Winner of tender for SOCAR oil refinery construction in Turkey determined
The winner of a tender for the construction of an oil refinery of Azerbaijan's state oil company SOCAR in Turkey has been determined, head of SOCAR-Turkey Enerji A.Ş. Kenan Yavuz said in an interview with Bloomberg HT TV channel, Trend news agency reported.
He said the winner of the tender is the consortium, which includes Korean, Italian, Spanish and Japanese companies. An agreement with these companies will be signed in January 2013.
"About $200 million have been already invested in the construction of the oil refinery. The consortium plans to end investments within four years," Yavuz said.
He also said Turkey needs to build two more oil refineries. "After the construction of this oil refinery, Turkey should think about the construction of the third oil refinery, and after 2020 - even the fourth."
Up to $6 billion will be directed for the construction of the oil refinery which will be financed partly through shareholders (30 per cent), and the rest through bank loans, a SOCAR senior representative said earlier.
The main goal of this enterprise is providing Petkim petrochemical complex, in which SOCAR has equity participation, with raw materials.
The annual production of naphtha which is used as the primary Petkim raw material will be 1.66 million tons at the STAR plant. Currently, more than 80 per cent of Petkim's naphtha needs are met through imports whose dependence will be reduced to zero after the opening of the new refinery.
Exemption from value added tax and customs duties is provided within the project.
Turkey will also pay the minimum amount of insurance to employees of refinery during seven years and will allocate $50 million (five percent of the total) as an aid in the payment of interest.