JSC MQS - SERIOUS COMPETITOR IN THE SERVICE MARKET FOR CASPIAN OIL AND GAS INDUSTRY

JSC "Metal Qaynaq Sinaq" (MQS) was founded in 1998 in Azerbaijan and is located in the original facility used by the Central Laboratory for Welding and Testing of Metals (CLWTM) of "Kavkazenergomontaj" Trust.

MQS is a 100% Azeri owned company with 220 employees, 99.5% of whom are Azeri Nationals.

MQS specialises in oil and gas projects in the Caspian region. MQS is a flexible and customer focused company with a policy of continuous improvement in order to deliver products and services that meet or exceeds customer expectations.

MQS are proud that their Quality Management System has achieved ISO 9001 - 2000 accreditation. MQS has also achieved ABS accreditation as a service provider for destructive and non-destructive testing plus welder training and holds all Azeri State licences for radioactive isotope importation, storage and transportation.

The MQS services for welding related operations include destructive and non-destructive testing, material testing, heat treatment and welder training and certification. To provide the above services the Company owns an operations yard of 2800 sq. metres fully equipped with workshops, classrooms, warehouse, laboratory facilities, machine shop and X-ray room. MQS also carries an adequate stock of MPI and ultrasonic devices, radioactive isotopes, thickness testers and a 20 bay welder testing facility. Personnel welfare is also of prime importance and MQS has a fully staffed and equipped first aid centre and a canteen for 25 personnel per sitting.

From Q2 2003 MQS diversified into fabrication of pipe-work, structural steelwork and installation and commissioning. The addition of production, installation and commissioning service into the MQS portfolio provides clients with an increased range of services. In addition to the original range of services MQS can now offer pipe-work fabrication & testing in most materials (stainless steel, aluminium, carbon steel, super duplex and GRE), structural steel fabrication in all material grades, NDT services, load testing, blasting & painting, machining services and installation services both onshore & offshore using experienced personnel. To provide the above services the Company owns a fabrication facility of 4070 sq meters in Baku fully equipped with modern plant and refurbished to meet the standards required by BP. All consumables used in the welding and fabrication processes are sourced from Western European manufacturers.

MQS has also recently recognised the need for expansion and has consequently acquired an additional covered fabrication facility of 9600 sq metres in Baku. Phase 1 of this facility was to convert approximately 2000 sq metres into a blasting & painting facility managed by the MQS subcontractor Rigblast. This paint/blast facility is manned by professional staff including level 2 Nace inspectors and is capable of coating of all steel grades including exotic metals and is the first of its kind in Azerbaijan. This facility was put into production on the 3rd December 2003 and is attracting interest from a wide variety of customers. Phase 2 of this facility will be the construction of additional fabrication capacity for the production of pipe-work, steelwork, pressure vessels and general fabrication. Phase 2 completion is planned for the end of Q2 2004 and it is anticipated that when operational this will create between 150-200 new work opportunities for Azeri nationals.

MQS has formed strategic alliances with other companies such as Victaulic (weldless pipe fitting & valves) and Match Ten (on-site machining and specialised engineering solutions). Further alliances with companies who provide complimentary services to MQS are currently being negotiated.

The company not only possesses highly skilled personnel meeting international standards but carries regular, recorded, refresher training and conducts trades training for new personnel. All new MQS personnel are recruited and trained in the MQS in house training complex. HSE training is a core part of all training and a 5 star system is in operation.

Also MQS are fully certified by Ameron of Holland for GRE pipe fabrication and installation.

The Director of MQS Rasim Mammedov stated that the company's objective is to compete with western companies in the services market for oil and gas projects in the Caspian region, adopting international standards and operating in accordance with international safety and environmental standards.

Operations Manager Dave Maskall explained that prior to starting operations considerable effort was expended into developing and implementing both an internationally acceptable Safety Management System (SMS) and a Quality Management System (QMS) that would meet or exceed the requirements of all potential customers. The success of this can be measured that despite comprehensive HSE and quality audits conducted by all the BP major contractors involved in the Caspian region, no significant non-compliances were reported. This proves that the MQS commitment to HSE and quality complies with international requirements and sets the standard for other Azeri companies.

MQS accept that its prime responsibility is to the health and welfare of its employees. To promote this the MQS HSE procedures are based on the requirements of the UK Health and Safety at Work Act 1974 (HASAW) and The Health and Safety at Work Regulations 1999.