SOCAR, Sberbank create joint venture for oil refining at Antipinsky Oil Refinery

  03 June 2019    Read: 1017
  SOCAR, Sberbank create joint venture for oil refining at Antipinsky Oil Refinery

The Azerbaijani state-owned company SOCAR and Russia’s Sberbank have created a joint venture for oil refining at the Antipinsky Oil Refinery, AzVision.az reports citing Kommersant.

According to the report, it is expected that the joint venture, where SOCAR has 60 percent, will conduct processing works at the plant while it is in a state of bankruptcy.

“It is also possible that the joint venture will develop the fields in [Russia’s] Orenburg Province that are part of the refinery,” the report said.

It was also stated in the report that, according to various sources, SOCAR wants to start processing at the Antipinsky Oil Refinery by July of this year, and there is information that the joint venture will buy oil from large oil companies, in particular from LUKOIL and Surgutneftegaz.

In April this year, Russia's Sberbank received 100 percent in Cyprus’ Vikay Industrial, which owns 80 percent of Antipinsky Oil Refinery, while the remaining 20 percent of the shares belong to various other legal entities and individuals. Three weeks later, the management of the company filed a lawsuit to declare Antipinsky Oil Refinery bankrupt. Its total debt to banks is estimated at $5 billion.

Earlier, CEO and chairman of the executive board of Sberbank Herman Gref stated that the bank is continuing negotiations with potential investors on the sale of the refinery. SOCAR is a key contender for the purchase of the refinery’s shares, but a final decision has not yet been made.


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