The STAR refinery of the State Oil Company of Azerbaijan (SOCAR) will be commissioned in late 2017, said a message posted on the official website of SOCAR.
It was earlier reported that the plant will be put into operation in Q1 of 2018.
“The commissioning of STAR refinery in late 2017 will allow to reduce the shortage in Turkey’s current account at least by $2.5 billion,” said the message.
The total cost of the project is $5.7 billion and some $3.29 billion of this amount will be provided with the loans, according to the message.
Under the decree of Azerbaijani President Ilham Aliyev on additional measures to support the participation of the Azerbaijani side in the construction of the Star refinery in Turkey, SOCAR Turkey Yatirim joint-stock company was established with an authorized capital of $1.9 billion (with 40 percent share of the state).
Under the decree, the government’s share (40 percent or $760 million) in the joint-stock company will be financed by the State Oil Fund of Azerbaijan.
Moreover, SOCAR signed loan agreements totaling $3.29 billion with around 23 financial institutions in the Turkish city of Istanbul on June 6, as part of constructing a new Star refinery in Turkey. The loan package consists of the funds of export-import banks (Spain, Italy, Japan, US and the Republic of Korea), some 16 foreign trade and investment banks, as well as one local bank.
The annual naphtha production volume, used by Petkim as the main raw material, will hit 1.66 million metric tons at the Star refinery. Along with naphtha, the new oil refinery will produce diesel fuel with ultra-low sulfur to the amount of 5.95 million metric tons, aviation kerosene – 500,000 metric tons, reformate – 500,000 metric tons, petroleum coke – 630,000 metric tons, liquefied gas – 240,000 metric tons, mixed xylene – 415,000 metric tons, olefin LPG – 75,000 metric tons and 145,000 metric tons of sulfur. The refinery will not produce petrol and fuel oil.
It is planned to refine Azeri Light, Kerkuk and Urals oil at the plant.
