New partner in SOCAR`s refinery in Turkey considered
Baku, Azerbaijan, July 7
By Emil Ismayilov- Trend:
The State Oil Company of Azerbaijan is considering the possibility of entering a new partner in the shareholding structure of the "Star" refinery which is under construction in Turkey, the Turkish Milliyet newspaper wrote citing Head of SOCAR Turkey Enerji Kenan Yavuz.
The new partner of SOCAR Turkey Enerji can be both foreign and local companies in this project, he said.
"The share of the new partner in the "Star" refinery will not exceed 10-15 percent," Yavuz noted.
Today, the share distribution in the project as follows: 60 percent of share in the "Star" refinery belongs to "Rafineri Holding A.S." (100 percent owned by "SOCAR Turkey Enerji A.S."), which had previously acquired the remaining 18.5 percent share of "Turcas Petrol" in the project and 40 percent in SOCAR.
The total cost of the project on the construction of SOCAR's refinery in Turkey exceeds $5 billion. 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.
SOCAR signed loan agreements totaling $3.29 billion with around 23 financial institutions in the Turkish city of Istanbul on June 6, SOCAR Turkey Energy said. The agreements have been signed as part of constructing a new Star refinery in Turkey. The loan package consists of the funds of export-import banks (Spain, Italy, Japan, U.S. and the Republic of Korea), some 16 foreign trade and investment banks, as well as one local bank.
The oil refinery is to be commissioned in 2018.
The annual naphtha production volume, used by Petkim as the main raw material, will hit 1.66 million tonnes 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 tonnes, aviation kerosene - 500,000 tonnes, reformate - 500,000 tonnes, petroleum coke - 630,000 tonnes, liquefied gas - 240,000 tonnes, mixed xylene - 415,000 tonnes, olefin LPG - 75,000 tonnes and 145,000 tonnes of sulfur. The refinery will not produce petrol and fuel oil.
Edited by CN