KazMunayGas and SOCAR Discuss Consortium Composition to Construct Oil Refining

Oil&Gas Materials 2 September 2008 11:15 (UTC +04:00)

Kazakhstan, Astana, 2 September / Trend corr. K.Konirova / KazMunayGas company holds talks with the State Oil Company of Azerbaijan (SOCAR) on the composition of a consortium to construct oil refining in the Turkish Ceyhan port, a source from KazMunayGas said to a special correspondent of Trend .

"There are two versions of the project. The first is to construct oil refining with 15mln tons oil capacity per year through two stages -7.5mln tons. The second is to construct oil refining with 20mln tons oil capacity yearly," a source said.

Such projects are real as the Turkish Ceyhan port will turn out the largest hub on oil supply.

"Port is able to concentrate to 177mln tons oil per year. For this reason, we have to construct the oil refining on the port," a source said.

Oil refining construction will take six years, and during the period oil will be transported from the Kazakh Kashgn field.

Project's feasibility study has already been developed. Implementation of the project is complicated with purchasing of land plots in Ceyhan.

Part of the land is owned by the government, and other part is under private ownership. KazMunayGas "would like to get SOCAR's support".

"While signing the memorandum we invited SOCAR to unite efforts: Eni is an operator of the Kashgan project, Oil India - creator of feasibility study, Calik Enerji and SOCAR - owner of the Baku-Tbilisi-Ceyhan pipeline and oil. The door still remaining opened and the talks are being continued on the project," a source said.

Large sorts of oil products: benzene, black oil, diesel, aviation kerosene and petrochemistry products are expected to be produced in the oil refining.

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