Petkim petrochemical complex of Azerbaijan’s state oil company SOCAR in Turkey has announced the extension of the payment period for the share in STAR Oil Refinery, Trend reports with reference to Turkish media.
Petkim reached a deal with SOCAR Turkey in 2018 to get 18 percent indirect share in STAR Refinery and agreed to pay $720 million in three installments by the end of June 2021.
"However, the payment period has been extended till January 3, 2022 due to the consequences of the COVID-19 pandemic and the negative market developments,” said Petkim.
Star Refinery, with investment value of $6.3 billion came on stream in October 2018. Around $3.3 billion of the project’s cost was covered by loans. The total investment in Star Refinery is expected to stand at $7 billion.
The annual processing capacity of Star Refinery is 10 million tons. It meets around 25 percent of Turkey’s refined oil products. The refinery is able to process 214,000 barrels of crude oil per day.
Petkim is the first and the sole integrated petrochemical facility in Turkey. It is the largest exporter in the Aegean region. Petkim’s production capacity is 3.6 million tons per year. The petrochemical complex produces around 60 different types of products and exports to 78 countries. The complex meets about 20 percent of Turkey’s demand for petrochemical products.