SOCAR to be Turkey’s largest industrial company by 2023
Baku, Azerbaijan, Nov. 5
By Emil Ismayilov - Trend:
SOCAR Energy Turkey intends to become the largest industrial company in Turkey by 2023, SOCAR Energy Turkey head Kenan Yavuz said at the second forum Nov. 5 dedicated to OGPC (a project of establishing a new oil and gas processing and petrochemical complex in Azerbaijan).
He said that the company's total turnover by 2023 will amount to $30 billion. In 2018 this figure is expected to reach $15 billion.
"The company is currently implementing a number of large projects in Turkey, namely, the construction of an oil refinery, a container port and electricity generation facilities," Yavuz said.
He said that a new refinery "Star" is expected to be commissioned in early 2018. Afterwards, the company will turn into the second largest industrial company in Turkey.
SOCAR and a consortium of Tecnicas Reunidas SA, Saipem SpA, GS Engineering & Construction Corp and Itochu companies signed an EPC- contract (Engineering, procurement and construction) in May 2013, to construct the Star refinery.
The total capacity of the refinery will be 10 million metric tons. Oil products produced at the refinery will be delivered to meet the needs of the Petkim chemical concern and the Turkish domestic market.
The annual production of naphtha at the Star factory, used by Petkim petrochemical complex, in which SOCAR has equity participation, will account to 1.66 million metric tons as the main raw material.
Along with naphtha, the new oil refinery will produce diesel fuel with ultra-low sulfur to the amount of 5.95 million metric tons, aviation kerosene - 500,000 metric tons, reformate - 500,000 metric tons, petroleum coke - 630,000 metric tons, liquefied gas - 240,000 metric tons, mixed xylene - 415,000 metric tons, olefin LPG - 75,000 metric tons and 145,000 metric tons of sulfur. The refinery will not produce petrol and fuel oil.
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. Around $3.29 billion will be drawn from 23 financial institutions.
Turkish petrochemical complex Petkim and Dutch company APM Terminals signed an agreement on construction of a container port with the capacity of 1.5 million TEU in February 2013. APM Terminals will be entitled to manage the port for 28 years. A container port is planned to be completed by late 2014 - early 2015. The project will cost $ 400 million.
A power station of Petkim petrochemical holding is planned to be constructed in Izmir in 2016. The power station will be put into operation the same year.
SOCAR includes Azneft (a production association of enterprises that produce oil and gas on land and sea), Azerkimya (a production association of chemical industry enterprises) and Azerigas (deals with distribution of gas in the country).
The company also includes a number of processing and service enterprises, and institutions involved in geophysical and drilling operations.
SOCAR is the sole petroleum products manufacturer in Azerbaijan with two oil refineries. The company owns filling stations in Azerbaijan, Georgia, Ukraine, Romania and Switzerland.
edited by CN