Developing the Local Supply Chain for the Contract of the Century and Achieving US$ 1 billion in Local Content

Ismayilov, Ibrahim (BP Azerbaijan-Georgia-Turkey Region) | Taghiyev, Samir (BP Azerbaijan-Georgia-Turkey Region) | Shikhlinsky, Kenan (BP Azerbaijan-Georgia-Turkey Region)

OnePetro 

Abstract Today, offshore Caspian has become one of the world's leading hydrocarbon provinces. The development of the region's offshore oil and gas fields and onshore pipelines has made Azerbaijan a focal point of the global energy market and a gateway through which international investments reach the Caspian region and beyond.1 Azerbaijan has a long oil and gas history, which was reinvigorated in 1994 when a consortium of major oil companies signed a Production Sharing Agreement (PSA) with the Government of Azerbaijan to explore and develop offshore Azerbaijan, which has been referred to as the "Contract of the Century". This has also triggered construction of the 1768 km long Baku-Tbilisi-Ceyhan (BTC) pipeline and other major projects now operated by BP. During the late 1980s and early 1990s, Azerbaijan endured the collapse of the Soviet Union, economic disintegration, and a devastating war with neighboring Armenia. 1995 Gross Domestic Product (GDP) was 42 percent of pre-independence levels and unemployment was endemic. Of a total population of 8 million, about 1 million Azerbaijanis were refugees or internally displaced persons who had fled areas occupied by Armenian forces. Another 2 million Azerbaijanis had left the country, mainly to find work.2 The Contract of the Century also provided the opportunity for the Azerbaijani private sector to rebuild itself by working with BP and associated service companies. However, to be successful Azerbaijani companies would have to compete with international firms for contracts, which demanded international quality levels. For most local companies this seemed an insurmountable obstacle.

Duplicate Docs Excel Report

Title
None found

Similar Docs  Excel Report  more

TitleSimilaritySource
None found