SOCAR, the largest direct foreign investor in Turkey, launched its $6.3-billion SOCAR Turkey Aegean Refinery - STAR Refinery, which will provide a large portion of oil products demand in the local market with 10 million tons of annual oil processing capacity. In coming years, SOCAR's new refinery will be a solid contribution to the economies of Azerbaijan and Turkey.
SOCAR’s $6.3-billion STAR Refinery, one of the largest investment projects in Turkey, was inaugurated on October 19, 2018 in a ceremony held in Aliaga, Izmir. Alongside the refinery SOCAR has also launched its other projects - Petlim Container Terminal, Petkim Wind Power Plant and its regional head office. President Ilham Aliyev of the Republic of Azerbaijan, President Recep Tayyip Erdoğan of the Republic of Turkey, government officials of the two countries and numerous guests have attended the inauguration ceremony.
Following the growth in production, over 3 billion cubic meters of gas have been supplied to gas storage facilities
SOCAR has managed to stabilize oil production and increase its natural gas production significantly by increasing the drilling capacity in the third quarter of 2018. During the quarter, SOCAR production amounted to 1.9 million tons of oil and 1.67 billion cubic meters of natural gas , increasing 1.5% and 11% respectively compared to the previous year's figures. Overall, 29 million tons of oil and 22 billion cubic meters of natural gas were produced in Azerbaijan in the first nine months of 2018. Compared to a year earlier, the country's oil production grew by 0.8% and gas production by 4,5%.
During the quarter, SOCAR has carried out more than 42 thousand meters of drilling work, surpassing the last year’s same period figures by 43%. In addition to increased drilling capacity, old and redundant wells were repaired and reactivated, allowing SOCAR to stabilize its production.
SOCAR and BGP Inc., a subsidiary of China National Petroleum Corporation (CNPC) have signed a Foundation Agreement on the establishment of a joint venture.
Rovnag Abdullayev, President of SOCAR, Khoshbakht Yusifzadeh, First Vice President of SOCAR, Bahram Huseynov, Vice President for Geology and Geophysics at SOCAR, Gou Liang, President of BGP Inc., as well as other high-ranking officials from both companies attended the signing ceremony, which took place in SOCAR Tower. The contract was signed by Rovnag Abdullayev, President of SOCAR and Gou Liang, President of BGP Inc. The newly established joint venture will carry out joint seismic exploration in the Republic of Azerbaijan and the Caspian Sea, creating new opportunities for exchange of experience between the professionals of the two companies.
Rovnag Abdullayev shared his opinion on the signed contract: “Today, SOCAR is working on modern technologies in all areas and testing different and alternative methods to explore new oil and gas fields and stabilize production levels. Establishing a joint venture with China's BGP for geological and geophysical studies creates an alternative perspective in this area and a fertile ground for sharing experiences that will be useful for professionals of both countries”.
According to a report from Ernst & Young, SOCAR is one of the world's leading state-owned enterprises not listed on a stock exchange.
Recent monitoring shows that it is impossible to improve the performance of enterprises without effective corporate governance system. In 2016, two regulations were signed by the President of the Republic of Azerbaijan to strengthen the corporate governance system of state enterprises in the Republic of Azerbaijan. For this purpose, in the same year, Ernst & Young, one of the world's leading audit companies, was involved in preparing a report on competency assessment of corporate governance at SOCAR, where it has investigated the SOCAR’s internal documents and conducted relevant surveys.
The project was implemented in order to assess the current level of competency of the corporate governance system at SOCAR, to focus on desirable indicators, and to identify strengths and potential development areas for each component of corporate governance.
As a result of the interviews and review of internal documents, it was concluded that SOCAR gives high priority to the principles of corporate governance and the company’s overall corporate governance has been rated as ''STRONG'' at 81 percent of the maximum result. This indicates that SOCAR takes a leading position among the enterprises not listed on a stock exchange, and is in the forefront of the local state-owned enterprises. SOCAR has not only prepared documents on corporate governance components but also held functional procedures.
The State Oil Company of the Azerbaijan Republic (SOCAR) is involved in exploring oil and gas fields, producing, processing, and transporting oil, gas, and gas condensate.read more
When investors and credit organizations wish to cooperate with any company, first of all the international rating of the company in discussion is reviewed.read more