Azerbaijan, Baku, Dec. 13 / Trend E.Ismayilov /
The State Oil Company of the Azerbaijan Republic (SOCAR) considers the business offers of the European and Asian companies to supply equipment and technology for its new refinery to be built in Turkey, a senior official of SOCAR said on Monday.
The source said the company has already defined a company that will develop the detailed engineering of a new refinery. In particular, a draft contract on the project has also been prepared and it is expected to be signed soon. The source did not name the company, but noted that it is very well known company.
Regarding the launch of the construction, the source pointed out that this requires existence of all components, including technology, equipment, and the solution to the issue of funding. In particular, negotiations are underway to find sources of financing to the construction of new refineries. Construction will be funded through loan funds.
I think we will probably be able to start construction next spring," the source said.
The general thrust of the plant is defined. The new plant's capacity will be 10 million tons per year. According to the plans, it will be constructed by 2014.
The new refinery is built to meet the needs of the Turkish petrochemical complex Petkim, in which SOCAR has equity. The construction involves making investments to the amount of $3.5-5 billion.
In 2008, the alliance between SOCAR and Turcas Petrol / Injaz Projects has won a tender to sell 51 percent stake of chemical concern Petkim, offering $2.04 billion. Now Turkey imports 70-75 percent of the necessary chemical products. Investments of SOCAR / Turcas / Injaz to the development of Petkim will reduce imports by 30 percent.