The team compete in Ýokary Liga, the top division in Turkmenistan football league system.

The football club was founded in 1949[5] by the Complex of Oil Refineries in Krasnovodsk (Turkmen SSR).

At the end of 2002 Şagadam FK was confirmed as champions of 2002 Ýokary Liga for the first time in its history.

[6] In the 2012 season, Şagadam took fifth place and had the league's best scorer with their player Aleksandr Boliyan.

[7] Note: Flags indicate national team as defined under FIFA eligibility rules; some limited exceptions apply.