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BP-operated Projects Extend Cooperation with Petrochem Group

Release date:
7 May 2007


BP as the operator of Azerbaijan’s major oil and gas development and transportation projects on behalf of its co-venturers recently extended an existing contract with the local company Petrochem Group. The extension covers provision of lubrication management services for the total limiting value of $3.6 million for the next two years.


The contract is in line with BP’s and its co-venturers’ efforts to maximize local content in their projects through increasing both the number of companies participating in their contracts, and the value of contracts awarded locally.


Under this contract Petrochem Group will be responsible for inventory management, demand planning and expert advice in support of the Azeri-Chirag-Gunashli (ACG), Shah Deniz, Baku-Tbilisi-Ceyhan (BTC) and South Caucasus Pipeline (SCP) facilities. The new scope of work includes the provision of support for stocking including the monitoring of minimum and maximum levels of stock, quality assurance and quality control checks, rationalization, and forecasting. The contract also covers tracking of freight movements, liaison with BP personnel on anticipated volumes, alternatives for any long lead time or obsolete lubes, development of lubrication strategies for various installations, management of lubricant oil database, filtration/clean up and ferrography predict.


Petrochem has had a sole distributorship for BP Lubricants in Azerbaijan since 1993. “Since its establishment Petrochem’s mission has been to supply our customers with high quality BP and Castrol lubricants and related services, which focus on the specific needs of each individual client. Our management systems and procedures have developed to ISO 9001:2000 requirements and high Health, Safety and Environment (HSE) standards through the efforts of our own staff. As a result Petrochem Group won BP International Marine Supreme HSE Contractor Award in 2005,” says Farhad Aliyev, General Manager of Petrochem Group.

“Petrochem has full responsibility for maintaining the current legislative and HSE requirements. In order to provide a round-the-clock service seven days a week, Petrochem has built a dedicated lubricants warehouse. In addition, Petrochem has commissioned a study to build a blending facility in conjunction with BP and Castrol Offshore, which will be audited and approved to BP Group standards. This will enable us to produce selected fast-moving products under the appropriate licence,” adds Farhad Aliyev.


Samir Tagiyev, Manager of the Enterprise Centre founded by BP and its co-venturers, says: “We are pleased to have this opportunity for an extended cooperation with Petrochem Group. It is a reliable local service company, which has demonstrated its ability to meet BP’s onshore and offshore lubricant oil requirements during the 5 years of the previous contract with a dedicated team of more than 40 people based in Baku.


“We are delighted that the Enterprise Centre has been instrumental in development of the company’s capabilities,” adds Samir Tagiyev.

Notes to Editors:
BP as the operator of Azerbaijan’s major oil and gas development and transportation projects on behalf of its co-venturers has set an ambitious new target to double the value of contracts placed with Azerbaijan-owned companies by 2010. To reach this target, BP and its co-venturers have opened the Enterprise Centre in Baku to support local companies and encourage their participation in BP-operated projects. It is believed that this along with other initiatives will create innovative and transparent practices of support to local businesses.


Further information:

Tamam Bayatly at BP’s Press Office in Baku, telephone: 994 (0) 12 599 4557