Turkish holding Petkim, belonging to SOCAR, will become independent of imported naphtha

The petrochemical complex Petkim will export products worth $5 billion by 2023. This has been reported by the head of SOCAR Turkey Energy and board member of the petrochemical complex Petkim, Kenan Yavuz. "Petkim will import only the oil. All the other energy products will be provided by the complex itself," he said.Furthermore, he added that the complex Petkim has already received the first certificate from Turkey for providing tax incentives in the framework of stimulating investment in the country, which is an important incentive for the complex, Trend reports.

About $6 billion will be allocated for the construction of a new refinery in Turkey. Some of this amount will be the shareholders' equity (30%, or about $1.8 billion), and the remaining funds will be drawn from bank loans.

This refinery will have to provide raw materials to the petrochemical complex Petkim, in which SOCAR (State Oil Company of Azerbaijan) has equity participation.

The refinery will produce 1.66 million tons of naphtha annually, which Petkim uses as the primary feedstock. To date, nearly 80% of Petkim's need for naphtha has been provided by imports. The introduction of the new refinery will reduce this dependence to zero.

This project is granted exemption from payment of value added tax and customs duties. Turkey will also pay the minimum amount of insurance to the refinery's employees within 7 years, and provide $50 million (5% of the total) for help in the payment of interest.