**Thefollowing opportunities are provided solely as an informational service and donot represent an endorsement by the U.S. Department of Commerce.  Verification of leads is theresponsibility of the reader**.  

 

**AZERBAIJAN:REVENUE SHARING AGREEMENT - RSA - OPPORTUNITIES AND THE CHARTER OF THECOORDINATING COUNCIL OF SOCAR **

 

 

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This issuefocuses on investment opportunities under the Revenue Sharing Agreement (RSA)of the Coordinating Council of SOCAR (State Oil Company of the AzerbaijanRepublic).

Pleasecontact the Coordinating Council of SOCAR regarding these business proposals.Further information about SOCAR can be found at the end of this document. 

 

               CoordinatingCouncil of SOCAR

               WayneWalz, Executive Director

               AIOCCity Training Center

               5,Istiglaliyyat Street

               Baku,Azerbaijan

               Tel:+994-12-971426, 971427

               Fax:+994-12-971422.

               WebPage: http://www.socar-cc.com 

 

**Thefollowing companies (with the exception of the Scientific Production Unit (SPU)Azelectromash) are part of the AzNeftKIMMASH State Company.**

 

               AzNEFTKIMMASH

               50,Moscow Ave.

               Baku,Azerbaijan 370033

               Tel:+994-12-937684, 985779, 936418.

               Fax:+994-12-933968

 

               Indexof Investment Opportunities:

               1.Surakhani Machine Building Plant

               2.Baku Oil Field Equipment Machine Building Plant

               3.Zabrat Machine Building Plant

               4.28 May Machine Building Plant

               5.Sabail Machine Building Plant

               6.Balakhany Machine Building Plant

               7.Sattarkan Machine Building Plant 

               8.Sardarov Machine Building Plant 

               9.Scientific production unit (SPU) Azelectromash

               10.Bakinski Rabochi (Baku Worker) Machine Building Plant 

               11.Kishla Machine Building Plant

               12.Sabunchi Scientific-Technical Pilot Enterprise

 

**Descriptionsof Companies**

 

               1.  - RSA - Industry: Machinery

   Company:Surakhani Machine Building Plant

TheSurakhani Machine Building Plant has been operating since 1925 and currently                   employs 1,200 employees. Thecompany is a state owned enterprise. The plant owns 28 hectares of land andfacilities used for production, warehouses, and wholesale space. Fifteenhectares of land is available for expansion. In addition, a production workshopof 2.5  hectares is available. 

The planthas the following production lines: sucker -rod pumps: barrel insert pumps;barrel tubing pumps; insert pumps; tubing pumps; down -hole gas-liftequipment; gas -lift valves; gas equipment complex; safety valves; gas-liftwell packers; complex of pipe subsea control safety -valves equipment; complexof down -hole equipment for completion and testing; wire line units. Thecompany's current sales total US$5,167,960, but the plant's capacity allowsincreasing sales up to US$10,336,000. The company's customers include SOCAR andoil companies in the NIS. Its financial statements are audited by theappropriate local authorities. The plant has been exporting its products to theMiddle East, Cuba, China, Argentina, Eastern Europe and Africa for more than 30years. The plant has joint ventures with Higgland of Sweden and Energy Venturesof the U.S. for production of sucker -rod pumps. 

The plantis interested in the joint production of equipment manufacturing machinery.This project will be executed under the RSA (Revenue Sharing Agreement) of theCoordinating Council. The plant will provide highly qualified staff, space andequipment, warehouse, and means of communication. A U.S. partner would providefinancing, new technology, equipment for production, managerial expertise andtraining, and international certification. The company

can conductbusiness in English.

               Contacts:Arif Babayev, Direct

               AhadovMehdi, Chief Engineer

               10,S. Bahlulzade Street

               42,Amirjany Settlement

               Baku,Azerbaijan

               Tel/Fax:+99-412-201900

               Source:BISNIS Representative in Azerbaijan

 

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               2.- RSA - Industry: Machinery

   Company:Baku Oil Field Equipment Machine Building Plant

 

The planthas operated since 1880 and currently employs 336 people. It is a state owned         company, and owns 6.2hectares of land currently used for production, wholesale      facilities, andwarehouses. Three hectares of land is available for expansion. 

