SOCAR, Turan Fibron Pipe ink Heads of Agreement

BAKU, Azerbaijan, October 19. The State Oil Company of Azerbaijan (SOCAR) and Turan Fibron Pipe LLC (TFP) have signed a Heads of Agreement (HoA) establishing a framework for cooperation on the local manufacture and supply of advanced flexible composite pipe solutions in Azerbaijan, Turan Energy Group told Trend on October 19.

"The HoA builds on the Memorandum of Understanding signed between SOCAR and Turan Energy on 24 December 2025 and follows a successful pilot project implemented earlier this year at the “Absheronneft” OGPU by Turan Energy and Fibron Pipe, in cooperation with Azneft. The pilot demonstrated the technology under local operating conditions and created a technical basis for progressing toward localisation and industrial-scale application," the company said.

Reportedly, the planned manufacturing project combines Azerbaijan's industrial capabilities with the fully bonded reinforced thermoplastic pipe technology, licence and manufacturing expertise of Fibron Pipe GesmbH of Austria.. The localisation model is designed to achieve up to 80% local content, including the use of locally sourced raw materials, with SOCAR Polymer expected to play an important role as a local feedstock supplier.

"Fully bonded reinforced thermoplastic pipes offer several advantages for suitable oil and gas applications.. Their corrosion-resistant construction and smooth internal bore can reduce hydraulic resistance and pressure losses, support efficient flow performance, and reduce corrosion-related maintenance and replacement. Spoolable construction, fewer field connections and faster installation can also shorten pipeline replacement and intervention periods, improving asset uptime and total cost of ownership. These characteristics can contribute to lower lifecycle emissions by reducing welding, heavy logistics, repeated maintenance and replacement activity," the company said.

Habib Hasanov, Chairman of the Supervisory Board, Turan Energy Group pointed out that this agreement is an important step for Turan Energy Group as it moves from technology-focused energy services into advanced manufacturing in Azerbaijan.

"Together with Fibron Pipe, our objective is to localise cutting-edge composite pipe technology, transfer European know-how and build strong local engineering and manufacturing capabilities. We are targeting up to 80% local content, supported by Azerbaijani raw materials, and we believe this technology can help operators such as SOCAR improve pipeline efficiency and reliability while reducing lifecycle costs and the carbon footprint associated with pipeline construction and maintenance. Just as importantly, we want to create a new high-technology Made-in-Azerbaijan product for export across the Caspian region and beyond. Localisation, technology transfer, decarbonisation and export are the four pillars of our vision for Turan Fibron Pipe," he noted.

For TFP, the HoA is an important milestone toward establishing a local advanced-manufacturing platform capable of serving SOCAR and other operators in Azerbaijan while reducing dependence on imported steel pipe in suitable applications. The project is expected to create up to 100 jobs, with approximately one-third of planned production targeted for export markets.

"Composite and reinforced thermoplastic pipe technologies are increasingly being deployed and qualified by leading international oil and gas operators for production flowlines, water injection, gas and other demanding services. TFP aims to bring this international technology trend into local production and develop Azerbaijan as a regional manufacturing and export platform for advanced composite pipe solutions. Subject to the successful conclusion of the relevant definitive agreements and required corporate and regulatory approvals, the parties intend to continue working together on the commercial, technical and implementation framework for the project," said the company.

Turan Energy Group is an Azerbaijan-based, technology-oriented energy services group focused on introducing advanced solutions across the energy and industrial sectors. The Group is expanding into local manufacturing through investments that support technology transfer, localisation and export-oriented industrial growth.

Turan Fibron Pipe LLC is an Azerbaijan-based industrial company established to develop local manufacturing of advanced flexible composite pipe systems using Fibron Pipe`s specialised European fully bonded RTP technology, with a focus on localisation, technology transfer, operational efficiency and export development.