AMEC awarded $600 million oil and gas contract by BP in Azerbaijan
AMEC, the international engineering and project management company, has been awarded a major brownfield contract by BP Azerbaijan, covering both their onshore and offshore assets in the region for five years with two possible four-year extensions.
The US$600 million Engineering and Small Projects contract is for the provision of project management, engineering, construction management and commissioning for engineering modifications to BP’s existing oil and gas facilities in Azerbaijan. AMEC will carry out the work in Baku with local company Azfen.
The new contract combines BP’s two existing offshore and onshore EMS (engineering modifications services) contracts into one overall contract covering the Sangachal terminal and all BP-operated offshore facilities serving the Shah Deniz and Azeri Chirag Guneshli (ACG) oil and gas fields. Sangachal is one of the world’s largest oil and gas terminals, and Shah Deniz is one of the world’s largest gas condensate fields.
Previously, AMEC held only the offshore EMS contract, so the new combined award significantly increases the scope of the contract for the company.
“This major award further demonstrates the successful long-term relationship between AMEC and BP.” said Neil Bruce, Chief Operating Officer of AMEC. “I am delighted that our track record of delivering globally, safely, consistently and excellently on some of the world’s largest and most complex assets has been recognised.”
Tony Cruddas, President of Growth Regions for AMEC added: “The award demonstrates AMEC’s delivery of our Vision 2015 strategy for growth in the region. Since setting up our operations centre in Baku in 1996, we have built a long-term business employing local people, working with local partners, using AMEC’s global skills and delivering complex major projects for BP – all helping Azerbaijan’s national oil industry to grow.”
This award is in addition to the existing five-year Master Services Agreement awarded to the AMEC Tekfen Azfen (ATA) Consortium in July 2010, and the two call-offs under that agreement, namely the US$340 million COP-WC (Chirag Oil Project – West Chirag) project also awarded in July 2010 and the US$20 million PCWU (Process, Compression, Water Injection and Utilities) brownfield integration contract awarded in October 2010.