SOCAR halts oil processing for third countries in Alexandria

The SOCAR trading, subsidiary of SOCAR (State Oil Company of the
Azerbaijani Republic), has stopped processing and sales of oil of
third countries in Egypt due to the political crisis in the country, a
spokesman for SOCAR Trading said, 1news.az reports, citing the
Korrespondent website.

SOCAR was transporting 1-1.5 million barrels of oil per month to the
oil refinery in Midor and selling oil products the EGPC (Egyptian
General Petroleum Corporation) since May 2010.

The processing cooperation scheme was realized based on credit risks,
involving banks.

Azerbaijani officials and European banks cooperating with them plan
series of meetings in Egypt to clarify the situation.

The spokesman said that they are satisfied with the work in Egypt and
wanted to participate in down-stream projects. SOCAR would like to
continue long-term cooperation in Egypt.

He clarified that the refinery in Alexandria had stopped operating. A
portion of SOCAR Trading oil is under processing. The refinery
processes heavier oil than Azeri Light.

Egypt produces approximately 30 million tons of oil and processes up
to 36 million tons.