Azerbaijan, Baku / Trend / Turkey intends to approve the projects to construct three new oil-refining plants with total cost of $11bln to be carried out by the State Oil Company of Azerbaijan Republic (SOCAR), Indian Oil Corporation and OMV AG, the head of the energy market management of Turkey, Yusuf Gunay, reported to correspondents on 21 May.
According to Gunay, SOCAR and Turkish company Turcas Petrolculug have plans to invest $1bln to the first stage of the construction of the plants with a total capacity of 10mln tons. The companies have already submitted their applications.
Indian Oil Corporation and Turkish company Calik Holding construction company will be issued a license on 25 May to build an oil-refining plant capable of producing 15mln tons of oil per year. The cost of the project is assessed at $4.9bln. According to Gunay, a license will be issued to the OMV company and its partner Petrol Ofisi for construction of a plant with a capacity of 10mln tons.
The plants are expected to be built nearby the Mediterranean port of Ceyhan. The construction of 3 plants will enable an increase in the oil-refining capacity of Turkey up to 62mln tons per year from the current 27mln tons.
The SOCAR president, Rovnag Abdullayev, and the president of the Turcas, Erdal Aksoy, signed a protocol in December 2006 to establish a joint company. The purpose of the establishment of SOCAR Ceyhan, Turkey, the import and wholesale of natural gas, as well as the participation of Turcas in the exploration and development of the oil field in the Caspian Sea.
The main goal is to put a large oil-refining plant in Ceyhan within 4 years with an annual capacity of 20mln tons. Some 51% of the initial investments will belong to Azerbaijan and 49% to Turkey.
The oil products to be produced by SOCAR
SOCAR also has intentions to participate in the contest to privatize the largest chemical company in Turkey PETKIM. Turkey has backed SOCAR to acquire control of the enterprise.