Azernews.Az

BAKU – Azerbaijan's state oil company SOCAR has suspended the refining and sale of oil in Egypt, because of continuing tension in the country.

SOCAR subsidiary SOCAR Trading had been transporting 1-1.5 million barrels of oil per month to Midor Refinery in Alexandria since May 2010, a spokesman told Reuters. The oil products produced there were sold to the Egyptian General Petroleum Corporation.

The spokesman said the process relied on credit risk and therefore it involved the banks, which were expected to review the funding risk for these operations. "We have all taken time-out and the continuation of work depends on a reappraisal of the financial risks," the official said.

He also said that Azerbaijani representatives and European bank officials would hold a series of meetings in Egypt to assess the situation.

"We were very pleased with the work in Egypt and wanted to get into downstream projects. We were interested in the existing infrastructure in Egypt. We hope that the long-term cooperation that started last year will continue, as there is a very good market for oil products and other prospects in the oil sector for us," the SOCAR spokesman said.

He made clear that Midor Refinery itself was still operating. "The oil refinery in Alexandria has not suspended its work. It is processing SOCAR Trading oil now. Not Azeri Light, but heavier, more sulfurous oil produced in Arab countries is being transported to the refinery."

Mass protests calling for the president and government to resign have gripped Egypt for the past week. More than 100 people have been killed in the violence.