Azerbaijan, Baku /corr. Trend S.Aliyev / Investments by the alliance SOCAR/Turcas/Injaz for modernizing the production capacity of the Turkish Petrochemical Holding Petkim will increase the enterprise's share in the market of Turkey from the current 27% to 40%, said the Vice President of the State Oil Company of Azerbaijan (SOCAR), Davud Mammadov, on 17 October.
"During the next the years, investments by the alliance may amount to $50-60mln," Mammadov said.
According to Mammadov, Turkey currently imports 70-75% of the necessary chemical products, but developing Petkim, the investment alliance SOCAR/Turcas/Injaz will provide an opportunity to increase the import up to 30%. The annual increase of chemical product demand in Turkey makes up 12%.
"Investments may pay for themselves in the next 5-6 years, everything will depend on the market," Mammadov said.
This week the Privatization Organization of Turkey cancelled the results of the tender on purchase of 51% of Petkim and announced the alliance SOCAR/Turcas/Injaz, the winner of a tender for the purchase of 51%-share of the Turkish chemical holding Petkim. At the beginning of July Transcentral Asia Petrochemical Holding company offered a low price for the tender on Petkim ($2.05bln), whereas the regulating body of the Turkish Government annulled the results of the tender and announced SOCAR/Turcas/Injaz the winner, who offered $2.04bln.
The decision by the Privatization Organization of Turkey should be approved within two months by Turkey's Supreme Body on Competition, Ministries of Ecology, Finance, Fuel and Energy and finally by the Prime Minister of Turkey, Rejeb Tayyub Erdogan.
The SOCAR Vice President said that SOCAR/Turcas/Injaz alliance intends to construct a refinery near Petkim for supplying raw material to the enterprise. Initially the capacity of the refinery will make 6mln tons of oil per year.