Azerbaijan: AMEC Bags 5-year Master Services Agreement and $340million Project for BP


AMEC, the international engineering and project management company, as part of the AMEC Tekfen Azfen (ATA) consortium, announces the award of a five-year Master Services Agreement by BP Azerbaijan.

The five-year agreement for the ATA consortium covers the provision of project management, engineering services, construction management and commissioning and completions for BP’s oil and gas projects in Azerbaijan, including the Chirag Oil Project – West Chirag (COP-WC) project valued at $340m and, in the future, the Shah Deniz 2 project.

AMEC has worked for BP in Azerbaijan for 13 years and, as part of the ATA consortium, has successfully completed two major platform topsides as well as providing offshore asset support services in the Caspian.

The first tranche of work under the new agreement is for the project start-up and associated yard preparation works for an 18,000 tonne topsides facility for the Chirag project.

“This latest agreement reinforces our successful long-standing relationship with BP and is in addition to our major projects global agreement,” said Neil Bruce, Executive Director, AMEC plc. “We have developed a strong position in the Caspian and surrounding region, where we have a good understanding of local issues. I am proud of our commitment to the region and our ability to apply our global skills to meet local needs.”

Tony Cruddas, President of Growth Regions for AMEC added: “The award helps us with our strategy for growth in Azerbaijan and enhances our reputation there. Since setting up our operations centre in Baku in 1998, we have built a business that employs local people and delivered several successful major projects that have helped Azerbaijan’s national oil industry to grow.”

Chirag (Azerbaijani: Çıraq) is an offshore oil field in the Caspian Sea, located 120 km (75 mi) east of Baku, Azerbaijan and is a part of the larger Azeri-Chirag-Guneshli (ACG) project. The production, drilling and quarters (PDQ) platform Chirag 1 (EOP) has been in operation since 1997. Chirag 1 has been producing the Early Oil from the ACG field. West Chirag is planned as an extension of ACG project.

AMEC is a focused supplier of high-value consultancy, engineering and project management services to the world’s natural resources, nuclear, clean energy, water and environmental sectors. With annual revenues of over £2.5 billion, AMEC designs, delivers and maintains strategic and complex assets for its customers. The company employs some 22,000 people in around 40 countries worldwide.

· The Natural Resources division covers AMEC’s activities in oil and gas services, oil sands and mining. The division has global experience of delivering large and complex projects and service, with life of asset capabilities in deep water and hostile conditions including Arctic environments and earthquake-prone regions. It has a strong reputation for balancing global excellence with local delivery.

· In June 2008, AMEC entered into an agreement with BP International Limited to provide engineering and project management services for BP’s offshore developments around the world. AMEC was one of three companies selected by BP for this long-term agreement, which set out the principles of collaborative working for four years, with an option to extend. It enables BP’s project management teams to access AMEC’s international resources when and where required.

· In March 2008, AMEC extended its BP Engineering Modifications contract until 2013. Under the contract, which follows on from an existing eight-year contract, AMEC will provide engineering and construction management services to enhance and extend the life of all of BP’s offshore installations in the Azeri sector of the Caspian Sea. The facilities include the Chirag, Central Azeri, West Azeri, East Azeri and Shah Deniz and Deep Water Guneshli assets, which are of strategic importance to Azerbaijan.

Source: Amec,July 13, 2010;

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