Zaman – The State Oil Company of Azerbaijan Republic (SOCAR) will inject USD 800 million of funding to its multibillion dollar refinery project in Aliaga, Izmir on Turkey’s Aegean coast, according to Socar Turkey head speaking about the company’s 2013 plans. SOCAR & Turcas Aegean Refinery, also known as the Star Refinery, will significantly reduce Turkey’s costly petroleum product imports when it goes into operation by 2016.
“The USD 800 million to be channeled to the Star Refinery project will be from SOCAR’s own equity...” SOCAR Turkey CEO Kenan Yavuz said, adding that a financing deal with a consortium of banks was expected to be signed within a month. “SOCAR will provide USD 1.9 billion out of its own equity for the USD 4 billion project…” Yavuz said. The company has invested USD 200 million so far for the facility that will process 10 million tons of crude oil annually, producing jet fuel, diesel, petroleum coke, LPG, naphtha and other oil derivatives.
The majority owner of Turkey’s largest petrochemical complex, Petkim, SOCAR is one of the largest single foreign investors in Turkey in recent years. For the realization of the refinery project the Azeri company will be benefitting from Turkey’s new investment incentive system, introduced last summer, which provides major advantages to strategic projects that help cut down imports.
SOCAR is also the majority partner of the Trans-Anatolian gas pipeline (TANAP) project which will carry Azeri gas across Turkey to Europe.