The planthas the following production lines: Christmas -tree gate valves; valves formud pumps manifold system's pipes; straight -way valves; and Christmas trees.The company's annual sales amount to US$775,000, while the plant has  the capacity to increase its sales upto US$1.55 million. Its financial statements are audited by the appropriatelocal authorities. The plant's customers include SOCAR, NIS companies, and theState Oil Company of Vietnam. The plant has been manufacturing for foreignmarkets for 30 years. Its products are exported to more than 30 countries inthe Middle East, Eastern Europe, Southeast Asia, and Northern Africa.

The plantis interested in the joint production of machinery for manufacturing equipmentunder the framework of RSA.  Theplant will provide highly qualified staff, space and equipment, warehouses,means of communication, and power. A U.S. partner would provide financing, newtechnology, equipment for production, managerial expertise and training, andinternational certification. The company can conduct business in English.  

 

Contacts:Izzat Guseinov, Director

RamizAhmedov, Chief Engineer 

10, ExportStreet

Baku,Azerbaijan 370025

Tel: +994-12-676913

Fax:+994-12-977534

Source:BISNIS Representative in Azerbaijan

 

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3. - RSA - Industry: Machinery

Company: Zabrat Machine Building Plant

 

The ZabratMachine Building Plant was established in 1922 and currently employs 222people. This state-owned enterprise occupies 7 hectares of land used forproduction, wholesale, and warehouses. In addition, the company owns twounfinished workshops of 2.5 hectares each. The plant produces the followingproducts: derricks; derrick substructures; derrick -erection frame hoists; andfuel units. The company's annual sales amount to US$1.0336 million,

whileactual capacity allows generating up to US$2.584 million in revenues. Itsfinancial statements are audited by the appropriate local authorities. Its main clients include SOCAR, NIS andVietnamese companies. The plant has been manufacturing for foreign markets for30 years, and exported its products to Iraq, Iran, Cuba, Syria, Romania,Bulgaria, and Vietnam. It has a monopoly position in the derricks market in theNIS. It has an agreement with Consolidated

SuppliesInternational Ltd.

 

The plantis interested in the joint production of equipment under the framework of RSA.The plant will provide highly qualified staff, space and equipment, warehouse,and means of communication. A U.S. partner would provide financing, newtechnology, equipment for production, managerial expertise and training, andinternational certification. The company can conduct business in English.

               Contacts:Sirajaddin Gasanov, Director

               HagverdiRustamov, Chief Engineer

               37,October Street, Zabrat Settlement 

               Baku,Azerbaijan 370037

               Tel/Fax:+99-412-242004

               Source:BISNIS Representative in Azerbaijan

 

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4. RSA - Industry: Machinery

Company: 28 May Machine Building Plant

 

This state-ownedplant was founded in 1920. The company currently employs 126 people. Thecompany owns 2 hectares of land and premises used for production, wholesale,and warehouses. Its facilities are located in the downtown area.  The plant has pipe carriers and geardrive assembly production lines. Its current sales total US$5,167,960 (200-250pipe carriers annually), but the plant's capacity allows increasing sales up toUS$10,336,000. Its financial statements are

audited bythe appropriate local authorities. Its clients include SOCAR and oil companiesin the NIS. The plant has been exporting its products to Poland, Germany,Afghanistan, Iraq, Syria, and Vietnam for more than 30 years. 

The plantis interested in the joint production of equipment under the framework of RSA.The plant will provide qualified staff, space and equipment for jointproduction. A U.S. partner would provide financing, new technology, productionequipment, managerial expertise and training, and international certification.

