Azerbaijan allocates $850M for refinery construction in Turkey

Azerbaijani State Oil Fund (SOFAZ) has allocated $844 million as of July 1, 2016, as part of the country’s financing the project of construction of a new oil refinery of Azerbaijan’s SOCAR in Turkey, SOFAZ told Trend.

In accordance with the decree of Azerbaijani President Ilham Aliyev on additional measures to support the participation of Azerbaijan in the construction of the Star refinery in Turkey, SOCAR Turkey Yatirim joint-stock company was established with the authorized capital of $1.9 billion and with 40 percent share held by the state, Trend News Agency reports.

Under the decree, the state share in the joint-stock company will be financed by using SOFAZ funds.

As much as $84 million has been allocated from SOFAZ for this project in H1 2016.

The total cost of the project for construction of SOCAR’s oil refinery in Turkey exceeds $5 billion.

The annual naphtha production volume, used by Petkim as the main raw material, will stand at 1.66 million tons at the Star refinery. Aside from naphtha, the new oil refinery will produce diesel fuel with ultra-low sulphur content in the amount of 5.95 million tons, aviation kerosene – 500,000 tons, reformate – 500,000 tons, petroleum coke – 630,000 tons, liquefied gas – 240,000 tons, mixed xylene – 415,000 tons, olefin LPG – 75,000 tons and 145,000 tons of sulfur.

The refinery will not produce gasoline and fuel oil.

The facility is planned to refine Azeri Light, Kerkuk and Urals oil.