Industry and Energy

Home page

Industry and Energy

Financing agreement on construction of STAR Refinery signed in Istanbul

06 June 2014 13:10 (UTC +04:00)

APA-Economics Istanbul correspondent reports that addressing the signing ceremony, President of the State Oil Company of Azerbaijan Republic (SOCAR) Rovnag Abdullayev noted that following the discussions that lasted two and a half years on the financing of the refinery, which foundation was laid down by Azerbaijani President Ilham Aliyev and Turkish Prime Minister Recep Tayyip Erdogan in 2011, the largest international financial institutions agreed to provide financial support for the construction of the refinery: “Today, the signing ceremony of the project worth $3.3b has been held. $120b will be invested in Turkey’s oil sector till 2018. $20b falls on Azerbaijan. This is the most long-term and open-ended loan in the history of Turkey. The agreement has no article on the completion date of the project”.

Later on, SOCAR Executive Director Shahmar Movsumov made a speech at the event and expressed their support for the project.

In his speech, Azerbaijan’s Minister of Energy Natig Aliyev called this event ‘a new victory’.

“The largest financial institutions in Europe and the world support the project. Petkim with an annual turnover of $30b will become the largest industrial company in Turkey”, Natig Aliyev said.

Azerbaijan’s Minister of Economy and Industry Shahin Mustafayev noted that 153 companies are involved in Azerbaijan’s state investment worth $10.4b as contractors and subcontractors.

In his speech, Turkish Minister of Science, Industry and Technology Fikri IÅŸÄ±k said that the signing ceremony is very important not only for Turkey and Azerbaijan, but also for Europe.

Turkish Minister of Energy and Natural Resources Taner Yildiz expressed satisfaction with the fact that the share of the Turkish TPAO in Shah Deniz-2 project increased from 9 to 19 percent, the share pf Botas in TANAP - from 20 to 30 percent.

“Our revenues last year amounted to $265m. We are pleased to receive financial support in amount of $3.3b from Turkish Garanti Bank together with 23 financial institutions. After STAR refinery starts operating, 10m tonnes - petrochemical production is forecast per year, which will help to ease our burden in many areas”, - said Yildiz.