               Contacts:Gudrat Hajizade, Director

               AgalarAbdullayev, Chief Engineer

               TamaraShykhaliyeva, Deputy Director for Economics

               JilovIsland

               Tel:+99-412-668311

               Source:BISNIS Representative in Azerbaijan

 

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5. - RSA-  Industry: Machinery

               Company:Sabail Machine Building Plant

 

The SabailMachine Building Plant was founded in 1906. The company currently employs 76people. This state-owned enterprise occupies 0.8 hectares of land used forproduction, wholesale, and warehouses. A workshop is available for expansion.The plant has the following production lines: formation testers; mandrels;tongs; elevators for drill pipes; elevators for casings; suspended air tongsfor well servicing; automatic air tongs for servicing of wells; spears; rodpullers. The company's current sales total US$258,400 annually, while theplant's capacity allows increasing sales up to US$775,200. Its financialstatements are audited by appropriate local authorities. Its customers includeSOCAR and most companies in the NIS countries. The plant has exported itsproducts to the countries of Eastern Europe, Middle East since 1960s. 

The plantis interested in the joint production of equipment under the framework of RSA.The plant will provide qualified staff, manufacturing facilities and equipment,energy supply, and means of communication. A U.S. partner would providefinancing, new technology, equipment for production, managerial expertise andtraining, and international certification.

               Contact:Ali Ismailov, Director

               GudratAliyev, Deputy Director

               37,O.F. Nemanzade Street

               Baku,Azerbaijan 370023

               Tel:+99-412-916006

               Fax:+99-412-914762

               Source:BISNIS Representative in Azerbaijan

 

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             6. RSA -  Industry:Machinery

               Company:Balakhany Machine Building Plant

 

TheBalakhany Machine Building Plant was established in 1882 and currently employs160 people. The plant is a state-owned company. The company owns 3 hectares ofland, including 2 hectares available for development. The plant  manufactures equipment for oil and gasindustry, as well as metal spare parts and links. Its products include bladedrilling bits; gagers; oil field equipment tools; mills; catchers, overshots;spears; taps; slips; and rod carrier bars. The annual sales of equipment amountto US$256,000, while the plant has the capacity to generate up to US$1.025million in  revenues. Its financialstatements are audited by the appropriate local authorities. Its main clientsinclude companies in the NIS countries and SOCAR. 

Theenterprise has 30 years experience of foreign economic activities. In the pastits products were exported to the countries of Eastern Europe, Middle East, andAfrica. 

 The plant is interested in the jointproduction of equipment under the framework of RSA. The plant will providequalified  staff, manufacturingfacilities and equipment, energy supply, and means of communication. A U.S.partner is expected to provide financing, new technology, equipment forproduction, managerial expertise and training, and international

certification.

               Contacts:Sakhavet Abbasov, Director

               EynullaFattahov

               PalakhanySettlement, Baku 370038

               Tel:+99-412-241751

               Fax:+99-412-242303; 985525 (switchboard)

               Source:BISNIS Representative in Azerbaijan

 

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             7. RSA -  Industry:Machinery

               Company:Sattarkan Machine Building Plant 

 

TheSattarkan Machine Building Plant was established in 1894 as a state-ownedenterprise. The plant employs 1,400 people and owns 26 hectares of land. 10hectares of land is currently available and can be used for production or  warehousing. The plant has thefollowing product lines: blowout preventer units; universal preventers;rotating blowout preventers; rotary tables; drilling control hookup; tractor -mounted units and elevators; swivels with 125-300 tons lifting

capacity;sucker -rod transportation units; casing heads; sucker -rods; Christmas -tree gate valves; straight -way valves; Christmas trees; wellhead connection.Its annual sales amount to US$5,128,200, while the plant has the capacity togenerate up to US$12,820,500 in revenues. Its financial statements are auditedby appropriate local authorities. Its main clients include companies in the NIScountries, SOCAR, and state oil companies of Vietnam and Poland. The plant has30 years of experience in foreign economic activities with countries of MiddleEast, Africa, South America, and Southeast Asia. The plant exports to Russia,Ukraine, Uzbekistan, Turkmenistan, Kazakhstan, Vietnam, and Poland.  The plant is interested in jointproduction of equipment under the framework of RSA. The plant will providequalified staff, manufacturing facilities and equipment, energy supply, andmeans of communication. A U.S. partner would provide financing, new technology,equipment for production, managerial expertise and training, and internationalcertification.

