Azernews.Az

By Leman Mammadova

Cooperation between Azerbaijan and Turkey continues to expand through SOCAR Turkey Energy, Azerbaijan's state oil company, which boosts Turkey’s economy and industry with strategic investments, moving forward rapidly every year to become Turkey's largest industry group.

Turkish Gubre Fabrikalari TAS (Gubretas) company, engaged in production and marketing of chemical fertilizers and SOCAR Turkey Energy, an affiliate of Azerbaijan’s state oil company SOCAR in Turkey, will create a joint venture (JV), Trend reports with reference to Gubretas.

Gubretas and SOCAR Turkey Energy signed a letter of intent to create a joint venture with a 50 percent share each to import carbamide from SOCAR petrochemical plants and from other manufacturers in the neighboring geography and sell this carbamide in Turkey’s domestic market and in foreign markets.

SOCAR told Trend that the memorandum has been signed and it is considered as an initial agreement.

“The commercial details will be disclosed after signing the final agreement with the partner company,” said the state oil company.

Gubre Fabrikalari TAS (Gubretas) is a Turkey-based company engaged in the production and marketing of chemical fertilizers, including solid fertilizers, liquid fertilizers, powder-based fertilizers and organic fertilizers. It also provides soil analysis services to farmers, advising on the appropriate fertilizer to be used.

SOCAR, one of the world's 50 largest oil companies, established in 1992 to manage Azerbaijan's oil resources on the basis of a single state policy, to improve the management structure of the oil industry and to ensure the development of fuel and energy complex.

Three production divisions, one oil refineries and one gas processing plant, a deep water platform fabrication yard, two trusts, one institution, and 23 subdivisions are operating as corporate entities under SOCAR. SOCAR has a significant position in a number of regional and international energy projects.

Currently, SOCAR is the only producer of oil products in the country, and also operates more than 370 filling stations in Switzerland, Georgia, Romania and Ukraine.

SOCAR carries out its activity in Turkey through SOCAR Turkey. So far, SOCAR Turkey has invested over $14 billion in the Turkish economy. Meanwhile, 5,000 people work in the company, while the export potential reaches $3 billion. The company has a controlling stake (51 percent) in the Petkim petrochemical complex on the Aliaga peninsula since 2008 and owns the STAR oil refinery.

Star Oil Refinery that is the first Turkey-specific Industrial Zone opened in October 2018. Refinery will supply Petkim with raw materials. Star has already launched the sale of its first products on January 31, 2019.

The total investment of the project is $ 6.3 billion, of which 90 percent has been already invested. By the end of 2021, Star's total capacity will be increased. In the end, the investment will total $7 billion. STAR has the first investment incentive granted by Turkey.

Recently, SOCAR has acquired EWE Turkey Holding, owned by the German energy company EWE AG. Earlier, EWE AG told Trend that the decision on the possible sale of its assets in Turkey is related to the optimization of the company's activity.

SOCAR will start construction of a new petrochemical complex in Turkey in 2019.The enterprise is expected to be commissioned at the end of 2022.

SOCAR Turkey also plans to increase energy production at the Petkim wind power plant as well as expand network of filling stations in Turkey.

Investments of the SOCAR in Turkey will reach $19.5 billion in the future.

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Leman Mammadova is AzerNews’ staff journalist, follow her on Twitter: @leman_888

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