Star refinery financing agreement to be signed by end of 2013

Oil&Gas Materials 24 May 2013 19:18 (UTC +04:00)

Azerbaijan, Baku, May 24 / Trend, A. Tagiyeva /

By the end of the year, SOCAR Turkey Energy and Turcas Petrol will sign an agreement with financial institutions on financing the construction of the Star Oil Refinery, chairman of the board of directors of Turcas Petrol Erdal Aksoy said, 'Star' newspaper reported Friday.

According to Aksoy, they are currently negotiating with six export-import banks from Spain, Italy, South Korea, Japan, France and the U.S., as well as with the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC).

"$ 1.75 billion will be spent on the construction of Star from our own assets, and the rest in the amount of $ 3.25 billion will be provided through bank financing," Aksoy said.

As Yavuz told Trend before, Star refinery's processing capacity will equal 10 million tons of oil and capable of processing such oil grades as Azeri Light, Kirkuk and Urals. Annual production at the refinery will equal 1.6 million tons of naphtha which will reduce Petkim's dependence on imports of this type of oil product to zero, he said.

According to Yavuz, along with naphtha, the Star refinery will also produce 5.9 million tons of diesel fuel with ultra-low sulphur, 500 tons of aviation fuel, 630,000 tons of petroleum coke, 240,000 tons of liquefied petroleum gas, 415,000 tons of mixed oxylenes, 75,000 tons of olefin liquefied petroleum gas and 145,000 tons of sulphur.

The total capacity of the refinery will be 10 million tons and petroleum products manufactured at the plant will be aimed at meeting the needs of the Petkim chemical concern and the domestic market of Turkey.