Indian Oil gets Turkey nod for refinery

New Delhi, May 30 | Updated: May 31 2007, 05:30am hrs
State-run Indian Oil Corp (IOC) has won the approval of Turkeys energy regulator for setting up a $4.9-billion refinery in the southern Turkey.

Turkeys energy-markets regulatory board has approved our proposal to build a 15 million tonnes refinery along with Turkish builder Calik Holding at Mediterranean port city of Ceyhan, a company official said.

While the regulator gave approval to IOC-Calik proposal, it delayed nod for another 10 million tonnes proposal by Vienna-based OMV AG and Turkish fuel retailer Petrol Ofisi AS.

It also did not decide on a third application by Socar, Azerbaijans state oil company, and Istanbul-based Turcas Petrolculuk AS for a separate 10 million tonnes refinery.

Turkey had planned the three refineries at Ceyhan to more than double its refining capacity to 62 million tonnes a year and transform Ceyhan into an export hub.

The official said IOC and Calik have joined ENI SpA of Italy to build a $2-billion pipeline from the Black Sea city Samsun to Ceyhan for transporting Central Asian crude.

The 550-km Samsun-Ceyhan pipeline will carry up to 1.5 million barrels of crude per day primarily from Kazakhstan and will replace the tanker movements through the Bosphorus straits by almost 50 %. The official said a stake in the pipeline would ensure supply of crude to the proposed refinery. IOC has also submitted a proposal to Libyan authorities for modernisation of the 2,20,000 barrels per day Ras Lanuf refinery.