The State Oil Company of Azerbaijan (SOCAR) is planning to increase its investments in Turkey. To that end, the company has recently announced that it will set up a second Petkim plant. The Azeri energy giant is planning to invest $18 billion in Turkey by 2020.
SOCAR Turkey Chairman Vagif Aliyev said that they will produce solutions to imports with their "chemical park" investment.
According to Hürriyet daily's report, SOCAR Turkey Chairman Aliyev said that they are working on a new investment for petrochemical products on Petkim Peninsula, as well as holding talks with the government that lean towards the issue, adding that the new plant could be a second Petkim.
Noting that the amount of investment is not clear but will be around $3 billion, Aliyev stated that there is no room for a new capacity increase at Petkim. "The new investment should be near Petkim. We are currently engaging in talks with the government to evaluate this within the scope of strategic investment. This will give us a great advantage," he added.
Aliyev also said that SOCAR is planning to take part in the fuel distribution sector. "We were interested in purchasing Petrol Ofisi in order to take part in the distribution sector. However, we withdrew due to the price. We can either set up a company or make another purchase," Aliyev said.
"We regard Turkey as our own home," SOCAR Turkey CEO Zaur Gahramanov also said, stressing that they will invest $18 billion in Turkey by 2020, and that $11 billion has been invested so far. "The Star Refinery will be completed in 2018. In addition, the wind energy plant that we established in Petkim will meet 30 percent of Aliağa's energy," he continued. "There are 14 power plants in operation. Investment is high but ecological. This is SOCAR's first wind power plant anywhere in the world."
SOCAR, which acquired Petkim for about $2 billion in 2008, has invested $100 million each subsequent year. The amount of these investments has reached $730 million so far. SOCAR Turkey Chairman Aliyev highlighted the fact that they have not stopped investing in Petkim for a day, recalling that they paid a great deal of money while purchasing it. "However, we have always regarded this investment as strategic, completely in accordance with the need. We have invested in Turkey for nine years. We are not making money now, but we are investing in the future," he concluded.