Oil fund of azerbaijan to control 40% of star oil refinery in turkey

State Oil Fund of Azerbaijan (SOFAZ) will control 40% of assets of Star oil refinery in Izmir, Turkey, which is owned by a daughter company of State Oil Company of Azerbaijan (SOCAR), reads information posted on the web site of the European Bank for Reconstruction and Development (EBRD).

According to this information, total cost of the project will be $5.1 billion. EBRD considers allotting a credit worth $150 million for the oil refinery construction and the remaining amount will be borrowed from other banks and export-credit agencies.

Star Rafinery A.S. joint venture has been created to build the oil refinery, 41.5% shares of which are owned by SOCAR Turkey, Turkish daughter company of SOCAR, 40% by SOFAZ and 18.5% by Turcas Petrol A.S.

On May 20, 2013 SOCAR Turkey signed the agreement with the consortium, which is going to build Star oil refinery in Izmir worth $4 billion. The consortium was comprised of Spanish Tecnicas Reunidas, Italian Saipem, South Korean GS Engineering & Construction and Japanese Itochu. The project will be put into operation 51 months after signing of the contract.

Turan’s correspondent was told in SOCAR that the Oil Fund will take part in the Star oil refinery project as a “passive player” funding only a certain art of SOCAR. In the future SOFAZ will get dividends from SOCAR’s profit.

Capacity of Star refining will be 10 million tons of oil a year.

According to the budget approved by SOFAZ for 2013, it is planned to spend 596.6 million AZN ($761 million at current rate) to fund Azerbaijan’s share (that time SOCAR, which owned 81.5% in the project) in construction of the oil refinery.—0--