               Thecompany can conduct business in English.

               Contacts:Ayam Musayev, Director

               IsmailBehbudov, Deputy Director

               NizamiIsrafilov, Chief Technologist

               86,Tabriz Street

               Baku,Azerbaijan 370072

               Tel:+99-412-660571

               Fax:+99-412-666383

               Source:BISNIS Representative in Azerbaijan

 

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             8.  RSA -  Industry: Machinery

               Company:Sardarov Machine Building Plant 

 

               Thestate-owned plant was established in 1926 and currently employs 1,350 people.The company owns land of 35.5 hectares and production facilities of 15hectares. The plant has the following product lines: lubrication forpumping  units; elements for mudpump manifold systems (8 nominal sizes); blocks for servicing (3 nominalsizes); crownblocks (3 nominal sizes); hooks (4 nominal sizes); manifolds;washover swivel (2 nominal sizes); servicing units for well testers; shaleshakers; catwalk cranes (3 nominal sizes); moving platforms; pipe layers;trailer -mounted cranes (2 nominal sizes);preparation unit. Its annual salesamount to US$3.59 million, while capacity of the plant can generate up toUS$12,820,500 in revenues. Its financial statements are audited by theappropriate local authorities. Its main clients include SOCAR, and

Russian,Ukrainian, Turkmenistani, Kazakhstani, Uzbekistani, Vietnamese, and Polishcompanies. The plant has been exporting its products for 30 years. Exportmarkets include countries in the Middle East, Eastern Europe, and Africa,including India, Indonesia, and Pakistan.

 

The plantseeks U.S. partners for joint production of various products under theframework of RSA of the Coordinating Council. The plant will provide highlyqualified staff, space and equipment, warehouse, and communicationinfrastructure. A U.S. partner would provide financing, new technologies, andproduction equipment.

 

               Contacts:Fazil Mamedov, Director

               VeliFataliyev, Chief Engineer

               MamedKarimov, Deputy Director

               RamizIsmailov, Deputy Director

               BinagadiSettlement, 370053, Baku

               Tel/Fax:+99-412-611854

               Source:BISNIS Representative in Azerbaijan

 

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            9.  RSA -   Industry: Electronics/Machinery

               Company:Scientific Production Unit Azelectromash

 

TheScientific-Production Unit (SPU) is a head office of the electronics plant,Azelectromash which has six affiliate plants  and factories. The SPU employs 1,748 people, Baku ElectricMachine Building Plant -1,250, Electromachine Plant -227, Minimotor Plant -172, Rotor Research Institute -80, Shamkircabel Plant -14, and the affiliatein Lenkoran -5 people.

The SPU wasestablished in 1946. It is a state-owned enterprise with strong prospects forprivatization. The company owns 26.5 hectares of land, with 142,067 sq. m. ofoffice and production space. The main plant, the Baku Electric Machine BuildingPlant and The Research Institute are located in Baku. Electromachina Plant islocated in the Kala Settlement of

Baku,Minimotor Plant -in the town of Kuba, Shamkircabel -in Shamkir, and theLenkoran affiliate -in Lenkoran. All land is the property of Azelectromash.The company has vacant space that can be used for: manufacturing -10,000 sq.m.; warehouse -2,000 sq. m.; office space -1,500 sq. m. In addition,unfinished construction areas total 8,485 sq. m., including 5,184 sq. m. inMinimotor Plant, 900 sq. m. in Lenkoran affiliate, and 2,500 sq. m. inShamkircabel. 

