Vagif Aliyev: Import of Star Refinery products to Azerbaijan is not considered

Baku. 11 January. REPORT.AZ/ Demand for import of oil products produced at Star Refinery, built by the State Oil Company of Azerbaijan Republic (SOCAR) in Petkim Peninsula, Aliağa region of Izmir city of Turkey, also to Azerbaijan is unlikely to occur.

Report informs referring to ANS, Vagif Aliyev Head of Investments Department of SOCAR said.

'If these products made at Aegean region are brought to Azerbaijani market, they will be sold at high price due to prime cost and transportation expenses. Therefore, as SOCAR, we do not consider bringing Star Refinery products to Azerbaijani market', Head of Investments Department said.

'SOCAR works on reconstruction of Heydar Aliyev Baku Oil Refinery in order to meet demands in Azerbaijani market', he said: 'Country's demand of petrol, which meets 'Euro-5' standard, is expected to be met by realization of this project.

Notably, SOCAR has began its activity in Turkey after 'Petkim Holding' privatization in 2008 and has been operating under name of 'SOCAR Turkey'.

Foundation of Star Refinery was laid down by Azerbaijani President Ilham Aliyev and Trukish President Recep Tayyip Erdoğan on October 25, 2011. Refining of 10 million tons of crude oil is planned in the plant within a year.

Currently, half of works has been completed at the plant. First production at the plant is scheduled to begin in March 2018.

Total investment cost of Star Refinery construction project is 5,6 billion USD. 2,4 billion  is financed by own resources of SOCAR, remaining 3,2 billion USD by banks. For this purpose, totally 3,2 billion USD funds provided from 23 foreign banks. Project, the biggest project financing of Turkish real sector with 18 years payment plan, is realized by consortium of the US, Japan, Korea, Spain and Italy 'Eximbank's.