FTSE 100 listed Amec is the latest British company to become part of the multi-billion pound project to bring gas directly from Azerbaijan to Europe for the first time.
A consortium led by the engineering giant has been awarded a $974m (£587.5m) contract by oil major BP, to help develop the Shah Deniz gas field in Azerbaijan. The Amec Tekfen Azfen consortium comprises Amec, a Turkish company and a smaller local player, with Amec’s share estimated to be around 12 per cent, or $117m.
The construction works are starting this month and are due for completion in 2018.
“This latest award reinforces our successful long-standing relationship with BP and with our partners Tekfen and Azfen,” said Richard Rippon-Swaine, oil & gas director for Amec’s growth regions. “We have developed a strong track record in Azerbaijan, applying our global skills locally to deliver projects and engineering services safely and effectively.”
Last month a consortium including BP and Statoil confirmed that they had signed a $28bn (£17.2bn) deal that will bring gas from Azerbaijan into Europe. The project aims to produce 120,000 barrels of condensate gas per day over the next 48 years, which will be delivered to Georgia, Turkey, Greece, Bulgaria and Italy.
“The project is due to complete in 2018 so, while this is a positive win for a high-profile project, it will not change in earnings forecasts in 2014 and 2015,” said Investec. Amec’s shares closed up 1.76 per cent in trading yesterday.