasks and the production of teams, and
had "submerged itself in a sea of bureaucracy".
Apparently, despite a gradual improvement of the produc-
tion situation in the oil fields of The kiuntenia ril Company,
which now controls the interests of the most part of foreign
petroleum corporations nationalized in Rumania in 1948, and in
those of the Sovrom concern, the nationalized Rumanian oil in-
dustry is still very far from operating to entire satisfaction
of its new masters.
A directive was issued by the Rumanian government orde-
ring bonuses to be paid and more clothing ration cards issued
as incentives to workers in an effortsto alleviate the situa-
tion.
C. Refinip,-,,.
The Rumanian refining industry has a total daily intake
capacity of over 28n,n(n barrels. With the exception of a num-
ber of large modern refineries, such as: ",stra-Romana" at Flo-
osti (40, Onn bbl.); "Concordia", at Iloesti (31, r`^0 bbl.);
Petrol Bock, iloesti ( 15,nnn bbl.); Romana-Americana, at Te
leajen (30,,f)(10 bbl.); "Steana-homana" at Campina (34, rnf bbl.);
and "IInirea", Floesti; - there exist a considerable number of
small refining installations, the intake capacities of which
vary from 100 to 8,4!lr bbl. per day.
In addition a new refinery is now under construction at
Moldova; where the-.construction of a cracking plant is also
planned.
Declassified in Part - Sanitized Copy Approved for Release 2012/06/18: CIA-RDP83-00415R008800190001-3
 Declassified in Part - Sanitized Copy Approved for Release 2012/06/18: CIA-RDP83-00415ROO8800190001-3
_uranian Refini Installations.
Below is given the list of various Rumanian refineries of
a smaller importance.
Comte
Location.
Intake
Daily
__
C -- -fin
n a i
.
a
~ls.
"Aetra" Romano-Xenia 3.A.
Unmen Petrol" S.A.
Ploesti
Targoviste
arks
2250
,
"Colombia" S.F.R.LZPZ
Ploesti
0 0
6
"Coveta" S.A.
Floesti
3,Om
Creditul Minier S.A.
Baicoi
6, 6n n
Brazil-Prahova
8,400
Dambrovitza
1,8nn
DacioRomano P.S.Ltd.
Ploesti
4mno
Of "
Ploesti
3,5r, had a target
of 6601,N" tons of crude for its last year ending in August 1950.
The actual production did not reach this total, as it can be seen
from the above table. The yields increased in Hungarian oil
fields during the first quarter of 1950 only by a3 per dent, in
corcparsnn with the corresponding period of 1949; but the produc-
tion eitua;ion continued to decline during the second half of
19o!, when the increase was only of 234 per cent, as aF,:air.6st
19490
The nationalized oil industry met with a number of techni-
cal dif ficulti.es, which it could not cveranmi, esj ecia z ly a very
slow progress of drilling.
According to Zoltan Vas, President of the T ational P1&nnin
nff'i..ce, in his address to a productive conference of the Budapest
Workers Party organization nn. 5th January 1771: w It is well
known, that our crude oil production is not , rok;ressing at all,
and its decline can be observed to a certain extent. This is par-
tly because we have not yet Completely liquidated the drawbacks
and consequences of the sabotwge and have ne lected the building
up of cadres, and partly due to our laing behind in exploration
and drilling work. It would be sufficient to point on.t, that in
anira the aver., ge speed of drilling is 6(percent higher than
in Hu.gary. This means that with the sate: arount of equipment
they achieve much beTter results a
'In the whole, the: operation of the t~ ri n petroleum in-
dustry was msatisfactory, and the crude production target was
not reached in 195f)e As it ,ppeare from official statements, the
crude production even slightly decreased in 195?, in comparison
with 1949. Such an unfavourable situation was rrsinly due to a
very slow prnSress of exploitation drilling, and an. insufficient
development ;of exploration work wnd test drilling, 4,s well as to
the frequently reported so-called. "sabotage cases", and the lack
of trained technicians in Hungary.