Theactivities of SPU Azelectromash include the development of construction designand technologies, production and repair of asynchronic electric motors,manufacturing of consumer cables and goods, and design and manufacturing of non-standardequipment. Asynchronic electric motors represent the biggest part of company'soutput (technical characteristics include an axis rotation height of 70 to 500millimeters). The production volume of electric motors totals

131,000units a year, or US$43 million. Its main customers are local and NIS companies.10 percent of its output is exported to Europe, Asia, and the Middle East. Theproducts of Azerelectromash are exported to more than 40 countries.  It participates in joint ventures withthe Turkish company Ali Hujel to produce enamel cables, and works with theGerman firms UP GMBH and SH-CONSULTING to produce wind generating devices witha capacity of 1,500 kW. In 1997, SPU Azelectromash was awarded a certificatefrom the Turkish Institute of Standards. 

 

The Unitproposes to establish a joint venture for the production and sales of electricmotors under the framework of a RSA. The company will supply highly qualifiedstaff, manufacturing, warehouse, and office space, existing equipment, means ofcommunications, and power. A U.S. partner would provide new technology,financing, production equipment, and managerial expertise. A business plan in Russian and English isavailable upon request. The company was audited by EBID (European Bank ofInternational Development). It can conduct business in English and willconsider business

               proposalsfrom manufacturers and intermediary companies.

               Contact:Elman Allahverdiyev, General Director

               IdayatzadeE.A, Deputy General Director

               3,4th Poperechnaya Street

               Baku,Azerbaijan 370029

               Tel:+99-412-661463

               Fax:+99-412-983879

               Source:BISNIS Representative in Azerbaijan

 

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               10.  RSA - Industry: Machine Building

               Company:Bakinski Rabochi (Baku Worker) Machine Building Plant

 

TheBakinski Rabochi Machine Building Plant was established in 1900 and itcurrently employs 564 people. It is a state owned enterprise with 9.3 hectaresof land. Four hectares of this land are vacant and can be used for productionfacilities. 

               Theplant has the following product lines:

               -Rod pumping units including 

               unitsfor severe condition (7 nominal sizes);

               -Traveling blocks with 300 tons load capacity;

               -Crownblocks with 300 tons load capacity;

               -Hooks with 300 tons load capacity;

               -Pipe carriers;

               -Gas cylinders (3 nominal sizes);

               -Liquefied gas tank trucks.

Annualsales of equipment amount US$2,050,000.00 while the plant has a capacity toincrease to US$5,130,000.00. Its main clients are SOCAR (State Oil Company of the Azerbaijan Republic),Russia, Ukraine, Uzbekistan, Kazakhstan, and Turkmenistan. 

 

The planthas been manufacturing for foreign markets for 30 years. The export of goods ishandled by the Ministry of Foreign Economic Activities; products of this planthave been exported to more than 30 countries of Middle East, Eastern Europe,Southeast Asia, and Northern Africa. The plant has done joint projects with Consafe Ltd. of the UK and"Nabi Oglu Tijaret" of Turkey.   The plant is interested in contacts with interestedcompanies for joint production of various product lines that will be used formanufacture of equipment, under the RSA (Revenue Sharing Agreement) frameworkof the Coordinating Council. 

The plantwill provide highly qualified staff, space and equipment, warehouse, and allmeans of communication during the course of joint work. The plant attaches ahigh importance to financing, new technology, equipment for production,management knowledge and training, and receipt of international certificatesfor quality work. The appropriate tax organs of the Azerbaijan Republic conductregular audits. The plant is able to conduct business in English..

               Contact:Mamed Veliyev, Director

               JahangirAbdullayev, Chief Engineer

               10,Proletarskaya Street

               Sabulchisettlement, 

               370074-Baku, Azerbaijan.

