SOCAR to sign deal on its Turkish refinery financing within a month
Azerbaijan, Baku, Feb. 14 / Trend A.Badalova /
The State Oil Company of Azerbaijan (SOCAR) will sign a preliminary deal with a banking consortium on financing its Star Oil Refinery in Izmir within one month, SOCAR Turkey Energy head, board member of the Petkim Petrochemical Complex, Kenan Yavuz told in interview to Reuters.
According to Yavuz, apart from financing costs, the total cost of the refinery financing will amount to $4 billion.
"Of that we will provide $1.9 billion from our own equity," Yavuz said.
SOCAR has so far invested $200 million from its equity in the project.
The total capacity of the refinery is 10 million tons and oil products produced at the plant will be directed to meet the needs of the Petkim chemical complex and the Turkish domestic market.
The annual production capacity of naphtha at the plant which is used as a raw material by Petkim, will reach 1.66 million tons. More than 80 per cent of the Petkim needs in naphtha are provided by imports. With the commissioning of the new refinery, dependence on imports will be reduced to zero.