Petkim's net profit grew more than 9 times in the 9 years up to 2017. As a result of the optimization measures taken last year, approximately $50 million was saved.
On March 30, SOCAR President Rovnag Abdullayev visited Petkim petrochemical complex and STAR Refinery to oversee the implementation of the projects in Aliaga, Turkey . The SOCAR Turkey Aegean Refinery (STAR) will be launched in September 2018. The senior executives held a meeting at the general office of the SOCAR’s branch companies in Aliaga to evaluate the current state of the company’s assets in Turkey and discuss future plans.
It was noted that the vast majority of over $48 million was saved last year as a result of the optimization of Petkim production processes and supply chain. Petkim came under SOCAR's control in 2008. Since then, Petkim’s net profit has increased ninefold and the value of its shares soared by 8.7 times.
At the meeting, SOCAR officials were informed that the construction work is very close to completion, with only 1% to go. The refinery will work in close cooperation with Petkim as a part of the same value chain. Production is forecast to commence in September 2018 and the capacity of the refinery is 10 million tons. Annually, it is expected to produce 4.8 million tons of diesel fuel, 1.6 million tons of aircraft fuel, 1.6 million tons of naphtha and other key products such as LNG, mixed xylene, HRON, oil coke and sulfur. A significant part of its products, mainly naphtha, will be used as raw materials by Petkim and support reducing overall costs. The production will be supplied mostly to the domestic market in Turkey with the remainder being exported. The project’s main target is the digitalization of the production processes this year.
''STAR Refinery will work closely with Petkim and supply this petrochemical complex within SOCAR with its essential raw - naphtha. STAR’s fuel products will be realized in the Turkish domestic market, which has a huge potential. Thus, besides bringing additional revenue to Azerbaijan, STAR Refinery will also offer new jobs in the fraternal country, replacing part of the imports with domestic production'', said Rovnag Abdullayev, SOCAR President.
SOCAR acquired a 51% controlling stake in Turkey’s Petkim petrochemical complex in 2008. The STAR Refinery aims to improve Petkim’s value chain. As an important part of the SOCAR’s new strategic development course, it will significantly contribute to the diversification of the company's processing and chemical assets.
This year, SOCAR is planning to launch three facilities in the chemical industry: SOCAR Polymer and SOCAR Carbamide in Azerbaijan, which will be integrated with other local facilities, and STAR Refinery in Turkey integrated with the Petkim complex.
• An innovative educational project to help national engineers smoothly step from university to business career
• Part of strong support for education and capacity-building - a key direction of SOCAR and BP’s social investment in Azerbaijan SOCAR’s Baku Higher Oil School and BP launched the “Business education for engineers” course which will be funded by BP in support of education and development of national engineers in Azerbaijan. The programme is designed for the 5th year undergraduate students of Baku Higher Oil School (BHOS) and will aim to provide extensive knowledge in management and business. This is in addition to the high quality engineering education and industrial experience of the prospective graduates and will enable them to integrate into the business environment more efficiently.
The course is expected to develop skills in the analysis and evaluation of complex business problems, and to cultivate a methodical approach to problem solving and decision making. In line with the aim, the curriculum of the course will consist of eight core modules: presentation and communication skills, project management, time management and efficiency, leadership, risk management, introduction to finance, budget and cost control, HR management fundamentals, and negotiation skills.
Rovnag Abdullayev, President of SOCAR said: “Today our partnership with BP enters a new phase. I’m sure that this project will prove itself valuable for our youth, helping them reach new levels of success. Baku Higher Oil School is one of SOCAR’s most successful projects. This university was founded by the decree of the President of Azerbaijan Mr. Ilham Aliyev and it already assumed leadership within its’ sector of education, setting a new standard and motivating other universities in the country to strive for higher achievements. That created an accelerating effect within the scope of transforming oil revenues into human capital, as ordered by the head of state.”
Gary Jones, BP’s Regional President for Azerbaijan, Georgia and Turkey, said: “This is an important project for BP as a company which has selected education as a key direction of its social investment in Azerbaijan. With this project, we intend to contribute to building the necessary management and business skills at the university stage. These are the skills that most graduates find challenging to build when they start their business career in modern organisations. Our practice also shows that in many cases it is not an easy step to take for university graduates, including engineers. We believe this course will equip the targeted undergraduate students with business management tools and techniques that will help them achieve smooth transition from university education to business career. This is also an opportunity for us to closely cooperate with SOCAR and BHOS helping the country develop high quality national engineers.”
Elmar Gasimov, Rector of Baku Higher Oil School said: “Since its establishment as an integral part of SOCAR, Baku Higher Oil School has been assigned with educating high level specialists, in accordance with modern standards. With the modern equipment, provided by SOCAR, and its international curriculum BHOS quickly managed to attract the interest of youth to technical subjects. Today the brightest minds of our nation are being educated here. Last year the lowest admission score was 662. This year our first graduates took leave. All of them found jobs in leading companies. Although SOCAR started this success story, other companies are also welcome to join. Today we’re building upon this success together with our partner BP. The new programme will help to integrate young engineers into modern business environment, paving the way for higher achievements.”
The duration of the project is 11 months (February -December 2018) with a total value of $180,000.
Notes to editors:
Over the past 25 years BP itself and together with its co-venturers have supported a large number of major social investment projects. These have included educational programmes, building skills and capabilities in local communities, improving access to social infrastructure in communities, supporting local enterprises through provision of access to finance and training, support for cultural legacy and sport, as well as technical assistance to public institutions.
In 2017, BP spent $2 million on sponsorship of social projects in Azerbaijan. In addition, last year BP together with its co-venturers in the Azeri-Chirag-Gunashli, Shan Deniz, Baku-Tbilisi-Ceyhan and South Caucasus Pipeline projects spent around $2.4 million in Azerbaijan on social investment projects.
SOCAR’s social expenses in Azerbaijan amounted to AZN 148M in 2016. Education and training programmes have a special position among corporate social responsibility initiatives, which are in line with the government strategy. Apart from founding the Baku Higher Oil School, SOCAR also supports a number of high level initiatives in the school education. Almost 100 thousand participated at SOCAR’s professional trainings. SOCAR’s domestic and foreign scholarship programmes aim to motivate students, while its annual paid summer internships are very popular among youth in Azerbaijan. SOCAR provided more then 100 young people from orphanages with professional trainings, jobs and accomodation, as part of a joint project with the Heydar Aliyev Foundation.