AMEC plc announced that it has been awarded Master Services Agreement by BP Azerbaijan. The award, as part of the AMEC Tekfen Azfen (ATA) consortium, is a five year agreement for the provision of project management, engineering services, construction management and commissioning and completions for BP's oil and gas projects in Azerbaijan. This includes the Chirag Oil Project - West Chirag (COP-WC) project valued at $340 million and, in the future, the Shah Deniz 2 project.

AMEC has worked for BP for 13 years in Azerbaijan 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.

AMEC plc is an international project management and services company. It supplies significant consultancy, engineering and project management services to the global energy, power and process industries. AMEC also designs, delivers and maintains strategic and complex assets for its customers. Further, it provides small scale consultancy for its regional clients. The company operates through four business divisions, namely, Natural Resources, Power and Process, Earth and Environmental and Investments and other activities. The company principally operates in the UK and North America. AMEC is headquartered in London, the UK.

The latest Azerbaijan Oil & Gas Report from our forecasts that the country will account for 1.67% of the Central and Eastern European (CEE) regional oil demand by 2014, while providing 9.80% of supply. CEE regional oil use of 4.77mn barrels per day (b/d) in 2001 rose to an estimated 5.14mn b/d in 2009. It should average 5.32mn b/d in 2010 and then rise to around 5.89mn b/d by 2014. Regional oil production was 8.83mn b/d in 2001, and in 2009 averaged an estimated 13.31mn b/d. It is set to rise to 14.54mn b/d by 2014. Oil exports are growing steadily, because demand growth is lagging the pace of supply expansion. In 2001, the region was exporting an average of 4.05mn b/d. This had risen to an estimated 8.17mn b/d in 2009 and is forecast to reach 8.66mn b/d by 2014. Azerbaijan and Kazakhstan have the greatest production growth potential, although Russia will remain the key exporter.

Author: Paul Chapman, Analyst