Caspian Energy (CE): Mr Garakhanov, how was machine-building developing in 2012? What objectives have you set for the coming year?
Ali Garakhanov, Chairman of the Board, Azneftkimyamash OJSC: The order of the President of the Republic of Azerbaijan Heydar Aliyev dated March 2001 served an impetus for the further development stage of heavy engineering represented by Azneftkimyamash OJSC. During his official visit paid to Japan in 1998 All-National Leader Heydar Aliyev reached an agreement with the land of the rising sun about rendering assistance to the Republic of Azerbaijan in development of oil machinery manufacturing.
As the result, the Japanese government allocated a grant for implementation of the program on development of 4 plants and two institutes until manufactured production meets international standards.
Thus, the American Petroleum Institute (API) provided 5 monograms for 32 standard sizes of oil equipment. All 6 enterprises received ISO 9001-2000 quality certificates at the same time.
As before, we again plan to carry out activities for further improvement of manufactured equipment quality, working conditions of workers as well as for increasing of their professional skills. All conditions for implementation of this program are provided: a training center, qualified specialists and necessary testing equipment
CE: Which enterprises operate within Azneftkimyamash? What could you tell about their turnover and market sales?
Ali Garakhanov: 18 structural units including 4 science-technical, design-engineering and technological institutes, 13 production enterprises and a “Training center” had entered Azneftkimyamash before 2010.
The government made a decision to move production enterprises, garages and other manufacturing structures beyond the city boundary in 2006.
Implementation of this program led to an amalgamation of machine building plants named after Sattarkhan, May 28th, Baku machine building plant (former S. Kirov) and Baku oil-field machine building (former plant named after P.Montin).
All these four enterprises are placed on the production area of the former Baku Machine Building plant (Zabrat 1 settlement) and named Baku Petroleum Machine Building Plant.
Nowadays it is modern facility with foundry, forging and mechanical workshops, providing normal conditions for engineering-technical personnel; occupying a landscaped territory. Operational conditions of all subdivisions of the plant have been improved.
Just like the former Keshla machine building plant entered the “Bakinski rabochiy” (Baku worker) machine building plant (settlement named after Bakikhanov), the Baku oil-gas equipment plant was moved to a production area of Surakhany machine building plant. The experimental research plant was merged with a Balakhany machine building plant where a modern boiler-welding unit was commissioned.
Thus, the following facilities are currently operating within Azneftkimyamash OJSC:
- Science-research design institute of Oil Machine Building (AzINMASH);
- Machine-building technology institute;
- Special Design Bureau “Neftemash”;
- Azerbaijan State Design Institute;
- Training center;
As well as the following plants:
- Baku petroleum engineering plant;
- Surakhany machine building plant;
- Saubnchu Science-Production Association;
- Machine building plant named after B.Sardarov;
- Baku worker machine building plant;
- Baku petroleum engineering plant;
- Zabrat machine building plant;
- Balakhany machine building plant;
- Sabayil machine building plant.
Despite the difficulties Azneftkimyamash faced during the dislocation of plants, its personnel managed to fulfill the task assigned by the government in a worthy manner.
In general, products worth 25.5 mln AZN ($32.5 mln) were manufactured by OJSC following the results of 2011. We expect this indicator to reach 27.0 mln AZN ($34.4 mln) in 2012. Growth rates of this industry totaled 106% throughout this period.
CE: Which investment projects are to be implemented in near future?
Ali Garakhanov: Azneftkimyamash OJSC’s enterprises require investments. However, it would be more preferable to receive investments from our government in order to maintain heavy engineering as the strategic industry of the state.
We have not been provided with such opportunity yet.
However, we try to receive a credit for enterprises in order to implement the worked out investment program aiming at equipping working places with efficient technology including testing devices.
CE: Are there plans to improve the competitiveness of the industry and integrate it with world markets?
Ali Garakhanov: Competitiveness of manufactured products can be provided only through its quality and price.
It is necessary to ensure a partial renovation of the technology park in order to get this goal achieved within a short period time. Efficient equipment also enables to reduce the prime cost of manufactured products.
In the meantime, design work is carried out for creating of new constructions of oil and gas equipment.
Thus, production of machines (with the capacity of 60, 80 and 100 tons) for drilling and repair of oil-gas wells has been launched. The work over creation of the machine with the capacity of 125 tons is on verge of completion. Noteworthy is the growth of quality of blowout equipment (preventers, subsea test trees, valves, etc), submersible pumps and pumping jacks.
Almost all enterprises and organizations consider expansion of assortment of manufactured products.
CE: Will Azerbaijan’s entry to WTO be beneficial for the machine building sphere? Will it be necessary to protect a national producer?
Ali Garakhanov: In our opinion, entry to WTO may be considered in 7-8 years. As it comes from your question, measures should be undertaken for protecting not only machine builders but also all national producers.
CE: Does SOCAR which works over growth of oil-gas production buy products of Azneftkimyamash?
Ali Garakhanov: In our enterprise SOCAR bought equipment worth 21.0 mln AZN (26.8 mln dollars) in 2011. For the current year we have two agreements worth 22.0 mln AZN (28.03 mln dollars).
Our capacities enable to increase the volume of orders for SOCAR by 3-4 times. We are ready to supply them products they need.
CE: Is it planned to create an innovative subdivision of the Company?
Ali Garakhanov: Every enterprise implements innovation programs independently, so there is no need for creating a special subdivision.
CE: What could you tell about plans of cooperation with foreign companies on acquisition of new technologies and their introducing in production?
Ali Garakhanov: Implementation of such programs depends tightly on investment opportunities. We hope that the government will find necessary means ensure development of heavy engineering of the Republic.
Meanwhile, we maintain relationship with leading oil and gas equipment producers including processing of information received through mass media.
