About 4 bln USD invested in STAR refinery so far

Baku. 28 November. REPORT.AZ/ 3,9 bln USD has been invested up to date in construction of the STAR refinery, built by the State Oil Company of Azerbaijan Republic (SOCAR) in Petkim Peninsula, Aliağa region of Izmir city, Turkey.

Report informs citing the Turkish media, Director General of STAR refinery Ibrahim Palaz said.

"Total cost of the project is 5.7 bln USD, of which 3.3 bln USD loan attracted from 23 banks. The loan agreement was timely and on appropriate conditions. Now the loan would cost 1.5% higher that means additional 450 mln USD. STAR plant financing in terms of volume and duration of the loan is the largest and long-term project ever( loan agreement considered for 15-18 years)", said the head of enterprise.

Speaking about the implemented works, I.Palaz said work is continuing on schedule. He added that 78.3% of the work has been carried out within the framework of the project: "A large part of the construction work has been completed. 99.5% of engineering works, 95.5% - procurement works, and 57.5% of the construction work have already been completed."

The project's manager said that the plant will be commissioned in April 2018: The plant's capacity will be $10 million crude oil per year. The plant will reduce import of diesel, jet fuel, naphtha and petroleum coke in large volume. Turkey's total diesel imports (in 2015 - 12 mln. Tons) will be cut halfway across the country and consumption will be reduced by 25%. The factory will meet Turkey's naphtha imports. Generally, volume of imports will be reduced by 2.5 bln USD."

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 to produce 4.7 million tons of diesel, 1.6 million tons of jet fuel, 320,000 tons of LPG, 1.6 million tons of naphtha, 690,000 tons of oil coke, 159,000 tons of sulfur and other products. Mainly "Ural", "Light" and Kirkuk oil types will be processed in the refinery.