Cape plc announces its SOCAR Cape joint venture has been awarded three significant contracts in Azerbaijan. The contracts are for the supply of services to projects that are part of the development of the Shah Deniz field, a major natural gas development in Azerbaijan. In aggregate the three contracts are expected to be worth in excess of $65m for the joint venture.
The joint venture agreement with the State Oil Company of Azerbaijan (SOCAR) was entered into in 2010 and is 51% owned by SOCAR and 49% owned by Cape. This contract will be accounted for in the share of post-tax results of joint ventures line in the UK, Europe and CIS region within the Group's accounts and for this reason, the value of this award will not appear in the Group's reported order book and revenue.
Joe Oatley, Chief Executive of Cape plc commented: "The SOCAR Cape JV has made significant investment to ensure the business is correctly structured to be able to react to the needs of its clients and we are delighted that the benefits of this investment are starting to be seen. These contract awards are testament to the continued hard work and capability of the SOCAR Cape JV team and come at an exciting time in the country where there is increasing demand for our services. SOCAR is an important partner to Cape and we look forward to continuing our partnership with them on both these and future projects."