2
SOCAR (State Oil Company of Azerbaijan Republic) is an integrated NOC with business in chemicals
Exploration & Production Main export pipelines Refining &
petrochemicals Supply logistics & trading
Marketing and distribution
▪ Oil: – ACG – Oil rocks – Onshore oilfields – Various supporting
industrial activities ▪ Gas:
– Shah-Deniz – Absheron – Umit
▪ Other offshore fields in the Caspian basin
▪ Oil: – NREP – WREP – BTC
▪ Gas: – Baku-Mozdok – SCP and SCPx – TANAP – TAP
▪ Refining: --Heydar Aliyev refinery
▪ Petrochemicals: – Azerikimya – SOCAR Polymer – SOCAR GPC
▪ Azerigas Processing
▪ SOCAR Trading: – Switzerland – UK – Singapore – UAE – Canada
▪ Various terminal logistics, e.g., – Kulevi – Fujairah – Ust-Luuga
▪ Oil product marketing – Azerbaijan – Georgia – Ukraine – Romania – Switzerland
▪ Gas distribution – Azerbaijan – Georgia
SOCAR Turkey and its subsidiaries detailed on the next page
3
SOCAR is committed to further advance its synergic, integrated downstream business presence in Turkey
SOCAR has already invested/committed significantly to Turkey…
▪ Expansion in fuel distribution ▪ Further completion of logistics
infrastructure ▪ Growth in promising Turkish
petrochemicals market ▪ Integration/synergy projects on
commercial and operational topics
…and will further advance its integrated downstream business
Investments to Turkey US$ billions, 2008-2018 total planned1
9.5 Gas pipeline (TANAP)
5.72
18.1 Total
2.4
0.5
Petchem (Petkim acquisition and investments)
Port (Petlim)
Refinery (STAR) ▪ STAR refinery will: – Capture diesel and jet
opportunity in Turkey – Create synergies within
large downstream complex
1 With partnerships 2 initial investment
4
PETKİMWindPowerPlant
STARRefinery
PETKİM
PETLİM
SOCARTurkeyAkaryakıtDepolamaA.S
EfficientlyIntegratedSOCARAliağaPeninsula
‘SpecialSecurityZone’‘SpecialProjectZone’superceedesmostofthelocalandregularprocesses
Feedstockcosts↓LogisPccosts↓Sustainablequality↑Inventorycosts↓
Sharedservicessuchas:FirefighPng,maintenance,laboratory,R&D,IT,watersupplyandsecurity
5
SOCAR has a growth-oriented geographic coverage, with a range of activities covering all of the value chain
SOCAR's regional presence is intensive in Europe with a focus on Black Sea basin… … and strengths are on upstream, trading and piping
Activities Assessment
Refining
Petrochemicals
Upstream
Pipeline
LNG & CNG
Marketing1
Pipeline
Refining
Petrochemicals
Gas
Exploration & Production
Switzerland Romania
Ukraine
Turkey
Georgia
Azerbaijan
1 Wholesale and/or distribution 2 Trading offices in UAE, Switzerland, Singapore, UK, Canada
Marketing1
Trading2
Greece Albania
Italy
7
Brief Description Of Refinery
Capacity 10 mtpa (214,000 bbl/day )
Configuration Deep Conversion (Coking)
Refinery Complexity NCI: 9.0
Design Basis Kirkuk (50%) and Iran Heavy (50%)
Crude Processing Range 28-36 API
Storage Capacity 1,630,000 m3 (Nominal)
CO2 Footprint 2.3 mtpa (30.56 kg/barrel)
Initial Investment value USD 5.7 billion
9
STAR Current Project Status
Text
Coke drums
Kerosene hydrotreater
Refinery marine terminal
HC / DHT feed tanks
Cooling tower and utilities
Crude/Vacuum Distillation Unit
EPC Progress (Mar’17)
Engineering: 99.9%
Procurement: 99.0%
Construction: 72.6%
Overall: 86.9%
11
MotorFuels
Diesel 4,770
JetFuel 1,625*
LPG 320
FeedstocksforPetrochemicals
Naphtha 1,520
Reformate 1,005
Others
PetroleumCoke 691
Sulfur 159
TotalProduct 10,089
FuelGas/Loss 453
*Withflexibilitytoconvertupto1,000ktpaofJetFueltoDiesel
Feedstocks
CrudeOil 10,277
NaturalGas 265
Total 10,542
Original Production Plan kton/year
