$4 billion has spent to STAR refinery project so far

Baku. 16 July. REPORT.AZ/ 70% of works in the STAR refinery of the State Oil Company of Azerbaijan Republic (SOCAR), being under construction at the Petkim peninsula in Turkish city of Izmir, Aliaga. The total project cost is $5.6 billion.

Report informs, Head of the SOCAR’s Investment Department Vagif Aliyev told Turkish Hürriyet daily.

According to him, so far $4 billion invested in the refinery.

V.Aliyev noted that after privatization of Petkim Petrokimya Holding A.Ş. in 2008, besides cost of privatization, the holding company are invested $100 million each year. He also noted that total investment in Turkey, including the Trans-Anatolian pipeline (TANAP), will amount to $20 billion.

Notably, foundation of STAR refinery was laid on October 25, 2011 by the President of Azerbaijan Ilham Aliyev and President of Turkey Recep Tayyip Erdoğan. The plant's capacity will be $10 million crude oil per year. The plant will be put into operation on March 2018.

At the auction on May 30, 2008, SOCAR/Turcas Enerji A.Ş. acquired 51% stake in Petkim Holding for $2.04 billion. On March 30, 2012 Socar Turkey Enerji A.Ş and SOCAR International DMCC OGG have privatized further 10.32% stake in Petkim Petrochemical Holding. Another 5% of shares purchased on the stock exchange. In addition, acquired share (15%) may be bought and sold depending on market conditions. SOCAR management has announced that the company will never reduce the holding share below 51%.