Sor improvement i& the production, situet'!on. Is ex. ected. for
1951, foilnwin; a nuher of measures taken by the
thorities in order to remedy the unsati sf~=.etc-ry coniitions with vbs.
prevailed in the petroleum industry during
SECREI C?TROL U. S. OFFICIALS M"
Declassified in Part - Sanitized Copy Approved for Release 2012/06/18: CIA-RDP83-00415R008800190001-3
 Declassified in Part - Sanitized Copy Approved for Release 2012/06/18: CIA-RDP83-00415R008800190001-3
SECRE, CONTROL U. S. OFFICIALS ONI
1!oration,
izivesti,gations for oil were carried out. in various re-
,ions of uni ary for a namber, of ye .re, hut, so fr r, no it -
portRnt discoveries were made...
Some recent reports ( Leeenber 14jo- Jr,.nuary 1941),
however, spoke about interesting results obtained by the
exploration work at a distance of about 151", kilometers in the
Eastern direction of Budapest; namely ir the tiharnagybe tom
area, in the Eastern section of the Hungarian plain.
Apparently, several weals have been alrea.d.y brought
in, and Soviets officials would have visited they new oilbeas-
ring area, in order to speed up its bringing into production.
No crude production was known to exist in this r Yior here-
tofore. Germans have undertaken some test drilling
tion5 on both sides of the border between kumania an& hungary
Across the bc,rder, in R,wania, but in a separate basin., are
the gaebearing areas of Transylvania. whereas the main Ruma-
nian oil fields are situated on the other side of the Garpa-
thianas. No official confirmation of T> li s discovery was made.
an yet by the Hungar. i an authorities,
in order to intensify the development of the Ftungari+.n
petrololin industry, the Soviets haved T dto Hungary cer-
tain quantities of modern technical equipment, such as dril-
ling installations, etc.. Drilling of wells over 3, n^n me-
ary since 5.949.
ters deep was repor .ed from Hung
ural Indu.stIZ.
in addition to the crude production, Hungary possesses
important natural gas reserves, the exploitation of which is
being now developed.. No definite figures of natural gas
production are available for the last years, whereas this
production hass-reached. 91,271,"gin cubic meters in 11447.
C. aefxnin,E
Prior to the rationalization of the petroleum indus-
try, there existed in Hungary following refining inst l.la-
bons: -
C om2anY.
Ung art ache Mineraloel-
fal3riken A.G.
Locatio
I a i l intake
,rift,pnelty- in
Hazai Koolajiiar R.I. -
h irbagdanyer Petroleu3:n
~1
barrels.
Budapsst
f
Sdtorjs.la Ujhel j 280
Budapest 1, 1,7 0
Fabr3:. 'ir P
CONTROL' U. S.'KW
Declassified in Part - Sanitized Copy Approved for Release 2012/06/18: CIA-RDP83-00415R008800190001-3
 Declassified in Part - Sanitized Copy Approved for Release 2012/06/18: CIA-RDP83-00415R008800190001-3
CONTROL U. S. OFFICIALS ONLY
ECII
(cold m
cnmpna
Shell Mineraloel A?G
3zc arege3r i etarolewmfabrik L,t}
Magyar Fistrolenter..Zpar lesaveny..
Tarsasag
Vacuum 1 Company
Lo cat ry
Fucla1 3t
1)udaest
Alias Fuzito - 2,5nn
Da ntake
Capacity in
tL $ . 42 Galls
. -
barrels.
2,3nn
420
nteT dai .y Oapacity 9, 950 bb:
In addition tv the above capacitwy, a new oil refinery
of the "l tassola j ", the hungarian..Soviet company, was put into
operation at Szoenyi in September 19,5 '. This refinery is
supposed to be one of the most import?tnt achieve tents of the
Hungarian Five Year Plan ( 195n - 1954 ).
ary of the i'rc-ductirn Sjtuatjc:n. in ry,
lain, up, it should be emphasized. that the }Eungarian
petroleum industry was working unsatisfactorily during the
two years (1949.1950), and thus h. xploration work for petroleum is being organizea in 'Up-
per Austria. The search for oil in this region was started in
19.
