SOCAR project for oil refinery construction in Kyrgyzstan so far unprofitable
Astana, Kazakhstan, Dec. 3
By Daniar Mukhtarov - Trend:
The Azerbaijani State Oil Company's (SOCAR) project for construction of an oil refinery in Kyrgyzstan is unprofitable unless the issue of stable raw materials sources and supplies for it gets resolved, an informed source in SOCAR told Trend Dec. 3.
The source said that if the oil is supplied to the prospective oil refinery in Kyrgyzstan from Azerbaijan, the delivery logistics will be very expensive, and therefore the cost of petroleum products will be uncompetitive.
The interviewee added that the oil refinery project is one of the so-called hypothetical projects.
"These projects can be discussed for a long time in a slow mode until there is a situation favorable for such a development," he said.
The agreement on reviewing the issue of construction of SOCAR oil refinery in Kyrgyzstan was reached by the parties in January 2012 at a meeting between Kyrgyzstan's President Almazbek Atambayev and SOCAR President Rovnag Abdullayev.