AZFEN JOINT VENTURE
AZFEN Joint Venture was registered in January 1996 and established by State Oil Company of the Azerbaijan Republic (60% of the statutory fund) and TEKFEN Construction & Installation Inc. of Turkey (40% of the statutory fund).
State Oil Company of Azerbaijan Republic (SOCAR) is involved in all aspects of the petroleum industry associated with exploring, developing and equipping oil and gas fields onshore in Azerbaijan and offshore in Azerbaijan's sector of the Caspian Sea. It is also involved in scientific research, refining and transportation of oil and gas.
Founded in 1957 as a modest engineering consulting company, TEKFEN Construction & Installation Inc. is one of Turkey's leading construction companies and also significant international player with its experienced staff and major construction projects in the Eastern Gulf area, the Caspian region, and the countries including the Russian Federation.
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 with strong foreign companies.
AZFEN JV has participated in many tender procedures and won over 65 contracts. Competence of employees and compliance with HSE requirements during execution of works has 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. On January 1999, for a third time, AZFEN JV was awarded for 3 million man/hours without LTIsfor pipeline construction.
In a number of projects being presently carried out AZFEN JV participates in Alliance with TEKFEN Construction & Installation Inc. of Turkey. AZFEN-TEKFEN Alliance was awarded by AIOC for their achievement of 13 million man/hours without LTI within Sangachal Terminal Expansion Project in 2004. This award reflects continuous efforts of the company in HSE issues, Improvement of HSE principles is an ongoing objective for the company and this achievement helps to improve the HSE standards. This figure was brought to 17 mln man/ hours by the end of 2004. And this is another impressive achievement obtained during construction. This shows mat safety principles are complied with from management level to work group level with equal selflessness regardless of work being executed. The principle of "0 resistance" to hazardous works is implemented. No safety issue is compromised.
Within Early Crude Oil 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 in Georgia
- 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 out works for the Sangachal Terminal Expansion Project within Full Field Development of ACG offshore field Phase 1 for storage and further export of oil. Having successfully completed Preliminary Civil Works of the awarded contract, AZFEN-TEKFEN started execution of Main Construction Works at Sangachal Terminal Expansion Project.
Phase 1 of this project was completed at the third quarter of 2004, currently Phase 2 is being executed. The end of 2004 completed 85% of the whole project, including Phase 1 & 2.
In general Scope of Work includes fabrication, construction and installation. Also, project scope of work includes construction of BTC Pump Station (PSA1). At present, pre-commissioning and commissioning phases are being implemented at PSA1. Focus is on installation of Integrated Control & Safety System, telecommunications and commissioning. PSA1 related works have been executed by 98%. Meanwhile, 70% of works related to commissioning certification has already been completed.
In 2002, AZFEN JV, in consortium (ATA) with TEKFEN (Turkey) and AMEC (UK), was awarded C&WP Topsides Fabrication Project within FFD/ACG Phase 1. Before that the companies established a Consortium dedicated especially for mentioned project. Works started on September 18, 2002. Completion of the project is scheduled for the 3rd quarter of 2005.
Mr. Ismail Mamedov, General Manager of AZVEN JV says: "CWP Topsides is very important project not only for Companies involved, but also for Azerbaijan Republic. This project is opportunity for AZFEN to obtain experience and practice in offshore construction. Offshore part of works is getting closer and this is a challenge for our partners and us. We are on the finish line and we will struggle in order to fulfill our obligations in due time." Besides, in 2004 AZFEN
JV together with TEKFEN/Turkey and AMEC/England (ATA Consortium) was awarded for PCWU Platform Topsides Fabrication Project to be installed in Guneshli Field within the Phase 3 of ACG Full Field Development Project. The Project was sanctioned on the 20th of September 2004 and will be completed for the 1st quarter of 2008.
One of the successful projects of 2004 is Onshore Shah Deniz Gas Terminal Construction Project. The Project is carried out by AZFEN JV together with TEKFEN Construction & Installation Inc. of Turkey. This Project comprises Construction, Installation, Testing, Pre-commissioning and Commissioning works. The gas produced in the Caspian Sea Shah Deniz gas field will be transported to this Terminal through underwater pipelines and then the Azeri gas will be exported to international markets through export pipeline.
Internationally experienced foreign companies have been involved in the projects being carried out by AZFEN BM. Almost all of the AZFEN JM employees are of Azeri nationality. Thanks to the AZFEN JV workforce, number of local employees and specialists is always high in the projects performed by the company. At present, 75% of general project personnel is local employees. More than 3500 local employees participated in the projects carried out by AZFEN JV in 2004. Furthermore, a number of local subcontractors were involved in the projects which, in its turn, means new work places for the local workforce.
Note: AZFEN JV was awarded a "Company of the Year 2004" Prize for Construction Works in the field of Fuel-Energy Complex instituted by influential "Consulting & Business" Magazine for the results of the projects carried out during the year.