Cape enters JV in Azerbaijan
INDUSTRIAL services group Cape today revealed it has established a joint venture with the State Oil Company of Azerbaijan (SOCAR) which will explore the future development of the oil and gas sector in the central Asian republic.
Yorkshire-based Cape will own 49% of the JV, while SOCAR will own the rest.
The agreement was signed in Baku yesterday by SOCAR’s president Rovnag Abdullayev and Cape’s regional director for CIS, Mediterranean and North Africa, Guy Rackham.
Cape has been established in Azerbaijan for more than 10 years, both directly and through its acquisition of PCH in 2007.
Cape said the SOCAR-Cape JV would provide the the resources to meet the expected increased demand for Cape’s specialist non-mechanical services including access and insulation.
The company is confident there will be “significant opportunities” in the coming years arising from new projects, maintenance and shutdown activities relating to the continued development of the Azeri-Chirag-Guneshli oil project and Shah Deniz gas condensate development project.
Martin May, Cape’s chief executive, said: “We are delighted that SOCAR has chosen to enter into this joint venture with Cape. Azerbaijan is a key country for the growth of Cape’s CIS business owing to its large oil and gas deposits and the significant investment in the region.
“A partnership with the State oil company provides Cape with high level access to major projects that will require our services. This is an exciting opportunity.”
Cape announced last month that preliminary talks which may have led to an offer for the company had ceased.
