Azernews.Az

By Aynur Jafarova

The Petkim Petrochemical Complex and SOCAR Turkey Enerji A.S. have signed a contract for a period of 20 years on purchase of raw materials from the Star refinery of Azerbaijan's state energy company SOCAR.

Petkim will annually purchase 270,000 tons of mixed xylene and 1.6 million tons of naphtha from the Star refinery, the company reported on May 27.

On March 30, 2012 SOCAR Turkey Enerji A.S. and SOCAR International DMCC OGG acquired 10.32 percent stake in Petkim, increasing their share to 61.32 percent. Some 38.68 percent of the stake is in free float on the Istanbul Stock Exchange.

Star refinery, with an annual capacity of 10 million tons, will be capable of refining oil grades such as Azeri Light, Kirkuk, and Urals. The oil refinery is planned to be commissioned in 2018.

Some 16 billion cubic meters of gas will be produced in the Shah Deniz Stage 2 development and exported to energy markets. The figure will be increased by one billion cubic meters per year.

Estimated at $5.5 billion, the refinery is mostly intended to create a resource base for the chemical company Petkim Holding. It will contribute significantly to the region's and country's economy by creating job opportunities and increasing competitiveness.

Currently, 60 percent share in the Star refinery is owned by Rafineri Holding A.S., and 40 percent - SOCAR.