SFfiP '' CONTROL (1_ S. OFFICIALS ONLY
Declassified in Part - Sanitized Copy Approved for Release 2012/06/18: CIA-RDP83-00415R008800190001-3
 Declassified in Part - Sanitized Copy Approved for Release 2012/06/18: CIA-RDP83-00415R008800190001-3
WiT CONTROL U. S. CT]IOALS Orr
1948 by the RohoeJ. aewinnu A.G, at the request of the Federal
Geological k ervice. About 6o test wells had been drilled in thi
region up to the end of 1950, particniar:ty at i;a6_ Hall,, between
the, Saizach and iatlig rivers, with rnsu"i- t s which have strengths
nod the belief in Austrial oil ciroles, that, important accumala-
tions of oil exist at great depth in th .s area.
Teat drilling operations ate also being undertaken in the
Graz basin, where the discovery of nil is also being expected.
o rt s,
Accordin to the American estimates, approximately one
half of the crude produced in the Zistersdorf fields in 1949
was exported. to the U.S.S.R.,, and Austria. was not paid for these
experts, valued at about 29, n0O, r,Cn, it was asserted. The
exports of ustrial oil to the Soviet Union continued dur,i g
1950 to more or less the same extent as in 1949.
Rem
The main Austrian refineries are situated in the vicinity
of Vienna, namely at Vosendorf (resterreichische ir`anto AIG.),
and at Florisdnrf (Shell-Florisdc,rf i inerploel Fabrik A.G.),
Their initial capacities of 1,120 and;, bbl. respectively,
had been consi derably increased by thtj Germans daring the war?
Austria being not >A, "people*s iemocr.?ecy", the Soviet con-
trol over the country's industry is more e a tic, than in the
case of their satellite states. I everthe? ss, the Soviets
are ,raking great efforts in order to obtain from Austria the
maximum amounts of oil they can secure by an intensified exploi
tation of the Ziatersdorf fields and other oil producing areas
The experience of the last five years shows, that they hay
this obtained a considerable increase of crude production, whit
almost reached the topmost level of the war year, (1943..1944).
A new, if moderate raise of yields in the Austrian. oil fields
should be expected for 1,51,
3mall crude production had taken ~: aee in Czechoslovakie
since 1'91", and a cumul::tivs total production of 543,642 tons
was obtained between 191 i and. 11th Decerher 1935.
As it can be seen from the table below the Czechoslovak
oil industry was working satisfactorily during the last two
years (1949?-195(1), after a temporary decline of crude produc-
tion between 194P7 and 1949.
SECRET tON1~OL U. S. OFFICIALS ONLY
Declassified in Part - Sanitized Copy Approved for Release 2012/06/18: CIA-RDP83-00415R008800190001-3
 Declassified in Part - Sanitized Copy Approved for Release 2012/06/18: CIA-RDP83-00415R008800190001-3
Since 1939 the crude production developed in Czechoslove-
kia as follows:
Laude nil Production.
SECRET CONTROL U. S. OFFICIALS ONLY
Year-, Metric Tans;
1939
194r
1941
1942
1943
1944
1945
1946
1947
1948
1949
1950
17,2
23, 3 {?
. Our iifEit estimates.
26, lnt
38,7')
28, 6(r
26,4nn
27, non
29, O
23,6
21, inn * f 390 n00 of .
The year 1950 was marked, however by a big fire, which
had broken out in the Hodonin oil field, as a result of a gas
explosion. There had been a subsidence of the soil and an oil
derrick had collapsed, but there had been no casualties. The
glow of this fire was seen from Vienna some 30 miles distant.
The explosion was said to be of only local importance, and work
work was continued elsewhere. A gas-well fire burned from 19th
to 27th August 1950.
