Turkey awards refinery licence to two companies

Turkey's energy regulator has decided to grant a licence to a consortium of Calik Holding and Indian Oil Corp (IOC) to build an oil refinery, sources said.

Turkey awards refinery licence to two companies
The same sources said the regulator had delayed a decision on an application from Petrol Ofisi and Austria's OMV to build an oil refinery as another group had applied to build a power plant on the same site.

Initial approval had been granted for both projects, but with the awarding of the licence to Calik, investment in the refinery can actually start.

The sources did not say when the final decision on the POAS/OMV refinery would be announced.

OMV gave no immediate reaction to the news.

"We won't be commenting at this point in time because no decision has been made," said OMV spokesman Thomas Huemer.

Shares in Petrol Ofisi dropped sharply in the last minutes of trading to stand 1.6 per cent down on the day from a previous fall of 0.8 per cent.

The Calik project will be Turkey's first privately built refinery. Until now Turkey's only refinery has been recently privatised Tupras.

Calik and IOC's refinery is expected to process 15 million tonnes of crude oil a year and is seen costing $4.9 billion.

Both refineries are planned for Ceyhan, where the Baku-Tbilisi-Ceyhan pipeline and a pipeline from Iraq terminate, and would operate for export, the companies have said.

$1.5 billion pipeline

Calik Enerji and IOC have meanwhile started building a $1.5 billion pipeline that is designed to carry Russian and Kazakh oil from the Black Sea port of Samsun to the Mediterranean, bypassing the congested and bad weather-prone Turkish straits.

OMV and Petrol Ofisi's refinery project is planned to handle 10 million tonnes per year, and would cost approximately $4.5 billion.

A third refinery at Ceyhan - which Turkey aims to develop as a regional energy hub - is also planned, to be built by Turkish firm Turcas and Azerbaijan's Socar.


Güncelleme Tarihi: 09 Aralık 2007, 18:07