Loan agreements on new SOCAR refinery in Turkey to be signed in late May
Baku, Azerbaijan, May 13
By Emil Ismayilov - Trend:
The signing of loan agreements within the framework of the construction project of the Azerbaijani State Oil Company's new refinery in Turkey will be held in Istanbul in late May, head of the company Rovnag Abduallayev told journalists.
It is also planned to sign loan agreements with export-import banks in London in late May, he said.
The agreement has not been signed, but all the issues have been agreed upon, according to Abdullayev.
Earlier, SOCAR has reached an agreement with financial institutions totaling $ 3.5 billion for the construction of the "Star" oil refinery.
Meanwhile, $3 billion out of the total borrowings accounted for export-import banks (Spain, Italy, Japan, the U.S. and South Korea) and 15 commercial foreign banks. Some $500 million will be provided by the Turkish "Garanti Bankası".
The loans will be allocated for a 18-year period. The oil refinery is planned to be commissioned in 2018.
SOCAR Turkey Yatirim JSC (with an authorized capital of $1.9 billion and a 40 percent public share) was established in line with Azerbaijani President Ilham Aliyev's decree on additional measures to support the participation of Azerbaijan in the Star refinery construction project in Turkey.
The government's 40 percent share (worth $760 million) in the SOCAR Turkey Yatirim will be funded by the State Oil Fund of Azerbaijan (SOFAZ), according to the decree.
Some $475 million were allocated from the State Oil Fund of Azerbaijan to finance this project. The total cost of the project on the construction of SOCAR's refinery in Turkey exceeds $5 billion.
The annual naphtha production volume, used by Petkim as the main raw material, will hit 1.66 million tons at the Star refinery.Along with naphtha, the new oil refinery will produce diesel fuel with ultra-low sulfur to the amount of 5.95 million tons, aviation kerosene - 500,000 tons, reformate - 500,000 tons, petroleum coke - 630,000 tons, liquefied gas - 240,000 tons, mixed xylene - 415,000 tons, olefin LPG - 75,000 tons and 145,000 tons of sulfur. The refinery will not produce petrol and fuel oil.
Edited by S.I.