SOCAR AND BP PLANS TO ESTABLISH A NEW VENTURE IN TURKEY

The facility is planned to be established in Aliağa and it will produce 1,25 million tons of purified terephthalic acid (PTA), 840.000 tons of P-Xylene (PX) and 340.000 tons of benzene each year. PTA is used for manufacturing polyester which is one of the raw materials used for various products like food and beverage containers, packaging materials, fabric, film and other consumer and industrial applications.

BP and SOCAR Turkey are expected to begin the design of the facility following the signature of the HoA. The design will ensure integrated use of raw materials coming from the new STAR Refinery and Petkim, which are both located near the planned facility and which both belong to SOCAR Turkey.

"We Shall Continue to Contribute the Economies of Both Turkey and Azerbaijan"

SOCAR Turkey Chairman Vagif Aliyev said: "We've entered the Turkish market in 2008 by purchasing Petkim and ever since, we've established major projects like the STAR Refinery, TANAP, Petkim Container Terminal and Petkim Wind Power Plant. All the projects of SOCAR Turkey are located at the land in Aliağa and recently, the land has received the title of Turkey's first Private Industrial Zone and made history. The fact that the new facility will be located very close to the raw materials acquired from other SOCAR facilities and infrastructure sources, will provide a great competitive edge. We shall continue to take advantage of our large refinery and petrochemical facilities constructed at Aliağa, Turkey's gateway from the Aegean Coast to the global markets and we shall continue to contribute to the economies of the two sister countries, Turkey and Azerbaijan."

"This Will Be Its First Major Investment in The Aromatic Products Segment"

BP's Global Aromatic Products Unit CEO Luis Sierra 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. "

BP and SOCAR expect to work towards a potential final investment decision on a potential joint venture in 2019, which could result in start-up of the new plant in 2023.

"It Will Help Reduce the Foreign Trade Deficit"

In his statement, SOCAR Turkey CEO Zaur Gahramanov said: "This proposed new investment is a ‘win-win’ situation for both SOCAR and Turkey. It will not only increase our share in Turkey’s petrochemical markets, but it will also help to reduce Turkey’s imports of these products, hence reducing the foreign trade deficit. All of our projects in Turkey are planned with this goal in mind."

“It Would Be Our First Equity Investment in Petrochemicals in Turkey"

BP Turkey President Mick Stump said: "This potential major new direct investment would be our first equity investment in petrochemicals in Turkey, a country where BP has now been present for over 100 years.  Turkey operates as a bridging country between the East and West, and between producers and consumers, and its fast-growing economy offers attractive investment opportunities."