News // petrochemistry
Lukoil and Socar plan joint investment in Turkey´s fuel market
15 August 2017 , 12:11Neftegaz.RU463
Russian energy giant Lukoil and the State Oil Company of Azerbaijan Republic (Socar) launched consultations in order to increase their investments in Turkey, turkish Daily Sabah reported on August 15, 2017.
Looking for new partnerships in the Turkish fuel market, Socar and Lukoil plan to purchase the assets of 3rd parties.
Lukoil Senior Vice President of Sales and Supplies Vadim Vorobyev said the Turkish petroleum products market is of strategic importance for Lukoil operations and the company is continuously seeking opportunities to expand its share there.
Vorobyev elaborated on Lukoil's objectives for the global and Turkish market in a meeting with Turkish journalists in Moscow.
«The Turkish fuel market maintains its attraction for Lukoil. We have invested around $1 billion in Turkey,» he noted.
Stating that Lukoil holds between 5 and 6 % of the Turkish fuel market, Vorobyov emphasized that companies in Turkey that operated during the period of 2000-2010 secured more profits than those in Europe.
Noting that Lukoil has made an investment worth more than $1 billion, the vice president said, «However, after our investments, the legislation on fuel retail sites in Turkey was transformed in a negative way. Legislation on decreasing the margin of dealership had negative effects on the outcome. But, we understand that there are reasons for this legislation. Still, we cannot sat that the Turkish market is not attractive to invest in. We do not consider withdrawing from Turkey».
He confirmed that Lukoil and Socar are negotiating the common acquisition assets for sale in the Turkish market.
No conclusion has yet been reached, Vorobyov said, while reiterating the importance of the Turkish markets within Lukoil operations and informing that Lukoil operations in Turkey sell 1.5 million tons of fuel per year.
Entering the Turkish market in 2007, Russian oil company Lukoil has been expanding its operations in the country.
Currently, it is reported to have 600 retail sites across Turkey with 600,000 cubic meters of fuel sold annually.
Socar 's investment in Turkey began when the company acquired the country's leading petrochemical company Petkim in 2008.
The company's investments in Turkey have reached $18 billion since 2008.
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