Azernews.Az

Azerbaijan will supply crude oil for processing at a refinery of the Azerbaijani state oil company Socar in Kyrgyzstan by swap-scheme, president of the Association of Kyrgyzstan Oil Traders Zhumakadyr Akeneev told Trend news agency.

``The refinery is to be built in northern Kyrgyzstan, and Azerbaijan will supply 2 million tons of oil to Kazakhstan in the Caspian Sea in Aktau, Atyrau and Kyrgyzstan would receive oil from Kazakhstan via the Shymkent pipeline in return,`` Akeneev said. Socar is thus expanding the geographical scope of its activities towards Central Asia, Akeneev said.

``According to our estimates, the cost of fuel which will be produced at the refinery will be very low, and perhaps, if the plant is working, the problem of diversification of refined petroleum products in Kyrgyzstan will be solved,`` he said.

The agreement on the construction of the oil refinery was reached in January at a meeting of Kyrgyz President Almazbek Atambayev and Socar President Rovnag Abdullayev.

The oil refinery is due to be commissioned in late 2013. The cost of the facility is estimated at over $100 million.