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October 2018
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Monday, 16 October 2017 17:30

Farid Agayev: Weir Oil & Gas is involved in all the main oil-gas projects of Azerbaijan Featured

Farid Agayev: Weir Oil & Gas is involved in all the main oil-gas projects of Azerbaijan

Caspian Energy (CE): Mr. Agayev, since when has such a well-known brand as Weir Oil & Gas been presented in Azerbaijan? Has the company managed to cover the considerable part of the market so far?

Farid Agayev, Branch Manager of Weir Oil & Gas Azerbaijan and Kazakhstan: It is true that our company consolidated a position of the leading brand in the field of oil-gas equipment supply. We have been represented in Azerbaijan long enough – since 2008. For 9 years the official representative office of Weir Oil & Gas has been successfully operating in the country. We are engaged in production and supply of equipment, spare parts for oil-gas industry enterprises, as well as in maintenance service. At present we own 80% of the market. The secret is simple: from the very beginning we confidently gained a reputation of a reliable partner. It also concerns the quality of our products which enjoy the trust of not only the oil-gas industry giants (our permanent clients) but also the producers of the oil-gas processing equipment.

CE: It is clear that such a rapidly developing market as Azerbaijan could not stay outside the circle of interest of The Weir Group. Nevertheless, why was it Azerbaijan?

Farid Agayev: Main oil and gas companies came to Azerbaijan they needed a reliable partner providing pipe threading services and the entire range of pumps maintenance. Weir Group is one of the leading world companies which has been engaged in production and service maintenance of oil-gas industry pumps for 150 years. Therefore, their choice was evident. This is the way the representative office of Weir Oil & Gas opened in Azerbaijan. The Company invested a very big sum into the representative office. The most advanced machines and equipment was brought into the country so that to make it possible foreign oil and gas companies, including national ones, enjoy the equipment and service provided by a giant as Weir Oil & Gas.

CE: Could you call the volume of investments made for creation of production capacities in Azerbaijan?

Farid Agayev: This is a commercial secret. Indeed, the volume of investments was pretty high.  It will suffice to mention that in 2015 Weir Oil & Gas invested a big sum into the opening of an own plant in Azerbaijan. Many machines were replaced with new ones. It means meeting the need of the time.

CE:  Weir Oil & Gas is actively applying innovations in production. We would like to hear more information about it.

Farid Agayev: Weir Oil & Gas is the first producer of the wellhead equipment in Azerbaijan.

We have a single Machine Shop which has licenses for the entire product range. Our plant has machines capable of producing any equipment that a client wishes. The equipment can also be produced on basis of the sketches of the customer.  Raw materials required for production of equipment are supplied from abroad, especially from Great Britain. Besides, our clients have a right to choose a raw material that will be used in production of the equipment they need.

CE: What other companies, in addition to main oil operator, does the representative office of Weir Oil & Gas cooperate in Azerbaijan?

Farid Agayev: It is certainly we have long term contract with the all subcontractors of oil operators. In general, we have 78 clients. Customers have our around-the-clock service. That is to say, the work does not end only with the supply and installation of the equipment. We stay in permanent contact with our clients and try to address their issues promptly.   

CE: What are the main projects which the company is engaged in?

Farid Agayev: We have signed a five year contract with the company for pipe threading and sub provision. The second 5-year contract has also been signed to support the company in the engine and pump business. At present, 6 engineers of Weir are carrying out a full pump inspection at Caspian Sea platforms and performing their repair in case of necessity.

As is seen, Weir Oil & Gas is represented in all the main oil-gas projects in Azerbaijan, including Azeri-Chirag-Guneshli (ACG) and Shah Deniz projects.

At the same time, we have big projects with national oil and gas companies. We also provide them services on maintenance of pump and engine equipment.

CE: The situation with the world oil prices has recently improved slightly. Has it increased the volume of orders?

Farid Agayev: Despite the fluctuation of the world oil prices, oil-gas producing companies are doing the work for the long run. The numerous surveys show that the demand for energy resources will only grow. It is worldwide trend. And any company aiming at a long term profit understands the necessity of using the qualitative, tried and tested equipment. Weir Oil & Gas offers such equipment.

I should note that crisis manifestations observed not only in Azerbaijan but in the whole world are temporary. People in our company perfectly understand the market situation.  Weir Oil & Gas has enough power and potential to support other companies and understand their needs. Taking the market price of our equipment, it is necessary to note their affordability for clients. Besides, we are ready to offer concessions, understanding the problems of clients.

CE: How do you handle the competition?

Farid Agayev: Weir Oil & Gas has been represented in Azerbaijan for a long period. Apart from products, we are also famous for the quality of service, high-skilled specialists. It is safe to say that Weir Oil & Gas has the strongest specialists working for it. Our main motto is quality.
We also follow the principle of understanding a client, as well as supporting each client regardless of its position in the market. We are trying to offer innovations to customers so that to make not only them but the whole country benefiting from the use of their business. Considering the way as certain companies operate, we may see that their business is based on supply of products from abroad. But it is an entirely different thing when you have Weir Oil & Gas, possessing an own Machine shop and producing products directly in the country. In this way, we avoid expenditures on transportation, customs clearance, etc.  Therefore, the equipment offered by Weir Oil & Gas costs cheaper.

Apart from this, we are actively working over reduction of the expenditures. Each position is analyzed thoroughly. It is done to lower the cost of products and service provided to customers.

Weir Oil & Gas is also trying to forecast the situation in the companies-customers because the success of our business, business of our clients and the situation in the market depend directly on it.

I would like to note that Weir Oil & Gas is currently investing into the purchase of other companies. The deal on acquisition of one of the large wellhead equipment producers was completed 9 months ago. It is far from the last acquisition. The company intends to continue developing and expanding in order to strengthen its positions.

Nowadays Weir Oil & Gas is a dynamically developing company with a huge working experience. Our specialists rely on the advanced technologies and the experience of their foreign co-workers. The motto of our company is “Quality, Support & Safety”.  Our equipment is the most qualitative indeed.  No remarks were made over the years of operation.

The market competition certainly exists but it is a positive factor promoting further improvement and growth of the company. 

CE: In which countries of the region, in addition to Azerbaijan and Kazakhstan, is Weir Oil & Gas represented? Are there plans on entry into new markets?   

Farid Agayev: We do have such plans. We are planning to tap the markets of other CIS counties and working actively for it. 

CE: Do you export products?

Farid Agayev: We do exportproducts but its volumes are not great. I should note that Weir Oil & Gas targets mainly the local market. We are trying to meet the entire existing demand for the relevant products.  

99% of employees in our company are the Azeri citizens. We are trying to localize the company. Besides, we train future specialists. We convey them all the valuable experience of Weir Oil & Gas so that they can promote the development of the oil-gas industry of Azerbaijan in future.

Moreover, our company participates in all tenders, new projects which our country is involved in.

Thank you for the interview


Caspian Energy

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