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Market value of SOCAR Turkey Energy, a subsidiary of the State Oil Company of Azerbaijan (SOCAR) in Turkey, has reached $11 billion said SOCAR Turkey Energy CEO Zaur Gahramanov, Turkish media reported.
Goldman Sachs bought 13 percent share in SOCAR Turkey Energy for $1.3 billion in August 2015.
“Today, the company’s value is around $11 billion owing to the recent investments. SOCAR Turkey’s share in SOCAR constitutes 35 percent,” he said.
He noted that the company’s market value will increase even further with the implementation of the new petrochemical project.
SOCAR started investing in Turkey by purchasing 51 percent share in Petkim for over $2 billion in 2008. Petkim Petrochemical complex, a subsidiary of SOCAR in Turkey, produces plastic packages, fabrics, detergents, and is the sole Turkish manufacturer of such products, a quarter of which is exported. The complex includes 14 factories producing 20 different types of products.
STAR is the biggest investment made by private sector in Turkey. Star Oil Refinery that is the first Turkey-specific Industrial Zone opened in October 2018. Refinery will supply Petkim with raw materials. SOCAR Turkey Energy A.S. earlier reported that STAR will reduce Turkey’s annual deficit by about $1.5 billion. STAR refinery will meet more than 25 percent of the processed oil products need of Turkey upon its startup. Certified with the first investment incentive granted by Turkey, STAR Refinery will eventually reduce the foreign-dependency of the country.
SOCAR’s investments, including Petlim, Petkim, STAR Refinery and TANAP, currently reach $14.2 billion.
SOCAR is one of the world’s 50 largest oil companies aimed at ensuring the energy security of Azerbaijan. SOCAR is the sole producer of petroleum products in Azerbaijan owning over 370 filling stations in Georgia, Ukraine, Romania and Switzerland.
SOCAR carries out its activity in Turkey through SOCAR Turkey. So far, SOCAR Turkey has invested over $14 billion in the Turkish economy. Meanwhile, 5,000 people work in the company, while the export potential reaches $ 3 billion.
Earlier, BP and SOCAR Turkey signed an agreement to evaluate the creation of a joint venture that would build and operate a world-scale petrochemicals complex in Turkey.
The start of construction of a new petrochemical complex SOCAR in Turkey is scheduled for the second half of 2019. The enterprise is expected to be commissioned at the end of 2022.
The facility would produce 1.250 million tons per annum (tpa) of purified terephthalic acid (PTA), 840,000 tpa paraxylene (PX) and 340,000 tpa benzene. The investment cost of the joint project will be approximately $1.5-2 billion.
The enterprise will be created in the Special Industrial Zone on the Aliaga Peninsula, where the STAR oil refinery and Petkim petrochemical complex also operate today, owned by SOCAR Turkey.
SOCAR Turkey Energy continues to boost its economy and industry with strategic investments, moving forward rapidly every year to become Turkey’s largest industry group.
In addition, a third partner will join the project of the new petrochemical complex, which the State Oil Company of Azerbaijan (SOCAR) plans to implement jointly with BP in Turkey, Gahramanov said.
He noted that a new financial institution will become a new partner, whose share in the project will be 10-15 percent.
The final investment decision will be made before the end of this year, and the complex will be commissioned by the end of 2022.
According to the head of SOCAR Turkey, the investment value of the new petrochemical complex will amount to $ 1.8 billion.
“Thanks to the project, Turkey’s current deficit will be reduced by $ 5-6 billion. The project will increase our share in the Turkish petrochemical market, while imports of petrochemical products to Turkey will decrease, thereby helping to reduce the current deficit. We are working to achieve this goals in all our projects in Turkey, “said the head of SOCAR Turkey.
By Mirsaid Ibrahimzade