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DMEA NEWS IN BRIEF DMEA

COMPANIES He stressed they are initially considering petrochemical facility investment in Turkey’s
nearby energy-rich regions instead of far-off western province of Izmir and has been in
SOCAR, TPAO mull joint countries. talks with other companies, including British
Petroleum (BP). The facility reportedly has an
“The common view of the presidents on
investment in nearby this issue is an instruction for us,” he noted. estimated cost of $1.8 billion.
Yet, the investment was delayed to the last
“SOCAR and TPAO have been co-
regions investing since 1994. We want to continue quarter of last year, before the plan was put on
hold after BP last June sold its petrochemical
that, of course. But the country is not certain
Turkish and Azerbaijani energy companies yet, we may have assessments. The third business to privately owned rival Ineos for $5
are planning joint investments in nearby country in question could be a place in close billion.
regions, an official said Wednesday, a day after geography. Not Singapore or Africa, for Aliyev said they are now in talks with Ineos
President Recep Tayyip Erdogan signaled such example,” he said. and other investors.
a move. The Azerbaijani giant is one of the largest The decision on the investment will
“The country we invest in is not clear yet. foreign investors in Turkey. Its investments in become clear in 2022, Aliyev said.
But it will not be far, we may have assessments the country have reached around $16.5 billion “We certainly do not look warmly
for close geography,” Vagif Aliyev, deputy (TL 141 billion) so far, Aliyev said. at the long-term postponement of our
chairperson of the board of directors at The amount will have reached around Mercury project, which will be our second
Azerbaijan’s state energy company SOCAR, $19.5 billion upon completion of all ongoing petrochemical investment in Turkey. We will
told reporters. projects of its Turkey subsidiary, SOCAR make this investment. We can do this with an
Aliyev also signaled potential cooperation Turkey. experienced partner in petrochemicals or with
with the Turkish Petroleum Corporation The company began investing in Turkey a financing partner,” he noted.
(TPAO) on the natural gas reserves that after it acquired the country’s leading “The realisation of other petrochemical
Turkey has discovered in the Black Sea. petrochemical company Petkim in 2008 for investments on the agenda of Turkey does
Erdogan Tuesday held a meeting with his $2 billion. not affect our commitment to the Mercury
Azerbaijani counterpart Ilham Aliyev, after In addition to Petkim, SOCAR Turkey’s project.”
which he said talks were held on potential investments include STAR Refinery, the DAILY SABAH
cooperation between Turkey’s state energy Trans-Anatolian Natural Gas Pipeline Project
company and SOCAR in other countries. (TANAP) that transports Caspian Sea gas
His remarks came during a visit to through Turkey and onward to Europe, and FUELS
the symbolic city of Shusha in Nagorno- Petlim, the largest container port on the
Karabakh, which was liberated from country’s Aegean Sea coast. Chevron expands reach in
Armenian occupation last November after 28 STAR Refinery became fully operational
years. in 2019 after it was launched in October 2018 Africa with Akwa Group
“We are pleased with the investments of with an investment of $6.3 billion. TANAP
Azerbaijani companies in Turkey, especially was implemented through an investment of Chevron Marine Lubricants will boost its
SOCAR,” Erdogan said. $6.5 billion. presence in African ports after extending its
“We also discussed the investments of Also addressing the meeting, SOCAR joint venture with Akwa Group. Chevron
SOCAR and Turkish Petroleum in third Turkey CEO Zaur Gahramanov said they have is now an equal partner in Afriquia
countries. In the coming period, we will an ultimate goal to combine Petkim and STAR Lubrifiants, with plans to extend the blending,
further improve the scope of our trade and Refinery, adding that the process could take a distribution, and marketing business beyond
economic cooperation,” the president noted. couple of years. Morocco to markets in sub-Saharan Africa.
SOCAR and TPAO have worked together Gahramanov said they are thinking of an The enhanced agreement enables the
on various projects since 1994. Aliyev initial public offering (IPO) after the merger. joint venture to manufacture Chevron’s
said there are opportunities to utilise this Second petrochemical investment premium products locally for the first time,
experience in third countries. SOCAR also has plans for another including Chevron Marine Lubricants’

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