GROWTH PLATFORM

Azerbaijan 2016 | ENERGY | INTERVIEW

TBY talks to Hamid Hasanov, General Manager of AZFEN J.V., on the firm's major projects, growth plans abroad, and the 20th anniversary of the company.

Hamid Hasanov
BIOGRAPHY
Hamid Hasanov graduated from the Azerbaijan Architecture and Construction University in 1981 as a hydraulic engineer. After graduation, he started working at Azdenizneftinshaat as a Master, Shift Mechanic, and Site Manager. He has worked at AZFENJ.V. as a Site Manager, Construction Manager, and Project Manager and has been the General Manager since 2006. He received the honorary title of “Distinguished Engineer” for his services in the development of the Azerbaijan oil industry by Order of President Ilham Aliyev.

What were some of the reasons behind creating AZFEN J.V. as a joint venture between SOCAR and Tekfen Construction?

In 1994, Tekfen and SOCAR signed a Protocol of Intent for a local construction company that would work on projects in the oil and gas sector. The agreement was made official in 1995, and AZFENJ.V. was officially registered and began operations in 1996. AZFENJ.V. was created to be a local company that was capable of procuring, engineering, manufacturing, constructing, and installing all aspects of oil and gas projects. AZFEN J.V. would provide the necessary resources and local competencies needed to take on these tasks.

What are some of the major projects currently in progress for AZFEN J.V.?

AZFEN J.V. won a contract in 2014 as part of an Alliance with Saipem to construct an expansion to the South Caucasus Pipeline. This project is expected to be completed in 2017. The length of the pipeline is 487km, with 424km in Azerbaijan and 63km running through Georgia. On this project, AZFEN J.V. works as an equal partner with Saipem as part of a consortium. We carry out all aspects of the job together as one team. AZFEN J.V. won another contract for the Shah Deniz II project. We are part of a consortium that includes AZFEN J.V., AMEC, and Tekfen (ATA). This is part of a huge project that we started in 2002 at our major construction yard in Bayil, which is close to the Caspian Sea. We have already constructed three oil and gas production platforms, the CWP, PCWU, and the COP platforms. As part of ATA, we are working on two platforms with a total weight of 30,000 tons at the same time, which is challenging. One platform is for production and the other is for living quarters. We will also build a bridge that connects the two platforms. In the construction of the previous platforms, all engineering work was done outside of the country. For these projects, all engineering work has been carried out by AZFEN J.V. engineers at the work site. Besides the South Caucasus Pipeline and platforms construction projects, we have a third project that we are doing in partnership with Tekfen, a gas terminal construction project within the Shah Deniz II contract. We are primarily using Azerbaijani workers, technicians, and engineers. The beginning of this project was the Early Infrastructure Works Project, and AZFENJ.V. was named the single source contractor on that. We successfully completed this project, adhering to the high standards expected by the company.

What are your plans for fostering growth outside of Azerbaijan?

We have been working on projects abroad since 1997, mostly in Georgia. Some of these projects include the Supsa Terminal, Baku-Supsa Pipeline, and pump stations. Today, we are involved in the SCPX project with Saipem, and want to use this experience as a platform to expand to other countries. Tekfen is interested in working with AZFEN J.V. outside of Azerbaijan as well. SOCAR is also supporting these initiatives. These are all future plans, because right now we are still very busy with many projects in Azerbaijan. Twice a year, we have formal meetings with our shareholders, Tekfen and SOCAR, and in those meetings we have started to form our strategy for expansion outside of Azerbaijan.

What are your goals and expectations for 2016, which marks the 20th anniversary of AZFEN J.V.?

We anticipate that 2016 will be a special year for AZFEN J.V., marking its 20th anniversary, which is certainly a cause for celebration. We will recognize this accomplishment and celebrate the contributions and efforts that everyone has made to create the success of AZFEN J.V. over the last two decades. It will be unforgettable.