               Tel:(99 412) 259375

               Fax:(99 412) 259382

 

            **********************************

            11 - RSA

Industry: Machine Building

            Company: Kishla Machine Building Plant

 

           The Kishla Machine Building Plant was established in 1895 and itcurrently employs 993 people. It is a state owned ompany with 13.2 hectares ofland which are used for production, trade, and warehousing. Five hectares ofland are  vacant and one workshopwith a space of 5,000 sq. m. has equipment ready for production of gear driveassemblies. Two workshops (5,000 sq. m. space each) with their equipment standidle.    The plant hasthe following product lines:

               -Truck mounted drilling -rigs for geophysical and search drilling;

               -Truck -and tractor mounted units and elevators for subsurface and workover;

               -Hydrofrac tank trucks

               -Tank trucks (2 nominal sizes);

               -Pumping units' reducing gears (5 nominal sizes).

               Annualsales amount totals US$2,067,180.00 while the plant has a capacity to increasesales to US$5,167,960.00. Current buyers include the state oil companies of the NIS, SOCAR (State OilCompany of the Azerbaijan Republic), and the state oil companies of Bulgaria,Poland, and countries of the Middle East.   The plant has been manufacturing for foreign marketsfor more than 30 years. Products have been exported to more than 30 countriesof the Middle East, Eastern Europe, and Southeast Asia. The plant has a jointventure with Hegglund Lidan

(Sweden)for production of transportation units.   The plant is interested in contacts with interestedcompanies for joint production from various product lines for  manufacture of equipment, under theframework of RSA (Revenue Sharing Agreement) of the Coordinating Council. 

               Theplant will provide highly qualified staff, space and equipment, warehouse, allmeans of communication in the course of joint work. The plant attaches a highimportance to financing, new technology, equipment for production andreceipt  of internationalcertificates for quality work.  The appropriate tax organs of the Azerbaijan Republic conduct regularaudits. The plant is able to conduct business in  English.

               Contact:Vasif Babayev, Director

               BabekSadikhov, Deputy Director

               105,Moscow Avenue,

               370603-Baku, Azerbaijan

               Tel:(994 12) 662800

               Fax:(994 12) 671247

 

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               12.- RSA 

               Industry:Scientific Equipment

               Company:Sabunchi Scientific-Technical Pilot Enterprise

 

               TheSabunchi Scientific-Technical Pilot Enterprise was set up in 1914 and itcurrently employs 1200 people. It is a state  owned enterprise with 28 hectares of land, which is used forproduction, trade, and warehousing, all of the facilities are  the property of the plant.  The plant has vacant space. A finishedworkshop stands idle with 5,000-sq. m. of space and an unfinishedconstruction  area of 5,000-sq. m.that needs to be completed.  The plant has the following production lines:

               -Fluid mobile tanks;

               -Pumping unit washing trucks (6 nominal sizes);

               -Well survey units (7 nominal sizes);

               -Condensate units;

               -Asidizing units;

               -Conduit repair;

               -Well cement bridge units.

               Annualsales total US$5.168 million but the plant has a capacity to increase thesesales to $12.92 million. The main buyers of its equipment are SOCAR (State Oil Company of the AzerbaijanRepublic), Russia, Ukraine, Kazakhstan, Turkmenistan, and Uzbekistan.   Its products have been exportedto the countries of Middle East, Eastern Europe, and Southeast Asia for morethan 30 years. The plant does not have direct relations with foreign partnersas communications are held through the head office.

 

               Theplant is interested in contacts with interested companies for joint productionof various product lines for manufacture of equipment, to work under the framework of RSA (RevenueSharing Agreement) of the Coordinating Council.  The plant will provide highly qualified staff, space andequipment, warehouse, all means of communication, water supply  in the course of joint work. The plantattaches high importance to financing, new technology, equipment forproduction,

 and management knowledge and receipt ofinternational certificates for quality work like API.

 The appropriate tax organs of theAzerbaijan Republic conduct regular audits.

               Contact:Oruj Mamedov, Director

               EyubMamedov, Chief Engineer

               5,Aslanov Street, 

               370035-Baku, Azerbaijan

               Tel:(994 12) 241584.

               Fax:(994 12) 

 

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