Socar Promises to Continue Investment in Turkey

Azerbaijan state oil company Socar has rushed to assure the Turkish government that it will continue with all its major projects and planned investments after the failed military coup of July 15.

The company delegation led by the head of Socar’s investment department and the chair of Socar Turkey Energy, Vagif Aliev met Turkey’s minister of the economy  Nihat Zeybekci in Ankara. “Highlighting the projects implemented by Socar  in Turkey it was reported that all investment projects are on schedule.…The latest events in Turkey had no impact on the  Socar’s  projects”, the company said in a statement.  

Zeybekci praised the company as one of the largest investors in Turkey and said its projects had a big impact on the economy. 

According to Aliev,  Socar has been implementing several projects in Turkey with total cost above $18bn, including some that will meet the energy needs of  Europe.

Socar officials said that a large container port on the Aegean coast will be launched soon, as it is planning to put into operation the Star oil refinery in Izmir in 2018. So far, the company has invested about $844mn, sources in the Azerbaijan state oil fund  told NGE. The sovereign wealth fund is providing the state’s share in the project.

Nihat Zeybekci (Credit: Socar)

Building work on the Trans Anatolian pipeline (Tanap) to bring gas from the Shah Deniz-2 field in the Caspian to Europe has not experienced any problems relating to the recent political development in Turkey, the operating  company said.

At 1,800 km, the Tanap pipeline is the longest section of the Southern Gas Corridor. "The project is moving forward according to the previously established schedule, there is no delay of the construction [of the pipeline]," it said.

However, there are some concerns about project investment as Azerbaijan and Turkey have applied for loans from international financial institutions (IFI). Tanap cost estimates is  around $9.2bn, of which more than half is planned to come from IFI.  

“The recent political situation in Turkey has increased investments risks; two international agencies have lowered the country credit rating level. It could have a negative impact for attracting loans for Tanap,” a local analyst said.

S&P Global Ratings and Fitch have recently announced lowering Turkey’s sovereign credit rating with negative outlook.

Kama Mustafayeva