SOFAZ to allocate over $400M for building refinery in Turkey

Oil&Gas Materials 24 October 2017 12:10 (UTC +04:00)

Baku, Azerbaijan, Oct. 24

By Maksim Tsurkov – Trend:

The State Oil Fund of Azerbaijan (SOFAZ) will allocate $432.6 million in 4Q17 as part of financing the project of Star oil refinery’s construction in Turkey, SOFAZ has told Trend.

The refinery belongs to the Azerbaijani state oil company SOCAR.

As of October 1, $960.2 million was allocated for the project's implementation.

The total cost of the Star oil refinery construction is about $5.6 billion.

The refinery will be able to process 10 million tons of oil per year with storage capacity volume of 1.6 million cubic meters. The plant will annually produce 1.6 million tons of naphtha, 5 million tons of diesel fuel, 1.6 million tons of jet fuel, 300,000 tons of liquefied petroleum gas and 1 million tons of raw materials for the manufacture of petrochemicals.

As of October 1, SOFAZ’s assets increased by 8.7 percent as compared to early 2017 and amounted to $36.02 billion.

SOFAZ was established in 1999 with assets of $271 million.

Based on SOFAZ's regulations, its funds may be used for the construction and reconstruction of strategically important infrastructure facilities, as well as solving important national problems.

The main goals of the State Oil Fund include: accumulation of resources and the placement of the fund's assets abroad in order to minimize the negative effect on the economy, the prevention of "Dutch disease" to some extent, promotion of resource accumulation for future generations and support of current social and economic processes in Azerbaijan.