BAKU, Azerbaijan, April 5. The State Oil Company of Azerbaijani (SOCAR) and Russian Tatneft PJSC can successfully cooperate in several areas, Argus Media Expert Valentin Kotlomin told Trend during a webinar on prospects for the development of the petrochemical industry in the South Caucasus and Central Asia.
He made the remark while discussing the opportunities for
collaboration following the signing of the relevant agreement
between the two companies in March this year.
According to him, the most likely two areas of petrochemical
cooperation between SOCAR and Tatneft are the Roadmap signed by
both companies in November 2023 and the petrochemical cooperation
agreement signed on March 8, 2024 (without specifying details).
“Tatneft currently intends to expand the production of propylene and polypropylene using its oil refining complex TANECO. Azerbaijan, through SOCAR Polymer, has experience in this sector using advanced technologies. Therefore, SOCAR's experience and consultations may be relevant and valuable for TANECO,” Kotlomin said.
The second real area of interaction between SOCAR and Tatneft is the development of the Petkim petrochemical holding, owned by SOCAR since 2008.
“Tatneft had previously expressed an interest in purchasing Petkim shares, but SOCAR won the Turkish government's international tender in 2008. Tatneft is again interested in the Turkish market. SOCAR Türkiye declared at the end of March 2024 that it intends to extend its portfolio of petrochemical projects in Turkey and is exploring investment options. It is probable that SOCAR Türkiye will communicate with Tatneft through this effort," Kotlomin added.
To note, SOCAR acquired a controlling stake in Petkim in 2008 for $2.04 billion, and over 15 years invested an additional $1.7 billion in the holding.
The holding covers 12 percent of Türkiye's needs for petrochemical products and includes 15 production facilities with a total capacity of 3.6 million tons of 60 types of products per year.
PJSC Tatneft was founded in 1950 and is headquartered in Almetyevsk, Russia. The company, along with its subsidiaries, explores, develops, and produces crude oil predominantly in Russia. The corporation operates in four segments: exploration and production, refining and marketing, petrochemical products, and banking.