Russia, Turkey may build oil refinery

The countries will set up a working group to undertake an analysis into “the possibility of constructing a refinery and joint marketing of oil products, including in third countries,” the document said.

The countries will also encourage establishment of joint oil companies in Russia and Turkey, as well as in third countries to engage in exploration and exploitation of hydrocarbon deposits.

The parties will facilitate the supply of oil and oil products from Russia to Turkey in the amounts set by commercial contracts with Russian oil companies.

On 6 August, prime ministers of Russia and Turkey Vladimir Putin and Recep Tayyip Erdogan signed a protocol on oil cooperation which deals with the establishment of a Russia-Turkey working group which would study the possibility of Russia's participation in the project to build Samsun-Ceyhan pipeline.

The working group will calculate economic component of the Samsun-Ceyhan pipeline project so to that to understand possible volume of transportation of Russian oil. Other countries, transporting oil through the strait, are not expected to be involved yet.

The pipeline will run from the Black Sea port of Samsun to Ceyhan on the Mediterranean coast. It will help transport oil to the Black Sea bypassing congested Bosporus and Dardanelles straits. The project is implemented by Turkish holding Calik Energy and Italian Eni. The pipeline is scheduled to transport 60 to 70 million tons of oil per year.

/Trend Capital/