Financing secured for Turkish refinery

This story was updated on June 3 to correct information related to ownership.

Star Refinery AS, Istanbul, has secured additional funding to proceed with construction of the planned 214,000-b/d Socar Turkey Aegean Refinery (Star) in Aliaga, Turkey (OGJ Online, Dec. 14, 2010).

SOCAR Turkey Energy AS, the Turkish arm of State Oil Co. of Azerbaijan Republic, on May 30 signed loan agreements amounting to $3.29 billion with 23 export credit agencies, commercial banks, and development banks to finance the Star refinery project, according to a notice posted the same day to Turkey’s Public Disclosure Platform.

Previously, the State Oil Fund of the Republic of Azerbaijan (Sofaz), between January and December 2013, allotted $474 million to construction-related costs for the Star refining complex (OGJ Online, Jan. 28, 2014), which followed the US Export-Import Bank’s authorization of a $640.7 million direct loan to finance export of US equipment for the construction of the complex (OGJ Online, Dec. 6, 2013).

SOCAR Turkey owns 51% of Petkim, operator of a petrochemical complex with which the new refinery will be integrated (OGJ Online, Dec. 6, 2013).

The planned refinery will include a 66,000-b/d hydrocracker, a 40,000-b/d delayed coker, and a 28,000-b/d continuous catalytic regeneration reformer.

In addition to a hydrogen unit able to produce 3.84 million cu m/day, the complex also will have hydrotreating capacities of 20,000 b/d for naphtha, 26,000 b/d for kerosine, and 68,000 b/d for diesel.

The refinery, which will cost a total of about $5.6 billion, is scheduled to be commissioned in 2018, according to a May 29 from Vinson & Elkins LLP, who served as international legal advisor to Star Refinery on the signing of the finance documents for the project, including the common terms agreement and all the loan facility agreements.

The full notice to proceed with construction activities was due to the EPC contractor—a consortium of companies comprised of Spain’s Tecnicas Reunidas, Italy’s Saipem, Korea’s GS, and Japan’s Itochu—following the May 29 announcement, Vinson & Elkins said.

Related Articles

INTERNATIONAL BRIEFS

01/01/1990 WESTCOAST ENERGY INC., Vancouver, B.C., agreed to buy the utilities and propane business of Inter-City Gas Corp. (ICG), Winnipeg, Man., for $720 mi...

HOW INDEXES HAVE RISEN

01/01/1990 Continuing a trend starting in 1983, the Nelson-Farrar refinery construction index rose slowly, from 1106.2 in January 1987, to 1184.1 in December ...

OGJ NEWSLETTER

01/01/1990 Will oil price stability dominate the 1990s? Analyst Philip Verleger thinks so. Using a measure of market concentration the U.S. government uses t...

DOE PRESSES CLEAN COAL PROGRAM

01/01/1990 The U.S. Department of Energy has chosen 13 more clean coal technology (CCT) projects in its third round of competition. If private sponsors and DO...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected