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                                   31 May 2019                                                                    

SOCAR and Tekfen sign MoU to construct Urea Production Facility

                               
                               

Rovnag Abdullayev, President of SOCAR met with a delegation of Turkey’s Tekfen Holding led by Murat Gigin, Chairman of the Board and Cahit Oklap, President of the Group Companies. Rovnag Abdullayev and Murat Gigin signed a Memorandum of Understanding on the construction of a new urea production facility in Azerbaijan. Based on experience gained during the construction of existing urea plant, one of the SOCAR’s successful projects, SOCAR is considering the construction of a new production facility in Sumgayit with a daily capacity of 1,200 tons of ammonia and 2,000 tons of urea. The memorandum also envisages a cooperation including the marketing of the products of the existing and new production facilities.

In this context, a Working Group will be formed in the next phase and efforts will be made to establish the final agreement in order to determine the details of the following issues:

• Tekfen Contracting Group companies’ possible participation in the construction of these units on EPC (engineering, procurement and construction-assembly) basis,

• The effectiveness of prospects for Tekfen’s subsidiary Toros Tarım to conduct marketing, sales and distribution of the products manufactured in the new facilities by the usage of its extensive dealer network in Turkish market and to develop value added new products as well as marketing of those in different regions of the world,

• Toros Tarım’s possible role in the marketing, sales and distribution of the products manufactured in the existing facilities until the new facility becomes operational,

• SOCAR and Tekfen as partner shareholders in the new Production Facility.

Today SOCAR operates in various sectors of oil and gas industry as an integrated company. In recent years, the company has significantly expanded its operations in petro- and gas chemical industry, constructed and commissioned new polymer and urea production facilities in Azerbaijan. As the latest links in the SOCAR’s value chain, SOCAR Polymer and SOCAR Carbamide plants acquire crude materials from other facilities of the company and create additional value from this synergy. SOCAR continues to explore new investment opportunities with the purpose of increasing the revenues of Azerbaijan and creating new jobs in the country.