Azerbaijan eyes to earn $850M per year from Star refinery (UPDATE)

Oil&Gas Materials 20 September 2017 16:53 (UTC +04:00)

Details added (first version posted at 13:40)

Baku, Azerbaijan, Sept. 20

By Maksim Tsurkov – Trend:

Annual income of Azerbaijan’s economy from the Star oil refinery, being constructed by SOCAR on Aliaga Peninsula in Turkey, will be about $850 million within the first five years after its commissioning, said SOCAR President Rovnag Abdullayev.

He made the remarks Sept. 20 in Baku at an event dedicated to the Oilmen Day.

Over the next 10 years, the annual income will be $610-615 million, according to him.

“The refinery’s construction will be completed in the second half of 2018. The refinery will primarily provide naphtha to the Petkim petrochemical complex, which aims to take up to 30 percent share of the Turkish market,” Abdullayev said.

He also noted other projects implemented by SOCAR, which will bring large income to Azerbaijan’s economy.

“Profitability of the SOCAR Polymer project, which will be launched in 2018, is estimated at $10-11 billion, 30 percent of which is expected to be net profit. Profitability of the urea plant, which will also be launched next year, is expected to be at the level of $140-145 million per year,” Abdullayev added.

The total cost of the project for building the Star oil refinery exceeds $5 billion.

Under a decree of Azerbaijan’s President Ilham Aliyev on additional measures to support the participation of Azerbaijan in the construction of the Star refinery in Turkey, SOCAR Turkey Yatirim JSC was created with an authorized capital of $1.9 billion and with 40-percent share held by the state. Under the decree, the state share in the JSC will be financed by SOFAZ.

The annual production of naphtha, used by Petkim as the main raw material, will amount to 1.66 million tons at the Star refinery. Along with naphtha, the new oil refinery will produce 5.95 million tons of diesel fuel with ultra-low sulfur content, 500,000 tons of aviation kerosene, 500,000 tons of reformate, 630,000 tons of petroleum coke, 240,000 tons of liquefied gas, 415,000 tons of mixed xylene, 75,000 tons of olefin LPG and 145,000 tons of sulfur. The refinery will not produce petrol and fuel oil. It is planned to refine Azeri Light, Kerkuk and URALS oil at the plant.