The Caspian is a growth region for many lifting equipment companies

taitai

Since Kazahkstan and Azerbaijan gained independence following the collapse of the Soviet Union in 1991 they have become major energy producers— providing steady work for the overhead crane and hoist sector.

Kazahkstan, a country the size of western Europe, and Azerbaijan have relied increasingly on the lucrative oil and gas reserves in the Caspian Sea, which lies between the two countries. Huge investment over the past 25 years or so has created hydrcocarbondependent economies. They boomed with the good times but of course were vulnerable to the oil price plummet in 2014. Their currencies nosedived overnight and their economies stuttered.

Although Kazakhstan and Azerbaijan’s economic stability has been weakened by the lower oil price, the Caspian remains an important area for lifting equipment companies. They are still busy and they see the potential to increase business in the region. Some of the biggest development projects globally are being undertaken in the region and Kazakhstan is home to one of the world’s largest-ever oil and gas development projects—the Kashagan field which covers a surface area of around 75x45km in the northern part of the Caspian Sea.

BP is the main oil company in the region, operating seven offshore assets. It has just completed construction of the topside and jacket for the Shah Deniz 2 gas platform which sailed away in May. The company hopes to extend the contract for development of Azerbaijan’s largest offshore oil fields—the Azeri- Chirag-Guneshli about 100km east of Baku—until 2050. This would involve construction of an additional platform— the Azeri Central East facility.

The oil giant is also in the early stages of surveying for a potential third phase of the Shah Deniz gas field. And last year Tengizchevroil LLP, an international consortium led by Chevron, announced plans to raise production at Kazakhstan’s large Tengiz oil field. EnerMech has been working in the region since 2010 when it secured a fiveyear crane operation and maintenance contract on the Caspian assets of a major international oil company. This was soon followed by a contract to supply crane technicians in Kazakhstan. “We have since successfully introduced all of our services into the region and expanded further geographically with our operations in Georgia,” says John Morrison, international mechanical handling services director. “We’ve made a large capital commitment on equipment and infrastructure so that the services we offer in Azerbaijan and Kazakhstan mirror the range of business lines we offer elsewhere.”

EnerMech has invested heavily in the region and it now accounts for around 10% of the company’s worldwide sales. “The region is hugely important to EnerMech,” says Morrison. “We started with the cranes contract but, in line with EnerMech’s established strategy when entering a new market, we set up a more extensive business infrastructure than was needed for just servicing this contract. This enabled us to introduce our other service lines very quickly and to grow a substantial business.”

The decision to increase its presence in the country comes after ATR secured business to supply lifting equipment and regulatory inspection and maintenance services to support projects for some of the world’s leading energy services companies. ATR, which merged with Centurion Group last year, is the largest rental fleet management company to the UK’s oil and gas industry. Now operating with the Group’s combined capabilities, it will be able to further support campaigns globally including those for operators, drilling companies, fabric maintenance contractors, engineering firms, and across shutdowns and marine projects. ATR divisional director Findlay Moir says the Kazakhstan base is strategically important as it allows ATR to support all of Centurion’s companies throughout the region. “We will be able to provide the full range of our services in the country. All equipment and staff are there and ready to go to work,” he says.

“The locally based workforce will operate closely with our Baku business supported from our Aberdeen headquarters. Initially we will employ 12 people in the country; however, we expect this to more than double over the coming year.”

Czech overhead crane and wire hoist manufacturer Giga delivered its first double girder bridge crane and hoists to Kazakhstan 12 years ago and since 2012 it has had regular orders.

The bulk of Giga’s business is with its more logistically straightforward European neighbours but it recognises the importance of the quickly developing Kazakhstan market.

“We have a representative office in Aktobe and partners in Russia, one of which ensures service for this region,” says Beloglazov, from the company’s commercial department. Mining is driving demand for Giga’s business in Kazakhstan but quarrying, engineering and crane manufacturing also provide orders.

Demand in the region slowed as a result of the oil price slump and the sanctions imposed against Russia, although the business was sustained by the buoyant Czech market.

The Caspian is a growth region for many lifting equipment companies