J ; tion,
Early in 1950 Oaechoslovak geologists have discovered a
rich gee and oilbearing area at Majowky in Slovakia. Soviet
geologists and engineers were sent to to this ear. ee. at the request
of the Prague goverhraent. In the opinion of these experts, the
new oil field was a geological continuation of the Zietersdorf
oilbearing structure. According to Belgrade, the Ozoohoslovak
authorities and the Soviet Economic Commission in }rague reached
an agreement, whereby oil produced at Mealacky by the Soviet ef..
forts will be sold to Czechoslovakia at "reduced price",
The development of now oil producin,& area in Slovakia
would, naturally, contribute to a further increase of Czechoslo-
vak crude production. In order to provide qualified labour in
sufficient numbers a training centre fot oil drillers has been
opened in 1950 at Skalica.
SECRET CONTROL U. S. OFFICIALS GNTY
Declassified in Part - Sanitized Copy Approved for Release 2012/06/18: CIA-RDP83-00415R008800190001-3
 Declassified in Part - Sanitized Copy Approved for Release 2012/06/18: CIA-RDP83-00415R008800190001-3
SECRET CONTROL tI^~--~
VII. PrLAND,,
The exploitation of Polish oil fields was started. in
1874, and. their cumulative crude production since the beginning
of development and up to 31 December 1938 reached a total of
35,660,756 tons.
The progress of crude production in Poland between 1939
and 1950 is shown in the table below;-
Crude nil Production.
Y r Metric Tons.
1939 - 556,800
1940 - 535,000
1941 ,. 474. ,MO
1942 - 485,000
1943 - 50, 000
1944 - 428, non
On
1945 - 11000f)
1946 - 112,800
1947 - 1230")
1948 135, ONCE */ a
1949 ~- 147, 000 */ .
*/ ,
1950 160.10(10
------------------------------ ------_---__--------------------
O= best estimates.
The sharp decline of the Palish crude oil production in
1945 was due to the incorporation of the Eastern Galicia (Wes.
tern Ukraine) into the Soviet Union, The only remaining oil
producing; area of Poland is located in Western Galicia (Procne
etc. )j and its production is of minor importance.
The Three-Year-Plan ( 1947-1949) for oil drilling has
been fulfilled ahead of schedule on the 4th duly 1949, while
oil industry of the Kroeno region had completed its Three-.TeaP-
Plan for oil production on 29th September 1949, The plan tar-
get for 1950 was not reached, despite a new increase of produc-
tion, as as compared with 1949.
Under the long-term trade agreement agreement between Poland and
the U.S.S.R., the Soviets had delivered drilling equipment co-
vering almost all Polish demand. Additional equipment, machine-
ry and tools would be supplied to the Polish petroleatm industry
within the neat five years. Poland has thus received modern
drilling equipment for drilling to an average depth of 3,000 me-
ters, derricks, pumps, cranes, various engines,, etc.. The So-
viet derive ECR? ? C01 TR 2' r N11 V
Declassified in Part - Sanitized Copy Approved for Release 2012/06/18: CIA-RDP83-00415R008800190001-3
 Declassified in Part - Sanitized Copy Approved for Release 2012/06/18: CIA-RDP83-00415R008800190001-3
SECRET CONTROL U. S. Or' ICIALS o f f
also included equipment for oil and gas research units.
According to the Polish t ix-Year-ilan (195m-1955), the
crude production should Bch. X94, "Ilr tons in 1955, the last
year of the plan. New methods of drilling have been adopted
thanks to new drilling equipment supplied by the U.8,3.K.
A gas pipe-line connecting the oil basin with Warsaw is
now under construction and its completion is expected for the
end of 1952. The natural gas will be used in the first place
by Warsaw industrial entreprieee; later an it will be also used
as motor fuel.
Unless some new oilbearing areas are brought in, it in
unlikely that the Polish crude production could be much deve:low
peso, in the near future, as the small old fields of the Ero eno
area are exhausted to a Considerable extent, and Poland, so fa.r,
does not possess any important proven reserves,
With a total annual crude production of about 7, 1 s nnr
tons, the relative importance of the petroleum industries of
satellite states (Central Europe) can be respectively sumrari..
