BAKU, Azerbaijan, December 18. SOCAR Türkiye Energy AS (STEAS), a subsidiary of the State Oil Company of Azerbaijan (SOCAR), celebrates 15 years of operation in Türkiye, during which time it has become one of the country's leading integrated industrial groups and one of the largest foreign investors, with a total investment volume of nearly $20 billion, Trend reports.
SOCAR's involvement in Türkiye began in December 2008, when Turkish regulatory authorities granted SOCAR the ability to acquire a portion of the petrochemical conglomerate "Petkim Petrokimya Holding." This clearance came after the "SOCAR/Turcas-Petrol/Injaz" consortium won an international tender to acquire a 51 percent stake in Petkim for $2.04 billion at the end of 2007.
The complex, which has been in operation in Türkiye since 1965, consists of 15 major units and six ancillary processing facilities that produce around 60 different types of petrochemical products. Plastic components for packaging, building, pipelines, the chemical industry, agriculture, electricity, autos, medicines, textiles, and detergents have an annual production capacity of 3.6 million tons. Under SOCAR's direction, polyethylene facility output capacity increased by 20 percent in 2011.
Petkim is a member of the Istanbul Chamber of Industry in the Aegean region, has received multiple honors for industrial growth achievements, and controls nearly 20 percent of the Turkish petrochemical sector.
SOCAR has spent over $1.6 billion in Petkim during the last 15 years, and the company has recently reached record earnings (net profit of 6.5 billion lira in 2022) due to 70 percent growth in sales and product export geography expansion (to approximately 80 countries).
Petkim's activities are linked to the port (previously known as "Petlim," now "Terminal SOCAR"), which is located near to the holding's enterprises. From 2016 to 2018, two phases of port upgrading were completed at a cost of approximately $400 million. The third phase, which will increase port reception capacity, is scheduled for 2024.
The decision to establish an oil refinery (STAR Refinery) near Petkim in 2011 was an important milestone for SOCAR Türkiye, resulting in an integrated structure of enterprises. In 2012, construction agreements were finalized, culminating in the STAR Refinery, which has a processing capacity of 10 million tons of oil per year. Work on expansion began in 2022, and by 2024, the refinery is expected to process 13 million tons of oil per year. The refinery generates naphtha, which is used to make Petkim.
The Presidents of Azerbaijan and Türkiye discussed the TANAP (Trans-Anatolian Natural Gas Pipeline) project in 2012, which would connect Azerbaijan, Georgia, and Türkiye. TANAP, which has an annual capacity of 16 billion cubic meters, began operations in 2015 and has since become an important link in Azerbaijani gas exports to Türkiye and Europe.
In 2018, the Petkim and STAR Refinery area in Aliaga, near Izmir, was designated as a private industrial zone managed by STEAS. SOCAR Türkiye purchased gas distributors "Bursagaz" and "Kayserigaz" (with over one million customers), telecommunications business "Millenicom" (with about 220,000 clients), and activated the "Ar-Ge" research and innovation center in petrochemical technologies and renewable energy in 2019.
Meanwhile, Petkim gets a portion of its electricity from a $55 million wind power plant.
In Aliaga, "SOCAR Depolama" also stores petroleum goods and liquefied gas.
"SOCAR Ticaret" operates throughout Türkiye, specializing in the wholesale and retail trading of petroleum products, as well as delivering fuel to major Turkish airports.
The "Türkiye Refining and Petrochemical Business Unit" is a subsidiary structure of STEAS that includes the STAR Refinery, Petkim, SOCAR Ticaret, SOCAR Depolama, and the Petkim wind plant.
Another SOCAR Türkiye affiliate is the "SOCAR Fiber" company, which was created ten years ago and provides high-quality electronic communication and internet services to large networks such as TANAP.
The construction company "SCR Gayrimenkul" is an important part of STEAS's portfolio.
Thus, after 15 years in the Turkish market, SOCAR Türkiye has covered a wide range of critical areas, but it intends to broaden its portfolio with new efficient initiatives.