SOCAR and BP Plan A New Joint Venture In Petrochemistry Industry

- BP and SOCAR Turkey evaluate the probability of a joint venture to establish and operate a world class facility for PTA, P-Xylene and aromatic products. 

- The facility is planned to be established in SOCAR Turkey's Private Industrial Zone in Aliaga. STAR Refinery and Petkim facilities, which have recently started operations,  are also located in the said zone.

- Integration with SOCAR facilities and infrastructure is expected to reduce the project costs significantly.

- The facility will utilize leading patented state-of-the art industrial technology of BP. 

- It will strengthen the long-term collaboration of BP and SOCAR.

BP and SOCAR Turkey today have signed a ‘Heads of Agreement’ (HoA) to evaluate the probability of a joint venture to establish and operate a world-class petrochemical complex in Turkey.  

To be established in Aliaga, the facility will produce 1,25 million tones of purified terephthalic acid (PTA), 840.000 tones of P-Xylene (PX) and 340.000 tones of benzene per year. PTA is utilized in manufacturing of polyester, which serves as a raw material of a wide variety of products including food and drink containers, packaging materials, fabrics, films and other consumer and industry applications.

After signing the Hoa, BP and SOCAR Turkey are expected to proceed with design works for the facility. The design will allow integrated use of raw materials from new STAR Refinery and Petkim, which are both owned by SOCAR Turkey and located in close vicinity of the facility projected to be established herein.

Vagif Aliyev, Chairman of the Board of Directors of SOCAR Turkey, remarked: “We entered the Turkish market in 2018 by acquisition of Petkim, and we have realized giant projects such as STAR Refinery, TANAP, Petlim Container Terminal and Petkim Wind Power Plant since that date. The area in Aliaga, where all projects of SOCAR Turkey are located, has made a history by being granted with the status of the First Private Industrial Zone of Turkey in recent months.  The fact that the new facility will be situated in the close vicinity of infrastructure and raw material resources obtained from other facilities of SOCAR will provide a great advantage in terms of competition. By benefiting from the opportunities provided by our big refinery and petrochemical facility built in Aliaga, which is a gateway to world markets through Aegean Sea of Turkey, we will keep contributing to the economies of two brother countries, Turkey and Azerbaijan.”

Luis Sierra, CEO for BP's Global Aromatics unit, said: “If taken forward, this would be the largest integrated PTA, PX and aromatics complex in the Western Hemisphere and BP’s first major new aromatics platform since our Zhuhai site in China opened nearly 20 years ago. Through the combination of BP’s leading proprietary technology and integration to be ensured by new refinery of SOCAR, we will have an outstanding platform to serve growing polyester packaging and textile industry of Turkey. We want to utilize both BP's and SOCAR's power in the explorations to be performed for establishment of this highly competitive facility"

Carrying on works for a final decision on a possible joint venture in 2019, BP and SOCAR are expected to commission the new facility in 2023 in case that such decision is taken.

Patented PTA technology recently developed by BP provides huge savings on both capital and operating costs when compared to other PTA technologies. Utilizing the energy more efficiently, this technology requires less water than similar ones on the market and enables generation of less solid waste.

BP and SOCAR act with the perception of a long-lasting partnership in a wide variety of oil and gas production and transportation projects in Azerbaijan and Turkey, as well as a wider geographic region including Shah Deniz-2 gas project in Azerbaijan, which began production in early this year and exports natural gas to Turkey and other countries.

Zaur Gahramanov, CEO of SOCAR Turkey, said: “This new proposed investment offers a ‘win-win’ situation for both SOCAR and Turkey.  In this way, our share in Turkish petrochemical market will increase, and it will contribute to the decrease of foreign trade deficit and thereby reduce importation of these products to Turkey. We are working in all of our projects in Turkey in line with this objective.”

Mick Stump, president of BP Turkey, said: “Such a big, potential direct investment would be our first equity investment, which we would make in petrochemistry industry of Turkey, the country where BP has been existing for more than 100 years. Turkey serves as a bridge between the East and West, and consumers and producers, and fast-growing economy of Turkey opens the door to attractive investment opportunities.”

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