SOCAR Türkiye Enerji boosts Petkim complex with $2 billion investment over 16 years

SOCAR Türkiye Enerji's total investments in the Petkim petrochemical complex from 2008 to 2024 have reached around $2 billion, said Kanan Mirzayev, head of the refinery and petrochemical business unit.

During a press conference in Istanbul, Mirzayev noted, "On average, the annual investment volume of SOCAR Türkiye Enerji in the Petkim petrochemical complex plants was $113 million," Caliber.Az reports via local media.

According to him, in total, the company's capital expenditures (CAPEX) for these purposes over 2008–2024 amounted to approximately $2 billion.

Mirzayev also mentioned that, in addition to these capital investments, planned expenses for capital repairs were carried out at Petkim in 2018 and 2022.

"These investments have played an important role in enhancing the production stability of the complex's plants," Mirzayev concluded.

To recall, SOCAR significantly boosted its investments in Türkiye’s Petkim Petrokimya Holding, committing 2.8 billion Turkish liras (approximately $81.6 million) during the first nine months of 2024, marking a 53.95% increase from the same period in 2023.

The funds are aimed at modernizing Petkim’s facilities, upgrading technology, improving energy efficiency, and strengthening environmental protections. Despite the investment surge, Petkim’s output for January-September 2024 fell by 11.1% to 1.6 million tonnes, while petrochemical sales declined by 0.4% to 1.39 million tonnes. The company’s production capacity utilization also dropped to 60.5% from 66.9% in 2023.

SOCAR Türkiye Enerji, a subsidiary of SOCAR, holds a 51% controlling stake in Petkim. The company’s usual annual investment in Petkim is around $100 million. In 2023, SOCAR invested 3.2 billion Turkish liras (approximately $99.2 million) in the complex.

Petkim, established in 1965, is Türkiye’s top petrochemical producer, manufacturing key products like ethylene, polyethylene, and polypropylene. The company is listed on the Istanbul Stock Exchange.

SOCAR’s Supervisory Board also recently convened to review its performance for the first half of 2024, discuss budget forecasts, and assess Environmental, Social, and Governance (ESG) initiatives.

By Aghakazim Guliyev