Azernews.Az

By Leman Mammadova

By expanding its activities and increasing revenues, SOCAR Turkey contributes to the further growth in economies of Azerbaijan and Turkey.

"We fully trust Turkey’s economic strength and political stability," SOCAR Turkey Energy CEO Zaur Gahramanov said at a meeting with journalists, together with the head of Investment Office of the Presidency of the Republic of Turkey Arda Ermut, Report informs citing Turkish media.

Gahramanov underlined that SOCAR contributes to the development of Turkey's economy.

“Turkey opens its doors for investments. SOCAR operates in the markets of 15-16 countries. However, nowhere are there such laws and incentives as in Turkey. Turkey has the highest potential in the region. In 2008, we entered the Turkish market through the privatization of Petkim and invested $15 billion in over 11 years. In 2018, STAR Oil Refinery and Trans-Anatolian Pipeline (TANAP) projects, were opened which is very important for both Turkey and Azerbaijan's economies,” he said.

“In addition to these two giant projects, we have a container terminal and a wind power projects. We will continue our investments by laying the foundation for a new petrochemical plant this year. We fully rely on Turkey's economic power and political independence. We want to strengthen our relations by attaching economic cooperation to the eternal friendship between Turkey and Azerbaijan,” Gahramanov added.

Azerbaijani state oil company SOCAR carries out its activity in Turkey through SOCAR Turkey. SOCAR Turkey’s market value is around $11 billion owing to the recent investments. SOCAR Turkey’s share in SOCAR constitutes 35 percent. 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. By selling 1.303 tons of naphtha produced at STAR refinery to Petkim, SOCAR Turkey Energy completed the integration of the refinery and the petrochemical complex.

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.

Moreover,Turkish Gubre Fabrikalari TAS (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.

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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