Cape signs deal to tap Azerbaijan's resources

ENERGY services group Cape has set up a joint venture with Azerbaijan's state oil company to exploit further petrochemicals opportunities in the country.

The company, whose UK operations are based in Wakefield, said it has formed the partnership with the State Oil Company of Azerbaijan (Socar). The company is 49 per cent owned by Cape and 51 per cent by Socar.

Cape chief executive Martin May said: "We are delighted that Socar has chosen to enter into this joint venture with Cape.

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"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."

The agreement was signed in Azerbaijan's capital Baku yesterday by Socar president Rovnag Abdullayev and Cape's regional director for CIS, Mediterranean and North Africa, Guy Rackham.

Cape has been established in Azerbaijan for over ten years, both directly and through its acquisition of PCH in 2007.

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Cape said the joint venture will have the resources to meet the expected increased demand for Cape's specialist non-mechanical services including access and insulation.

It believes there will be significant opportunities in coming years from new projects, maintenance and shutdown activities relating to the development of the Azeri-Chirag-Guneshli oil project and Shah Deniz gas condensate development project.

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