Baku, September 1, AZERTAC
TEKFEN Insaat ve Tesisat A.S. will implement electro-mechanical works in construction of SOCAR’s STAR Oil Refinery in the territory of Petkim Petrokimya Holding AS, in the Aliaga region of Turkey on the Aegean coast. Relevant letter of intention was signed with the TSGI JV, Turkey’s Kamuyu Aydınlatma Platformu (KAP) said. The project is to complete within 17 months.
The groundbreaking ceremony of one of the major investment projects in Turkey “SOCAR Turkey Ege” Oil Refinery Complex (“STAR” Oil Refinery Complex) took place on the 25th of October 2011, with the participation of the President of the Republic of Azerbaijan Ilham Aliyev and the President of Turkey Recep Tayyip Erdogan.
“STAR” Oil Refinery will be located on the west and economically strong part of Turkey, in Aliaga port close to Izmir, where the refined oil products will be mostly directed towards meeting the domestic demands of Izmir and Istanbul. The construction of the refinery close to the big petrochemical complex Petkim will create a vertical integration and bring high efficiency.
The refinery will have the capacity of processing 10 million tons of crude oil and SOCAR will be the main supplier of raw materials. The refinery will produce approximately 1.6 million tons of naphtha, which will in return decrease Turkey’s petrochemical industry’s dependence on foreign countries, reduce the current account deficit of diesel and jet fuel and will act as a source of raw materials for petrochemical products.
Fund finances the project in accordance with the Decree #2698 of the President of the Republic of Azerbaijan dated February 4, 2013 “On additional measures for supporting the Azerbaijan in “SOCAR Turkey Aegean” Oil Refinery (STAR) project”. According to the Decree a joint stock company (Company) was founded with the statutory capital of USD 1.9 billion and financing of the 40% of its shares was assigned to SOFAZ.