We are a major supplier of products and technology services and systems to the oil and gas industry, including products and services for the drilling, formation, evaluation, completion, and production of oil and natural gas wells. We have been in Azerbaijan for many years now. We came along with a major international oil and gas company when it entered into the Azerbaijani market. In recent years, we have expanded our business to work much more with local companies. It has been very positive and we aim to extend our ties with local companies, establishing technology sharing, common training, and common working relationships, not just on a supplier basis. We see this as a significant opportunity for the important players in Azerbaijan. As one of the world’s oilfield service leaders, we work with our partners to lower costs, reduce health, safety, and economic risks, improve productivity, and increase ultimate recovery rates in the oil and gas industry. In terms of our activities in Azerbaijan, we are currently working on several projects in the country, and are developing a plan for the years ahead. We are planning cementing and completion work on the very high-profile wells that are being developed on a very challenging project that will help establish the right relationships.
Ekol Engineering Services was established in 2006 according to an agreement signed with the State Oil Company of Azerbaijan Republic (SOCAR), which owns 51% of the company, and foreign investor Lancer Services, which owns 49%. The main purpose of the company is to carry out environmental protection services by applying modern technology to the treatment of industrial and human waste, ground water, and oil sludge, and generally overcoming the impact of man-made pollution on the environment through ecological monitoring activities, preparing ecological technical documentation, and other ecological services. Over this period of time we have worked closely with the state authorities of Azerbaijan in order to provide the best environmental and engineering solutions both in oil and gas industrial fields and the country as a whole, successfully improving the ecological position of Azerbaijan. Ekol has contributed to improving and developing ecological, safe, and quality systems, minimizing all factors that might affect human safety, health, and the environment, and minimizing accidents and the use of energy and water according to international standards such as the ISO 18001, ISO 14011, and ISO 9001 certificates, which our company proudly holds.
In 2008 we acquired a company called CSM, and when we initially acquired that company it had a contract with BP. That contract was renewed with ASCO for a period of 10 years in July 2009. Over the years, we saw a robust volume of activity until 2010, and then a certain slowdown of activities during 2011. However, we have seen positive indications that 2012 will bring important growth to the sector. We expect activities in 2012 to return to the levels of 2010. ASCO has BP as a sole client in Azerbaijan, and we control all of its in-country logistics and manage the infrastructure that BP has built over the last few years. ASCO has not identified any areas where it sees itself expanding outside the oil and gas sector. In fact, if you look at ASCO’s global operations, 95% of them are related to logistics and the oil and gas industry. ASCO is providing integrated logistics solutions to BP in Azerbaijan; we control its pipe yards, warehousing, diesel tanks, transportation in the country, and all the associated quayside operations. If you look at our operations around the globe, it is the same kind of approach; everything is related to these fields. In some cases we perform the execution of the work ourselves, and in other cases we outsource the work via our sub-contractors. I do not believe we have a competitor in the country that can handle all aspects of the logistics that we do.
AZER N. ISAYEV
Our company, a legal successor of EUPEC Pipecoatings Azerbaijan LLC, was founded in Azerbaijan in 2002. We are a unique enterprise specializing in pipe insulation and coating in the Caspian region. Early in our operations, we were awarded the contract for Phase I of the Azeri-Chirag-Guneshli (ACG) project. Shortly thereafter, CPC was awarded a contract for the anti-corrosion and concrete coating of pipes under the request of BP/AIOC for the Shah Deniz gas field, followed by Phases II and III of the ACG project. Since its establishment, CPC has been involved in a number of regional projects under the orders of SOCAR, BP, and EUPEC, and we have produced coatings for pipelines of various diameters with a combined length of 2,300 kilometers. Today, CPC is the regional leader in the application of internal and external anti-corrosion coatings, internal pipe blasting, concrete weight coating, anode installation, handling operations, and logistics. CPC has successfully participated in 15 projects important to the region. We have provided anti-corrosion and concrete weight coating services for pipes of various diameters in the ACG and Shah Deniz fields, as well as supported a variety of projects within the framework of our production sharing agreement. At present CPC is performing anti-corrosion and concrete coating for pipes for the Chirag Oil Project at the request of BP/AIOC.
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