New head of “STEAS” about investments and possible dividends from projects in Turkey

The total volume of SOCAR investments in projects in Turkey over 15 years amounted to $18 billion, of which $10 billion directly into the Turkish economy. Elchin Ibadov, the new CEO of "Socar Turkiye Enerji" ("STEAS") told reporters about this during a press tour to Izmir.

In addition to the work of the "Petkim holding" (3.6 million tons of various chemical products), in which the company has invested $ 1.6 billion, and the new "STAR" refinery (capacity 11.3 million tons, investments of about $ 7 billion), "STEAS" through its structures in Turkey is engaged in the sale of gas (1.7 million subscribers, through bursagas and kayserigas a total of 28 billion cubic meters of gas for the entire period).

Besides, SOCAR is active in the Turkish part of the Southern Gas Corridor (SGC) - "TANAP", thanks to which Turkey itself (since 2018) and Europe (since December 2020) have received a total of 45 billion cubic meters of gas from Azerbaijan, of which over 21.5 bln cubic meters - Turkey.

Ibadov stressed that Turkey's discovery of large gas reserves on the Black Sea shelf will contribute to the economy of this country and at the same time in the future can increase the efficiency of the "TANAP" gas pipeline.

"For seven years, starting in 2016, Turkey has been purposefully working to raise the level of gas supply from domestic sources. We are talking about the construction of new LNG stations, gas storage facilities and the laying of new gas lines.

At present, Azerbaijan and Turkey are discussing expanding the capacity of "TANAP" from 16 billion to 32 billion cubic meters per year, and we hope that this issue will be agreed and resolved in accordance with the national interests of both states," Ibadov stressed.

According to him, SOCAR will participate in the restoration of the gas pipeline infrastructure in Turkey, which was affected by the February devastating earthquake.

Also, the "green agenda" is being actively implemented.

Thus, 17 wind turbines have already been built and are in use, and their number will grow. Soon, solar panels will also be placed at SOCAR facilities in Turkey.

Added to this can be that SOCAR facilities reduce carbon emissions by 1 percent every year and will achieve carbon neutrality by 2050.

The company's activity in Turkey aims to be profitable, and the choice of projects is focused on this task.

"The work of the "STAR" refinery brings a good income. The dividend policy was discussed. The probability remains that after 2023 a decision will be adopted on possible dividend payments," Ibadov said.

It is to recall that in 2023, the parent company - SOCAR itself - will start paying dividends to the state budget.

"We built the "STAR" refinery in Turkey with loans from a consortium of almost 20 banks. In the loan agreement, the start of dividend payments is associated with the repayment of loans. We are constantly discussing with shareholders (SOCAR has 60 percent in the refinery, the rest - the Ministry of Economy), where it is more expedient to direct profits.

It was decided that this should be directed to reducing the loan debt for the time being. Therefore, there will be no dividends in 2023, but dividend payments are possible in the following years," Ibadov said, answering Turan's question.

Source: Turan News Agency