Reliability and product quality bring Nexans a cable contract for Baku shipyard project
From left to right : President of Azerbaijan Ilham Aliyev, President of SOCAR, Rovnag Abdullayev , Chairman of Keppel Corporation, Dr Lee Boon Yang , Singapore’s Minister for Foreign Affairs, George Yeo and Azerbaijan’s Minister of Economic Development, Shahin Mustafayev
Baku Shipyard LLC is JV between Keppel Offshore & Marine Limited (Keppel O&M), State Oil Company of Azerbaijan Republic (SOCAR) and Azerbaijan Investment Company (AIC) to develop and manage a new 52-ha shipbuilding and ship repair facility in Baku, Azerbaijan.
The new SOCAR-Keppel Shipyard will be developed over a period of two to three years with an investment of US$386 million. The joint venture agreement was signed with Keppel O&M taking a 10% share of the yard, and SOCAR and AIC the other 65% and 25% respectively. Keppel O&M will be responsible for the management and operation of the yard, and will have the option to acquire another 10% stake in the next three years. The new yard is designed to undertake construction of a variety of vessels ranging from offshore support vessels to tankers, as well as ship repair and conversion.
Strategically located along the East-West energy corridor of the Caspian Sea region, the new yard will be critical in helping to meet the growing needs of the local oil industry. It will contribute towards the unlocking of Azerbaijan’s vast offshore hydrocarbon potential as part of the republic’s oil strategy, and support the renewal of SOCAR’s vessel fleet.
Spanning a 1,630-metre waterfront, the yard, when completed, will be able to undertake 80 to 100 repairs and conversions per annum and is estimated to achieve an average annual steel throughput of 25,000 tons when operating at full capacity.
Nexans had won the tender in hard competition for manufacturing Medium voltage cable N2XSEYR 6/20 kV 20 km for this project for the total amount of 514 kUSD. The cable will be manufactures by Nexans Turkey plant Denizli and expected to complete the deliveries by the end of 2013.
About Keppel O&M
Keppel O&M, a wholly owned subsidiary of Keppel Corporation Limited, is a leader in offshore rig design, construction and repair, ship repair and conversion and specialized shipbuilding. Keppel Offshore & Marine’s near market, near customer strategy is bolstered by a global network of 20 yards and offices in the Asia Pacific, Gulf of Mexico, Brazil, the Caspian Sea, Middle East and the North Sea regions. Integrating the experience and expertise of its yards worldwide, the group aims to be the provider of choice and partner for solutions for the offshore and marine industry. Keppel O&M operates the Caspian Shipyard Company (CSC) in Azerbaijan, the first international rig construction, repair and conversion yard in the Caspian Sea region servicing the offshore oil and gas industry. The yard has completed many world class projects including jack-up rigs, semisubmersibles, pipe lay vessels, barges, and pipe rack structures.
SOCAR is involved with the exploration of oil & gas and gas condensate in both onshore and offshore areas of the country. This includes production, processing and transportation to local and foreign markets. It also implements large-scale scientific research and engineering activities. SOCAR has the capacity to meet Azerbaijan’s domestic needs for oil and oil commodities, as well as export demand. It has the relevant production capacity, well-developed service sectors, substantial scientific and technical expertise. There are 21 structural units operating under SOCAR. 36 joint ventures and 4 alliances were established with its participation in the oil and gas industry, covering all areas. SOCAR today represents the state of Azerbaijan, in onshore and offshore projects, in 14 countries around the world, working with 24 companies on 14 PSAs (Production Sharing Agreements). Growing its global reputation, SOCAR has established enterprises overseas with representative offices, through which it participates in large-scale projects and gains access to international markets. Currently, SOCAR has representative offices in Kazakhstan, Turkey, Georgia, Romania, Switzerland, Austria, Ukraine, Iran, Germany, UK and others.