12
CDUU-100
VDUU-100
SGPU-110 NHT
U-120
CCRU-160
KHTU-130
DHTU-140
HCUU-150
DCUU-190
SRCTU-410
UGPU-116
URCTU-415
HGUU-450
REFINERYSIMPLEFLOWDIAGRAM
SRUU-430
NG LPG320KTA
LIGHT NAPHTHA1,520KTA
REFORMATE1005KTA
JET A-11,625KTA
ULSD4,770 KTA
SULPHUR159KTA
PETCOKE691KTA
CRUDEOIL
13 13
Products RefineryProductm3 TerminalProductm3 FutureExpansionm3 TotalPlannedm3
Diesel 184.300 141.500 173.600 499.400
Jet 70.000 25.400 67.000 162.400
Naphtha 193.000 - 193.000
Reformate 81.800 - 67.000 148.800
LPG 18.900 45.000 63.900
FuelOil - - 80.000 80.000
Liquidsulphur 1.600 - 1.600
Gasoline - 24.500 52.000 76.500
TOTAL 549.600 236.400 439.600 1.225.600
Intrm.Products 439.500 439.500
Crudeoil 637.700 240.000 877.700
TOTAL 1.626.800 236.400 679.600 2.542.800
OperationStorageCapacitiesm3
RefineryFeedstockm3
RefineryIntermediateFeedstockm3
Jedy1 :35,000–165,000DWTCrudeoil,dieselJedy2 :5,000–35,000DWTDiesel,mixedxylenes,lightnaphtha,reformate,jetfuel
Jedy3 :1,000–35,000DWTLPG,reformate,mixedxylenes,diesel,jetfuel
Jedy :1,000–40,000DWTDiesel,jet,gasolineGantry :8Gantry(4Top,3BoVom,1HybridType)
TankCapacity
Refinery(Un)LoadingCapacity
Terminal(Un)LoadingCapacity
Storage and Logistics System
14 30
Sept
embe
r 10
2008
July
23
2010
October 25th 2011
Dec
embe
r 5 2
012
May
20
2013
Dec
embe
r 2o
2012
June
4
2008 2010 2011 2012
Febr
uary
2
012
2013 2014
June
6
2015 2016 `
STAR Rafineri AŞ was founded STEAŞ founded STAR Rafineri A.Ş. in order to eliminate Turkey’s raw material import needs and to put on the market refinery products which are not manufactured in Turkey.
Groundbreaking ceremony of STAR Refinery was performed The groundbreaking ceremony of STAR Refinery, which is known as the biggest localization project in Turkey and the greatest investment made at a single point, was performed. Azerbaijan Republic President İlham Aliyev and Turkish President Recep Tayyip Erdoğan attended the ceremony.
First investment incentive certificate goes to SOCAR Turkey First “Strategic Investment Incentive Certificate” of Turkey was given to SOCAR Turkey. The amount of investment that is connected to incentive certificate is 6,6 billion TL.
NTP was given to EPC Consortium.
STAR refinery project finance was awarded " Best refinery finance of the year" and Best
refinery finance of the world"
Finished engineering and procurement scope over 99% and progressed construction over 60%
The biggest and the longest-term project financing credit agreement in the history of
Turkish real sector
Signatures were held for STAR Refinery financing The biggest and the longest-term project financing credit agreement, with the value of 3,29 billion dollars, in the history of Turkish real sector had singed. Project financing package is a consortium of 23 banks as ; Exim banks of USA, Japan, Korea, Spain and Italy and 17 commercial and development banks from all over the world, one local bank.
Finished extensive site preparation works over 90%
EPC Consortium was selected
Excavation work began
License obtained for STAR Refinery The required construction and management license for STAR Refinery, which was going to be built by SOCAR in Petkim Peninsula with a capacity of 10 million tones, was obtained from the EMRA
Signatures with EPC Consortium were put for STAR Refinery Four giant companies signed the EPC consortium for the construction, engineering and procurement processes of STAR. Refinery will be constructed by Consortium of Spanish Tecnicas Reunidas, Italian Saipem, South Korean GS Engineering & Construction and Japanese Itochu firms.
