AZFEN SUCCESSFULLY COMPETES AGAINST STRONG FOREIGN COMPANIES

Azfen JV was registered in January 1996 and formed by State Oil Company of the Azerbaijan Republic (60% of the statutory fund) and TEKFEN Tesisat ve Inшaat A.Ш. of Turkey (40% of the statutory fund). Despite the short time lapse, today when upturn in the national economy is observed, AZFEN JV plays an important role in the development of market relations and execution of large-scale projects in Azerbaijan. Since the date of establishment, AZFEN JV started implementation of significant projects successfully competing against strong foreign companies. Over the period of its activity, AZFEN JV participated in many tender procedures and won over 60 contracts. Competence of employees and compliance with HSE requirements during execution of works have always been the basis of timely and successful completion of projects. HSE has always been a priority for AZFEN JV which is working to international standards. In 1999, for a third time, AZFEN JV was awarded for 3 million man/hours without LTIs. And, finally, in 2004, Azfen-Tekfen Alliance was awarded by AIOC for their outstanding HSE achievement of 13 million man/hours without a day away from work case within Sangachal Terminal Expansion Project.

In alliance with TEKFEN, AZFEN JV was awarded the following contracts:

Mechanical, Electrical & Instrumentation works at Sangachal Terminal

Fabrication and Erection of Crude Oil Storage Tanks at Sangachal Terminal

Baku-Supsa Oil Export Pipeline Azerbaijan Section

Construction of Pumping & Pressure Reduction Stations for Baku-Supsa Oil Export Pipeline - Georgian Section

Instrumentation Works at Supsa Terminal

Construction of Water Injection Module for Chirag-1 Platform

Fabrication, Construction & Installation works for facilities within Early Crude Project (Technical Service Contract)

Currently, in alliance with TEKFEN, AZFEN JV is carrying oil out works for the Sangachal Terminal Expansion Project within FFD/ACG Phase 1 for collection and further export of oil. Having successfully completed Preliminary Civil Works of the awarded contract, AZFEN-TEKFEN started Phase 2 of the Sangachal Terminal Expansion Project for the implementation of Terminal Main Civil Works.

In addition, in alliance with TEKFEN, AZFEN JV was awarded Shah Deniz Gas Terminal Construction Project. This project includes installation, inspection and early operation works.

AZFEN JV, in consortium (ATA) with TEKFEN (Turkey) and AMEC (UK), was awarded C&WP Topsides Fabrication Project within FFD/ACG Phase 1. Works started on 18.09.2002. Completion of the project is scheduled for the 3-rd quarter 2005.

At present, 3500 employees are involved in projects performed by AZFEN JV. In addition, many local subcontractors were mobilised for these projects, which in its turn provided more jobs for the local labour.