Azerbaijan, Baku, Dec. 30 / Trend E.Ismayilov /
The State Oil Company of Azerbaijan (SOCAR) is planning to launch a new Star oil refinery in Turkey in 2016, the head of SOCAR Rovnag Abdullayev said at the event on the year totals on Sunday.
"The consortium for the implementation of construction work, scheduled to begin next year, has already been identified," he said.
Up to six billion dollars will be sent to back the construction of a new oil refinery in Turkey. The work will be partly financed by shareholders' funds (30 per cent) which will equal $1.8 billion, while the rest will be financed through bank loans.
The main purpose of this enterprise is to provide raw materials for the Petkim petrochemical complex , a share of which is owned by State Oil Company of Azerbaijan (SOCAR).
The annual production capacity of naphtha at the plant which is used by Petkim as a raw material, will reach 1.66 million tons.
More than 80 per cent of the Petkim needs in naphta are provided by imports. With the commissioning of the new refinery, dependence on imports will be reduced to zero.
Exemption from the payment of value added tax and customs duties is granted in the project.
Simplification of tax up to 90 per cent is envisaged and the state will provide a VAT refund during the construction of the plant.
In addition, Turkey will pay the minimum amount of insurance to workers within a period of seven years and allocate $50 million (five per cent of the total investment volume) as assistance in the payment of interest.