News Archive

25 September 2019

SOCAR increases storage capacity of the STAR refinery

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TOTAL CAPACITY TO REACH 2.5 MILLION CUBIC METERS

SOCAR Turkey held a ceremony for two new facilities in Special Industrial Zone of Aliaga. While inaugurating one of the facilities that will increase the STAR Refinery’s storage capacity for crude oil and finished products, it laid foundation of another one.


STAR Refinery, the SOCAR Turkey’s subsidiary with 10 million tons of oil refining capacity a year, continues new investments for increasing its storage capacity. While SOCAR Storage Terminal Tank Expansion Project - one of the projects carried out in this framework – was inaugurated, the foundation of STAR Refinery Crude Oil and Oil Product Tanks Project was laid. Rovnag Abdullayev, President of SOCAR, Vagif Aliyev, Chair of the Board of SOCAR Turkey, Zaur Gahramanov, CEO of SOCAR Turkey, Mesut Ilter, General Director of STAR Refinery, Anar Mammadov, General Director of Petkim, and executives of the project contractors attended the ceremony. With the new investments, the storage capacity used by SOCAR Turkey and its customers will reach to 2.5 million cubic meters.

Speaking at the ceremony, SOCAR President Rovnag Abdullayev stated that SOCAR continues its investments in the oil, natural gas and petrochemical fields: “Last year we were here for the inauguration ceremony of the STAR Refinery. We are happy to be back in Aliaga for our new projects within a year. Our petrochemical investments constitutes an important pillar of our operations, creating a long-term income source by bringing added value to the Azerbaijan economy, as well as making a big contribution to the region and Turkey.” In this context, Petkim generated TL 47.2 billion revenue and more than TL 4 billion net profit during the last decade. Furthermore, 4 million tons of oil were refined in the STAR Refinery, which will reach 8 million tons by the end of this year. Abdullayev underlined that the increase of storage capacity will also contribute to the productivity, commercial flexibility and production safety of STAR Refinery. SOCAR President closed his speech with these words: “Centuries-old friendship between Azerbaijan and Turkey has made great progress in the economic sphere with the will and support of the presidents of the two countries. We look forward to extending our cooperation and strengthening our economic ties in the future.”

ONE OF TURKEY’S FIVE LARGEST STORAGE TERMINALS
SOCAR Storage Terminal Tank Expansion Project inaugurated at the ceremony, includes 12 tanks with a total capacity of 335,000 cubic meters. Currently the terminal is the largest one in the Aegean region. With the new facilities, which will further increase the capacity, it will be one of Turkey’s five largest terminals. The facility will store diesel, gasoline, jet fuel and reformates, construction of which started in September 2017. The next stage will be STAR Refinery Crude Oil and Oil Products Tanks Project, started with the groundbreaking ceremony. This project will increase the refinery’s storage capacity and enhance operational flexibility. The project that will provide additional 342,000 cubic meters of storage capacity is scheduled to finish in 2021.

21 September 2019

ACG celebrates 25th year of its journey to success

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The Azeri-Chirag-Gunashli (ACG) partnership today celebrated the 25th anniversary of the ACG production sharing agreement, signed on 20 September 1994 between the Government of Azerbaijan and eleven international companies representing eight countries. This contract, which later became known as the “Contract of the Century”, was extended in September 2017 until the end of 2049.

SOCAR president Rovnag Abdullayev said: “Today we celebrate the 25th anniversary of the PSA on the Azeri, Chirag and Deepwater Gunashli fields, known as the “Contract of the Century”. This contract has played a unique role in the history of independent Azerbaijan. Although shorter than a moment from historical perspective, these 25 years passed in the atmosphere of strenuous day-to-day work. Looking back at this track of success and the magnificence of the projects we’ve accomplished, we’re filled with a sense of pride.

In the last 25 years, the annual oil production has grown fourfold in our country, recovering all branches of economy. Some essential technologies and innovative solutions were applied in the Azerbaijani sector of the Caspian Sea, in order to develop the deepwater fields. Around $265 billion were invested in total in the economy of Azerbaijan during these years, whilst the amount of investment in the oil and gas industry totaled $101 billion with around $36 billion invested by the ACG partners alone in the development of these fields.”



Gary Jones, BP’s Regional President for Azerbaijan, Georgia and Turkey, said: “The 25th anniversary marks an important milestone in the new history of Azerbaijan’s oil and gas industry. It is a historical date for SOCAR, BP and all other partners in the ACG contract.



“What has been achieved by this contract since 1994 is extraordinary. It is with this contract that the massive developments, turning Azerbaijan once again into one of the world’s major energy suppliers and transforming the country’s economy, started. One reason for this success is the extraordinary partnership built here within ACG. And for that we want to pay tribute to President Aliyev, his government and SOCAR. Together we have demonstrated what partnership can deliver.”

These are some of ACG’s key facts:

• From the start of production in November 1997 till the end of 2Q 2019, ACG produced about 488 million tonnes (more than 3.6 billion barrels) of oil.

• Around 3.3 billion barrels of ACG oil have been exported to world markets via the Baku-Tbilisi-Ceyhan pipeline.

• Since 2006, 4,300 tankers loaded with ACG oil have been lifted from the Ceyhan terminal.

• More than 44 billion cubic meters of associated gas were delivered to Azerbaijan since the start of production till the end of 2Q 2019.

• Capital expenditure in the ACG project by the end of 2Q 2019 was $36 billion.

• From the start of ACG project in 1994 till the end of 2Q 2019, the ACG partners spent around $84 million on sustainable development projects in Azerbaijan.

• On 14 September 2017, the ACG PSA was extended until end of 2049.

• Following PSA extension, ACG’s $6-billion next development project-Azeri Central East (ACE) was sanctioned 19 April 2019 and is currently at the execute stage with first oil expected in 2023.

• As part of the ACG project-one platform (Chirag 1) was renovated and seven new platforms were built, one of the largest oil and gas storage and processing terminals of the world was constructed, a sophisticated web of subsea pipelines was laid at the bottom of the Caspian Sea.

• At the end of the 2Q of 2019, 124 oil wells were producing, while 44 wells were used for water and for gas injection.

• ACG has had excellent safety record and, as an environmentally sound project, it has conducted around 140 Environmental Impact Assessments and 266 offshore, onshore and near-shore monitoring surveys.