Petkim to buy big stake from STAR refinery’s shareholder
Baku, Azerbaijan, Jan. 10
By Azad Hasanli – Trend:
The petrochemical complex Petkim has agreed to acquire a 30-percent stake of SOCAR Turkey Energy in Rafineri Holding, which owns a controlling stake in the STAR refinery.
The Turkish media outlets report that the cost of the deal, to be completed in March 2019, is $720 million.
The payment will be made in three tranches: the first tranche will be paid after the contract is signed, the second – when the test launch of the STAR refinery is carried out, and the third one – once the refinery starts operation.
Reportedly, the acquisition of a 30-percent stake in Rafineri Holding will enable Petkim to also acquire an 18-percent stake in the STAR refinery.
Petkim produces plastic packages, fabrics, detergents, and is the sole Turkish manufacturer of such products, a quarter of which is exported. The production capacity of Petkim is 3.6 million tons per year.
Petkim shareholders are SOCAR Turkey Petrokimya AS (51 percent), Goldman Sachs (7.68 percent), and other shareholders (41.32 percent).
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.