SOCAR plans to buy oil refinery in Europe
Azerbaijan`s state oil company, SOCAR, is considering the purchase
of assets of an oil refinery in Europe, its president, Rovnag
Abdullayev, has said. He did not, however, say where the refinery
is located.
Abdullayev said all investments by the state energy firm outside Azerbaijan are made using loans borrowed from international financial institutions and SOCAR`s funds have not been used for this refinery purchase.
He went on to say that SOCAR, which is part of the alliance holding 51% of stock in Turkey`s largest petrochemicals group, Petkim Petrokimya Holding, that also includes Turcas Petrol and Injaz Projects companies, intends to soon double the supplies of raw materials to the company`s enterprises. For this purpose, construction of a new refinery, with a capacity of 10 million tons, is due to begin next year.
Furthermore, by 2015, SOCAR plans to boost the volume of Petkim`s revenues to $4 billion, from the current $1.9 billion. Presently, the output capacity of the holding is 3.2m tons, but the figure will reach 6.3 m tons by 2015.
Turkey`s demand for petrochemicals currently makes up $6.1bn, and its needs are bound to rise by 11-12% each year. Petkim meets about 25% of domestic demand, while the rest is imported.
The SOCAR-Turcas Petrol-Injaz Projects alliance won a tender for the sale of Petkim`s controlling package of shares after bidding $2.04 billion for the acquisition. The alliance`s investment in the company will allow it to reduce imports of petrochemicals to Turkey from the current 70-75% to 30%.
In November 2007, the Turkish body in charge of privatization approved selling 51 percent of Petkim`s stock to the alliance. This became the largest foreign economic project in which Azerbaijani companies participate in.
Petkim is one of the largest petrochemical enterprises in the region, with a strategic importance for Turkey. The company, built by the oil group TPAO in 1962, is referred to as "the heart of petrochemical industry" in Turkey. Its products include plastic packaging, fabrics and detergents.
Abdullayev said all investments by the state energy firm outside Azerbaijan are made using loans borrowed from international financial institutions and SOCAR`s funds have not been used for this refinery purchase.
He went on to say that SOCAR, which is part of the alliance holding 51% of stock in Turkey`s largest petrochemicals group, Petkim Petrokimya Holding, that also includes Turcas Petrol and Injaz Projects companies, intends to soon double the supplies of raw materials to the company`s enterprises. For this purpose, construction of a new refinery, with a capacity of 10 million tons, is due to begin next year.
Furthermore, by 2015, SOCAR plans to boost the volume of Petkim`s revenues to $4 billion, from the current $1.9 billion. Presently, the output capacity of the holding is 3.2m tons, but the figure will reach 6.3 m tons by 2015.
Turkey`s demand for petrochemicals currently makes up $6.1bn, and its needs are bound to rise by 11-12% each year. Petkim meets about 25% of domestic demand, while the rest is imported.
The SOCAR-Turcas Petrol-Injaz Projects alliance won a tender for the sale of Petkim`s controlling package of shares after bidding $2.04 billion for the acquisition. The alliance`s investment in the company will allow it to reduce imports of petrochemicals to Turkey from the current 70-75% to 30%.
In November 2007, the Turkish body in charge of privatization approved selling 51 percent of Petkim`s stock to the alliance. This became the largest foreign economic project in which Azerbaijani companies participate in.
Petkim is one of the largest petrochemical enterprises in the region, with a strategic importance for Turkey. The company, built by the oil group TPAO in 1962, is referred to as "the heart of petrochemical industry" in Turkey. Its products include plastic packaging, fabrics and detergents.
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