Turkish newspaper: SOCAR intends to acquire BP Turkey

Oil&Gas Materials 23 May 2012 13:19 (UTC +04:00)

Azerbaijan, Baku, May 23 / Trend, A.Taghiyeva /

The State Oil Company of Azerbaijan (SOCAR) intends to acquire the assets of BP Turkey which deals with the sale of oil products on the Turkish market, the HaberTurk newspaper reported on Wednesday.

According to the report, SOCAR and BP Turkey are negotiating and a final agreement is expected to be signed for transfer of BP Turkey's assets to SOCAR in the coming days.

If SOCAR acquires BP Turkey, the company will have a 10 per cent stake on the Turkish market of fuel sale which means that SOCAR will be among four largest companies in Turkey dealing with distribution of fuel in the country.

Earlier, managing director of SOCAR Turkey Enerji (Turkish division of SOCAR) Kenan Yavuz said that his company intends to participate in the selling of oil products in Turkey.

"Upon construction of an oil refinery, SOCAR Turkey Enerji can cooperate with one of the distribution networks in Turkey. Cooperation with Shell Turcas will be important in this regard because Shell Turcas is a co-owner of the Star plant in Izmir," Yavuz said. For this purpose, SOCAR can create a new company for distribution of fuel and purchase it.

SOCAR is the only producer of oil products in the country (it has two refineries on its balance sheet) and also owns petrol stations in Azerbaijan, Georgia and the Ukraine. Last year SOCAR purchased a network of gas filling stations in Switzerland. The company is co-owner of the largest Turkish petrochemical complex Petkim which carries out oil trade in various regions of the world through SOCAR Trading.

The total capacity of the refinery is 10 million tons and oil products produced at the plant will be designed to meet the needs of the Petkim chemical complex and the domestic market of Turkey. The project cost is estimated at $5 billion.