The oil and gas industries in the Caspian region are expected to get a boost, thanks to a deal signed by Nobel Oil and British Wood, a global leader in the delivery of engineering and technical services to energy markets, last Tuesday.
The two companies will establish a joint venture, combining the engineering and technical services capabilities of Wood with Nobel Oil’s knowledge and expertise in the Caspian. The newly-launched venture is expected to support engineering, procurement, and construction management contracts pertaining to energy efforts in Azerbaijan.
“Establishment of the joint venture between Wood and Nobel Oil is a remarkable event as it creates a strong platform for uniting their expertise and capabilities. By combining the strengths of both partners, the new joint venture will deliver high-quality solutions and services to customers in the region. Therefore, both companies, as well as the entire oil and gas industry of Azerbaijan will benefit from this partnership," Nasib Hasanov, the founder of Nobel Oil, commented the contract.
Officials in Nobel Oil believe that some of the world’s energy giants which have been active in the region since 1994 will also be able to make use of expertise and capabilities of the new joint venture.
Azerbaijan, a country located on the western edge of the Caspian Sea bordering Russia to north and Iran to the south, is rich in oil and natural gas. According to data compiled by the U.S. government, the country’s proved oil reserves are estimated to be seven billion barrels, or about 955 million metric tons, putting it at number 20 globally and ahead of India, Norway, Sudan, and the EU. The Azeri-Chirag-Guneshli (ACG) offshore oilfield, which is the largest undersea field of its kind in the Azerbaijani sector of the Caspian Sea, is responsible for around 80 percent of Azerbaijan’s total overall crude oil production.
“Wood is committed to expanding our presence in Azerbaijan, seeking new opportunities to provide our services and building partnerships to become a leader in the local supply chain, supporting the needs of our customers. Joining forces with Nobel Oil will not only grow our engineering capabilities in-country but also provide training and development opportunities for the Azerbaijani workforce,” Dave Stewart, CEO of Wood’s Asset Solutions business in Europe, Africa, Asia & Australia, commented the deal.
Nobel Oil Services is a diversified group of companies specialized in oil and gas industry. Companies operating within Nobel Oil Services provide drilling, construction and project management as well as equipment maintenance, procurement and enhanced oil recovery services, successfully expanding their activities in these fields.
Wood is a global leader in the delivery of project, engineering and technical services to energy and industrial markets. The company operates in more than 60 countries, employing around 60,000 people, with revenues of over $10 billion.
Wood has been involved in joint activities with Azerbaijan’s State Oil Company (SOCAR) and the Heydar Aliyev Oil Refinery Project. In 2016, Wood secured a $500 million five-year contract to deliver engineering services across eight BP-operated facilities offshore from Azerbaijan, creating 200 jobs.
Along with Azerbaijan, Wood has previously inked partnership agreements with a range of companies operating in Kazakhstan and Russia – both countries are sitting atop world’s some of the largest oil and gas deposits.