16
PetkimistheFirstandOnlyPetrochemicalFirminTurkey
51Years
20km2
2500TheTeam
50+Products
15Plants6UPlity
500Ships3MTons
The16thBiggestFirminTurkey
90,000TonsofWaterPerDay
2500Clients
1985
ProducPonCapacity20163.6MT
17
MevcutYalrımlar
PetlimPort:• 1.5millionTEUcontainerhandlingcapacity• 42hectaremainportarea• 8hectareoff-dockserviceareaterminalport
• APMTandPetlim(Petkim’s70%subsidiary)• Revenuesharingagreementforthe28yearsofthe
operabonalperiod
• GoldmanSachshaspurchased30%stakeinPetlimforatotalconsiderabonofUS$250mnin2015
RES:
• Windpowerplantwithatotalcapacityof51MW
• 200GWhelectricitygenerabonperannum
18
Ø MajoritystakeheldbySOCARTurkey
Ø TheonlypetrochemicalcompanyinTurkey,foundedin1965
Ø 15plantsand6auxiliaryplantsonatotalareaof20km2
Ø Havingitsownport,dam,powerplantandwastetreatmentunits
Ø Producboncapacity:3.6MTwith87%capacityublizabonin2015
Ø Abroadproductporgolioincludingmorethan50products
Ø Initsproductporgolio,approximately20%marketsharewitharevenueof1.6BUSDin2015
Ø Recentlystrongfinancialperformanceabovethemarketandpeeraverage
Capacibes(T/Y)PVC150,000LDPE350,000HDPE96,000PP144,000
Capacibes(T/Y)MEG89,000ACN90,000PTA105,000
Capacibes(T/Y)CHLORINE
100,000VCM152,000PA49,000
MB 10,000PlasbcProducts 4,000Power(MW) 226
Capacibes(T/Y)ETHYLENE588,000Propylene240,000C4140,000Py-Gas390,000BENZENE150,000P-X136,000O-X50,000
About Petkim
Revenue4.532BlnTL
2015
EBITDA%14.6
NetProfit%14.1
Revenue4.532BlnTL
2016
EBITDA%19.6
NetProfit%16.1
19
Aliaga Petrochemical Complex (Petkim) flow chart
Vinyl Chloride Monomer (VCM) ▪ VCM 152,000
Ethylene ▪ Ethylene 588,000 ▪ Propylene 305,000 ▪ C4 152,000 ▪ Py-Gas 407,000 ▪ Aromatic Oil 95,000 ▪ Fuel Gas, H2 370,000
Aromatics ▪ Benzene 150,000 ▪ Orthoxylene 47,000 ▪ Paraxylene 140,000 ▪ Toluene 16,000 ▪ C5 Mixture 80,000 ▪ Aromatic Naphtha 380,000 ▪ Heavy Aromatics 45,000
Sales
Caustic (100%) 100,000
PVC 150,000
LDPE-T 160,000
LDPE 178,000
HDPE 96,000
Salt 240,000
Raw materials
Ethylene 78,000
FCC Gas 60,000
LPG 160,000
Naphtha (WSRN + HSRN) 2,200,000
HCI ▪ HCI 27% 18,000
Polyvinyl chloride (PVC) 150,000
Low density polyethylene (LDPE-T)
Low density polyethylene (LDPE) ▪ LDPE (Autoclave)
190,000
Plastic processing ▪ Masterbatch
10,000
High density polyethylene (HDPE)
Ethylene Oxide/ Ethylene Glycol (EO/ EG) 89,000 MEG
Polypropylene (PP) 144,000
Acrylonitrile (ACN) 90,000
Phthalic Anhydride (PA) 49,000
Pure Terephthalic Acid (PTA) 105,000
Ammonia 47,000
WSRN 1,600,000
HSRN 600,000
Caustic
Chlorine 100,000
Ethylene 79,000
Ethylene
P-X
O-X
Aro
mat
ic
Nap
htha
38
0,00
0
Aro
mat
ic
Ligh
ts
60,0
00
Py-
Gas
34
0,00
0
Propylene
To the complex 14,000
VCM waste 5,400
VCM 152,000
Ethylene 164,000
Ethylene 198,000
12,000
Ethylene 100,000
Ethylene 57,000
PGP 148,000
CGP 100,000
47,000
69,000
3,000
To the complex 2,000
Masterbatch 7,000
Bag 1,000
MEG 89,000
DEG 8,000
C4 152,000 Aromatic Oil 95,000
Pygas 67,000 PP 144,000
Propylene 57,000
PTA 105,000
Paraxylene 71,000
PA 49,000
Cutter Stock 30,000 C5 Mix 80,000
Benzene 150,000
ACN 90,000
Tons/year
Chlorine Alkali (CA) ▪ Chlorine 100,000 ▪ Caustic (100%) 114,000
To the complex
Product
Semi - Product
20
Petkim plants start – up and major capacity expansion dates Startup date Expansion date
1985 1990 1995 2000 2005 2010 2015
90,000 tons/year
▪ PP
▪ Aromatics
144,000 tons/year
▪ EO/ EG
▪ HDPE
▪ ACN
▪ PVC 150,000 tons/year
588,000 tons/year
Capacity Plants
105,000 tons/year
▪ LDPE - T
10,000 tons/year
100,000 tons/year chlorine
▪ MBE
▪ PTA
▪ LDPE
96,000 tons/year
▪ BAG
89,000 tons/year MEG
190,000 tons/year
▪ CA
4,000 tons/year FFS roll film
▪ VCM
▪ PA
▪ NSC
49,000 tons/year
150,000 tons/year benzene
