SOCAR oil refinery project in Kyrgyzstan depends on Kazakhstan


SOCAR oil refinery project in Kyrgyzstan depends on KazakhstanBaku, Fineko/ The construction of an oil refinery suggested for the State Oil Company of Azerbaijan (SOCAR) by Kyrgyzstan may have regional significance.

Azerbaijani sources say that the Azerbaijani government welcomes the idea of the refinery project in the north of Kyrgyzstan on the condition of its cost-effectiveness and economic efficiency.

“With the Kyrgyzstan-offered refinery value of $250 million, the enterprise can be built for 1 or 2 years on a module principle. At that, if the feasibility study shows recoupment of investments in 2 or 3 years, then the project can be considered as effective,” the source said.

Kyrgyzstan has already started consultations with Kazakhstan on the possibility of obtaining 2-3 million tons of oil from it on the swap conditions with compensation of SOCAR’s oil on the Black Sea coast.

“The swap itself is very profitable for SOCAR, taking into account the higher cost of Azeri oil. However, Kazakhstan can independently finance and build such a refinery in Kyrgyzstan, and SOCAR participation in the project today, in fact, depends on the final agreements between Kyrgyzstan and Kazakhstan,” the source indicates.

He also points to the prospects of petroleum products from this refinery not only in Kyrgyzstan, but also the surrounding areas of Uzbekistan and China.