New plant important not only for SOCAR and BP, but also for Turkey

Work is underway to build a new petrochemical plant for BP and Socar Turkey in Aliaga city in Izmir Province, Chief External Affairs Officer at SOCAR Turkey Energy Murat LeCompte said in an interview with Trend.

The chief external affairs officer reminded that an agreement on the construction of a new petrochemical plant was signed between SOCAR and BP in late 2018.

"According to the agreement, both companies, each with a 50-percent-share in the new project, decided to launch its implementation," LeCompte said. "The preliminary engineering and design work has been carried out since the moment of the signing of the agreement. Today, these operations are underway. The operations are planned to be completed till late 2019."

"The work on the territory will begin in 2020," the chief external affairs officer said. "Afterwards, other work, including the preparation of a production sharing agreement, will be carried out. Then financing issue must be resolved."

"In particular, the issue of financing through the company's own funds or a loan will be discussed," LeCompte said. "The exact amount of investments in the project is unknown. This issue will be resolved next year after the final decision on investments is made."

"The amount worth $1.8 billion was voiced during the preliminary discussions," the chief external affairs officer said. "This figure may increase or decrease while making the final decision."

"If the final investment decision can be made in 2020, then the foundation of the future plant will be laid that year," LeCompte said. "Proceeding from the fact that the construction will last for 3-4 years, the plant can be put into operation in 2023-2024."

The chief external affairs officer added that the new petrochemical plant will bring great benefits.

"This project is important not only for SOCAR and BP, but also for Turkey," LeCompte added. "Presently, Turkey imports 80 percent of the petrochemical products, spending $11.5 billion a year. After putting a new plant into operation, this figure may be reduced to $5.5 billion. Therefore, this project will make a great contribution to the Turkish economy."