In his presentation to the journalists, SOCAR Turkey CEO Elchin Ibadov reminded that SOCAR started its operations in Turkey in 2008 with an investment of approximately 2 billion dollars, owning 51 percent of Petkim.

Emphasizing that no dividends have been paid from Petkim to Azerbaijan since then, Ibadov said, “All profits made by Petkim have been used for investment in Turkey again. After SOCAR invested 2 billion dollars in Petkim and owned 51 percent of it. We have invested another 1.6 billion dollars.” used the phrase.

Referring to the fact that Petkim is the only integrated petrochemical producer in Turkey today, Ibadov said, “We meet 12 percent of the demand in Turkey. We used to meet it at a higher rate, but of course, as the market grows and demand increases, our share in this sense is around 12 percent. ” he said.

Pointing out that the most successful refinery and petrochemical facilities in the world are those that work in integration with each other, Ibadov stated that they saw this need and built the STAR Refinery, which started in 2014 and was completed in 2018.

Underlining that this refinery went down in history as the largest single point investment in the history of the Republic of Turkey at that time, with an investment value of $6.7 billion, Ibadov said, “Today, STAR Refinery manufactures, processes and produces 11 million tons of crude oil and produces refining products. It meets approximately 25 percent of Turkey’s petroleum product needs. Of course, this is not enough, but we are proud to contribute close to 1 billion dollars to Turkey’s current account deficit every year, as we significantly reduce the foreign dependency of the market.” made its assessment.

Noting that last year was the most successful period in financial and operational terms, Ibadov said:

“The capacity utilization rate of STAR was 113 percent in 2022. There is a standard capacity utilization rate in the refineries, but you can produce beyond the refinery’s capacity with effective planning, value creation initiatives, and high-level engineering solutions without making any additional investment. For example, we have a standard capacity of 10 million tons. but we were able to produce 11.3 million tons, which was a capacity utilization rate of 113 percent.”

Reminding that Petkim will receive an additional 6 percent share from the STAR Refinery by paying an additional $240 million in 2023, Ibadov said that this amount will make Petkim’s cash situation difficult, especially in the period when the petrochemical industry is not in good shape and interest rates are high. and SOCAR stated that they agreed.

Regarding the question of when Petkim will benefit from the profitability of the STAR Refinery, Ibadov gave the following information:

“Petkim paid the installments corresponding to 12 percent. Completion of the share transfer until October 2023 is officially subject to certain permission, approval and documentation. After that process is completed by October, Petkim now owns 12 percent of STAR. will be effective and 12 percent of STAR’s profit will appear as a plus in Petkim’s profit and loss statement every year with the accounting technique.”

“As of 2023, the amount of gas entering Turkey from TANAP is approximately 21 billion cubic meters”

Stating that TANAP is one of the projects that contributed the most to Turkey’s goals of becoming an energy corridor, Ibadov mentioned that studies on expanding TANAP in the future and transmitting more natural gas to Europe via Turkey continue.

Elchin Ibadov stated that these studies offer great opportunities for Turkey to become a natural gas hub, adding that as of 2023, the amount of gas entering Turkey through TANAP has reached approximately 21 billion cubic meters, and the amount of gas sent to Europe via Turkey has reached approximately 22 billion cubic meters. shared.

Reminding that the cooperation between the two companies covers a wide area regarding the joint venture company established by BOTAŞ and SOCAR, Ibadov said, “This cooperation is not only about natural gas transit. We are constantly thinking about what can be done together, especially in terms of natural gas infrastructure investments. Discussions are currently ongoing between SOCAR and BOTAŞ senior management, the Republic of Turkey and the Azerbaijani state officials regarding the scope of the works. said.

“Our total investment in Turkey has reached 18 billion dollars”

Anar Mammadov, Head of SOCAR Turkey Refinery and Petrochemical Business Unit, emphasized that SOCAR Turkey’s total investments in Turkey have reached 18 billion dollars.

Noting that the design capacity of the STAR Refinery is calculated as 10 million tons, Mammadov said, “We were able to operate the STAR Refinery with 113 percent capacity in 2022, but our potential is higher. During the test phase, we saw that we could increase the capacity of STAR up to 118 percent without any investment. If we work non-stop for 365 days, we can produce 118 percent of crude oil, that is, close to 12 thousand tons.” he said.

Mammadov also stated that in 2024, there will be a large planned production stop that takes place every 4 years, “By investing in this stop time, we will add 3 percent to this production volume and as a result, the production volume and capacity of STAR will increase to 121 percent. This is a very important result for our industry.” used the phrase.

“Potential in Turkey in petrochemistry is really big”

Mammadov informed that the cooperation planned by bp and SOCAR Turkey for a new petrochemical investment has been suspended and continued his words as follows:

“We were planning to implement this project as a partnership with bp. But later on, bp decided to leave the petrochemical sector completely and sold all its assets. This was the first factor affecting the investment. Secondly, after the pandemic started, the balances all over the world changed and in these changing conditions, we We suspended this project. But that doesn’t mean that this project will not progress. Of course, depending on the conjuncture, this can be re-evaluated. The potential in petrochemistry in Turkey is really great. Not only in Turkey, but in our sector, the field with the greatest potential in the manufacturing sector is petrochemicals. This issue, of course, is always on our agenda.”

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