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SOCAR names construction cost of refinery in Turkey

Oil&Gas Materials 30 December 2010 14:51 (UTC +04:00)

Azerbaijan, Baku, Dec. 30 / Trend E. Ismayilov /

SOCAR plans to build a new refinery in Turkey to meet the demand for raw materials in petrochemical complex Petkim. Its cost is projected at $4,8-5,2 billion, a high-ranking representative at SOCAR said.

He said that the issue of drawing the loan has not been resolved yet. According to world-wide practice, the company drawing the credit, usually invests roughly 25-30 percent in the project. The amount of lending hits the 70-75 percent level.

The refinery is built in Turkey to meet the needs of the petrochemical company, Petkim, in straight-run gasoline. At present, the company buys it on the open market.

"The difference in the cost of straight-run gasoline on the open market to that in the production at the oil refinery is about $30 per ton," he said.

The refinery will produce aviation kerosene and diesel fuel, which will be sold on the domestic market in Turkey. It will be also exported. The source noted the attractiveness of the growing market in Turkey.

The total production capacity of the refinery was 10 million tons per year, with the output of finished goods at 92-93 percent. The aim is to build it within 5 years, starting in 2011. The details of the design of the refinery, a full assessment of its cost, and financing will be made next year.

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