SOCAR, Sberbank establish joint venture
By Mirsaid Ibrahimzade
The Azerbaijani state oil company SOCAR’s expansion strategy, which is main course of strategic development of the company, is aimed at the diversification of SOCAR's assets in foreign markets.
SOCAR and Russia’s Sberbank have established a joint venture for oil refining at the Antipinsky Oil Refinery, Russian media reported.
It is expected that the joint venture, where SOCAR owns 60 percent, will conduct processing works at the refinery while it is in a state of bankruptcy.
According to the message, it is possible that fields in Orenburg Province of Russia will be developed by the joint venture.
It is also noted that SOCAR wants to start processing at the Antipinsky Oil Refinery by July of this year. It is planned that the joint venture will buy oil from large oil companies, in particular from Lukoil and Surgutneftegaz.
In April this year, Russia's Sberbank received 100 percent in Cyprus’ Vikay Industrial, which owns 80 percent of Antipinsky Oil Refinery, while the remaining 20 percent of the shares belong to other legal entities and individuals.
Three weeks later, the management of the company filed a lawsuit to declare Antipinsky Oil Refinery bankrupt. Its total debt to banks is estimated at $5 billion.
Earlier, CEO and chairman of the executive board of Sberbank Herman Gref stated that the bank is continuing negotiations with potential investors on the sale of the refinery. SOCAR is a key contender for the purchase of the refinery’s shares, but the final decision has not yet been made.
The state oil company SOCAR is one of the world's 50 largest oil companies. SOCAR's mission is to ensure the energy security of the country. Established in 1992, SOCAR aimed at 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 refinery 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. The company has a significant position in a number of regional and international energy projects.
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Mirsaid Ibrahimzade is AzerNews’ staff journalist, follow him on Twitter: @MirsaidIbrahim1
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