zed as follows: -
1. Rumania -
4, 8flfl, r"'?l tons -
67.61
2. Hungary
6no,'v n
rt
9.45
3, Albania
4 t1'), AA., C
R
5.63
4, Austria -
1,lnr, Ono
15.49 A
5, Czechoslovakia 40, 000
6. Poland 160, 000
0.5
5 ;{
Total :- 7,lOt',^00 tons
Q
2.28
the above mantioned satellite states, Rumania and
Albania are those, where the degree of the Soviet control over
the petroleum industry is the greatest, and whose exports toward
the U.S.S.R, are proportionally the most important. These are
also the countries, where the Soviets succeeded to re-organise
the oil industry, after a chaotic period of its nationalization,,
and thin to increase crude production during the last two years
Parallel# to an intensive exploitation of the old oil
fields the satellite countries, investigations for petroleum
SECRE'f CONibL U. S. F ` CIALS 0"'
Declassified in Part - Sanitized Copy Approved for Release 2012/06/18: CIA-RDP83-00415R008800190001-3
 Declassified in Part - Sanitized Copy Approved for Release 2012/06/18: CIA-RDP83-00415R008800190001-3
SECRET CONTROL U. S. OF r#CIALS U?
had been undertaken by the Soviets in a nurber of their satel-
lite rotates, and some now discoveries were recently made in
Rumania, Hungary and Czechoslova cia. Thus, for instance a-ew
0ilbeari. areas were discovered in the valleys of =rotuss and
Cszla rivor# I oldayia). and the in.dustriaa a lc i tat ion of
thgti~ areas is brin canir.ed.
The production situation had been unfavourable in Hurgary,
and. the crude production decreased in this country in 1950, it
compared with 1949. According to some unofficial reports a
new cailbearing area was discovered at Fsiharna+'baiom, in the
Eastern part of Hungarian plain,
In Czechoslovakia, where the crude production is only of
a minor importance, anew oil field was brought in at a a ky
(Slovakia) in 1949. -Exploration work for oil is also being
continued in Austria, but, so far, no definite results were ob..
tained.
There exist a common feature in the development of Petro.
leum industries in the satellite states, namely the Soviet ef?.
forte to intensify the exploitation of all the existing fields
in order to increase the volume of oil exports of these coun-
tri.is to the Soviet Union. Such it poliolty is being carried o'
out espe ta.ll7 in crania, the resin +crudc producer, where the
domestic con5U Ption of various petroleuuY! products is the ob-
ject of "severe restrictions since 1949, With the actual crude
produetio'n of about 4,80,o0 tone, the I onian annual domes-
tic eonsuuz ption can be estimated at some tuns of crud
produced, the remainder of which, or over 3,000,0(' tons, is
being exported to the U.S.S.R., Poland and other "people's de-
mo craciss" o
These exports can scarcely be increased in the immediate
future as, generally, the increase of pry d.uction was, so far,
being obtained in Rumania by means of an intensified explo ita.
_
tion of old. oil fields (Secondary production methods, etc.),
which are, naturally, being gradually exhausted; thus that,
a new development of crude production would depend upon the
bringing in of new oilbearin, areas (in Mo ldfivia, for instance")
As regards the immediate prospects of petroleum indus.
tries of Central Europe, a reasonable forecast of their crude
production for 1955 can be made as follr' w : Rumania -- ' O nnn* 00
Hungary - 750,000; Albania A 500,00n; Austria - l,,.nn,* An0a
Czechoslovakia - 60, nano: Poland - 250, 000. The figure for
Rumania is much inferior in comparison with that of their Five
Year-Plan 0tone of crude in 1955)l but s very unli-
kely that this plan target would be reached in Rumania by 1955
FRRFT MUTt?ri't if z'r rrIrIAi c r T v
Declassified in Part - Sanitized Copy Approved for Release 2012/06/18: CIA-RDP83-00415R008800190001-3
 Declassified in Part - Sanitized Copy Approved for Release 2012/06/18: CIA-RDP83-00415R008800190001-3
HET w ^r
TR L U. S.
CALS Orl
"LY
:6 E Y W f k r Y7 IG AI C 1I~, JA 'SE
ONLY
Declassified in Part - Sanitized Copy Approved for Release 2012/06/18: CIA-RDP83-00415R008800190001-3