BP Invests in Local Company Development

3 January 2005

BP is pleased to announce that it has recently signed an agreement with the local company BMI-2 for construction of a new fabrication workshop and upgrade of its facilities. Under this agreement, BP will provide a $245.000 loan to BMI-2.

The loan covers technical assistance and investment in the local company and is aimed at supporting BMI-2 in its efforts to align its work practices and capabilities with international standards. Both BMI-2 and BP have a common interest in developing local capacity in the fabrication services area. 

The selection of BMI-2 for this investment project was conducted by BP through its engineering contractor AMEC. The selection process included visiting seven local companies and inspecting their facilities . Before making the final decision to invest into this company, BP together with AMEC carried out a rigorous market analysis and BMI-2 came out as the best candidate. 
The selection was also based on two additional factors: BMI-2 is a 100% privatised local company that has applicable facilities to provide BP and partners with medium-sized fabrication services and it has a potential that could easily be expanded with appropriate technical assistance and investment.

Azer Zeynalov, Director of BP and Partners Enterprise Centre in Baku, says: "We are pleased to be able to launch this project which is designed to be a pilot for a future supplier financing initiative that we are currently looking into. The success of this pilot will depend on BMI-2's ability to perform in accordance with both high technical and non-technical standards''.

For further information please contact:
Tamam Bayatly, BP Baku Press office, telephone:      994 (0) 12 599 4557