Azernews.Az

By Gulgiz Dadashova

Total revenues of SOCAR Turkey Enerji, the Turkish division of the Azerbaijani state energy company SOCAR, and its subsidiaries, will exceed $15 billion.

Kenan Yavuz, the head of SOCAR Turkey Enerji and a board member of Petkim Petrochemical Holding, said that taking into account the total income, SOCAR Turkey Enerji is the third company operating in this sector in Turkey after Koc and Sabancı Holding.

SOCAR is one of the world's most well-established oil companies, active in Turkey since May 30, 2008.

SOCAR Turkey Enerji aims to reduce the dependence on foreign goods and exports in Turkey by providing high value-added products made inside the country.

Yavuz went on to say that Azerbaijan is Turkey's biggest investor for the volume of investments that SOCAR will make in the projects which are being implemented in Turkey, along with the Trans-Anatolian gas pipeline project (TANAP). The company's total investments will hit $17 billion.

Yavuz noted that SOCAR Turkey Enerji holds the second position in the industrial production sector in Turkey, and is ahead of Sabancı Holding.

Currently, SOCAR owns the petrochemical complex Petkim Petrokimya Holding in Turkey, a container terminal, and is building an oil refinery with capacity of 10 million tons a year.

The company plans to begin distribution of gas and oil products in the domestic market of the neighboring country, as well as build a new gas pipeline, TANAP, jointly with Turkish partners.

Referring to the construction of a container port with the capacity of 1.5 million TEU, Yavuz said this is one of the rapidly implemented projects in Turkey.

He said that the first phase of the port's construction will be completed in 2015 and the second phase in 2016. Some $400 million will be invested in the construction of the port. The investment process is expected to be completed in 2014.

In February, Petkim and Dutch company APM Terminals -- one of the world's leading port operators -- agreed on the management of the container port construction.

Petkim will invest in the construction of the port and its infrastructure, while APM Terminals will invest in vehicles and equipment.

The capacity will exceed that of the new Alsancak port in Izmir by about 50 percent during APM Terminals' management of the port. APM Terminals will have the right to manage the port for 28 years.

Yavuz said further that another project being rapidly realized is the construction of the Star refinery. The construction of the refinery, worth $5.5 billion, is to be completed in late 2017.

He said that currently four refineries operate in Turkey and all of them were constructed by the state.

"The difference between our refineries is that investments have been made in one point in the region," Yavuz said.

The total capacity of the Star refinery will be 10 million tons and petroleum product output will be aimed at meeting the needs of Petkim and the Turkish market.

"Of this volume, 3 million tons will be directed to the consumption of Petkim and the rest will be sold to other countries," he said.

He noted that the project on the construction of a power plant also runs smootly.

The Star refinery will be capable of refining such oil grades as Azeri Light, Kirkuk and Urals. Annual production at the refinery will equal 1.6 million tons of naphtha. The facility is scheduled for commissioning in 2015.

Along with naphtha, the Star refinery will produce 5.9 million tons of diesel fuel with ultra-low sulphur, 500 tons of aviation fuel, 630,000 tons of petroleum coke, 240,000 tons of liquefied petroleum gas, 415,000 tons of mixed xylene, 75,000 tons of olefin liquefied petroleum gas and 145,000 tons of sulphur.

Azerbaijan's total investments in Turkey in the coming years are estimated at $21 billion. The number of companies with Azerbaijani capital in Turkey reached 1,100 by the end of 2012.

According to the 2012 results, trade turnover between the two countries amounted to $2.12 billion. Turkey was the biggest foreign trade partner of Azerbaijan for the volume of imports ($1.520 billion) with a share of 15.75 percent in Azerbaijani imports.