152,000 tons/year
160,000 tons/year
21 SOURCE:ICIS,McKinsey
1Top25countriesintermsofPetchemconsumpbonexcludingTurkey
160
140
130
180
170
120
18 191513 17161412 201090
11
110
100
150
TurkeyGDPvs.PetrochemicalsConsumpbonDevelopment100=Indexedtoitsyear2010value
GDP(real)
PetrochemicalsConsumpbon
1.4x1.4xTurkey,xGDP
1.2x1.4xGlobaltop25countries1,xGDP
Ø Turkeyisasignificantpetrochemicalsmarket,withconPnuinghealthygrowthexpectaPonsintothefuture,exceedingthegrowthinGDP
TurkishPetrochemicalMarketisGrowing
22
Ø Halfofthemarketprovidedbynon-feedstockadvantagedcountries
1PP,HDPE,LDPE,PSSOURCE:UNcommiVee,IHS,McKinsey
SOURCE:IHS,Petkim,McKinsey
1AveragepricepertonofpetrochemicalsisassumedtobethesameasPetkimaveragepricepertonin2015
2Allpetrochemicalsmarket(excludingfibersandotherextensions)
TurkeyisOneoftheMarketswiththeHighestShareofImportsinPetrochemicals
23
PetkimveStarRafineriSinerjisi
39
16
15
125
55
Aromabcs-PTAchain Otherflows,infrastructureandservices
AromaPcsfeedstocksupply
2
Sharedinfrastructure,servicesanduPliPes4
TotalpotenPalofshort-termsynergies
Feed-stockopPmi-zaPon
OtherflowintegraPon3
Lightnaphthasupply
1
▪ 1.6MTAlightnaphthasupplyfromSTARtoPetkim’sethylenecracker▪ EliminaPonoflightnaphthatransportaPoncost
▪ ReformatesupplyfromSTAR’sCCRintoPetkim’sexisPngaromaPcsplant(insteadofMixedXylenessupplycapturedinSTAR`sbasecasecurrently)
▪ ImprovedsalesvalueandreducedoperaPngcostsforSTAR▪ Increasedandimprovedoutputproductmixduetohigherquality
feedstockforPetkim
▪ UsingrefinerySGPfuelgasstreamandUGPsweetoff-gasesascrackerfeedstock
▪ Costsynergiesfromsharedmaintenance&laboratorystaffing(annual)
▪ One-offpurchasecostreducbonduetocommonsharedmaintenanceparts,sharedEquipment(FireFighbng/MaintenanceEquipment/Cranes)
▪ Waterandsteamsupply,cogeneraPonandpowernotincludedyetinthepotenPalupside
AnnualEBITDAimpactBasedonaverage2012-2016marketfigures1,US$MnTypeofshort-termsynergy ExplanaPon
1Source:ICISpricesdatabase
PetkimveStarRafineriSinerjisiSynergiesfromPetkimandSTARİntegraPon
25
SOCAR TURKEY HUMAN RESOURCES What we are doing? Main Responsibilities
Recruitment
The main responsibility of Human Resources policy is to pay attention to its employees’ recommendations and expectations and to provide them with a safe and healthy work place where ethical values exist.
Performance Management
Talent Management
Learning & Development
Our motto is right people in a right place
Performance evaluation process for fairness and equal opportunities
• Gap analysis, PDP • Competency based career movements • Succession Planning for high potential employees and positions • Talent management
Wide range of training programs where soft skills courses as well as technical trainings are taking important part of Learning and Development program
26
SOCAR TURKEY Internship Program
Internship Duration: 40 days Period: Mid June - September Send your updated CV to [email protected] until 22.04.2017
General Ability Test, Personality Inventory and Englısh language test will be applied to all applicants. All candıdates have to go through assessment process ın order to get internship chance in SOCAR Turkey
25.04.2017 / Bakı Ali Neft Mektebi 26.04.2017 / Azerbaycan Devlet Neft Akademisi
Training Site Tours Projects & Tasks Evaluation Awards
Application Methodology
Assesment Dates
The Internship Program covers
This program is designed to equip interns by professional and personal development training programs. Within this program interns are actively involved in the projects and have chance to simulate the business life.
27
SOCAR TURKEY New Graduate Engineering Program We are lookıng for outstanding, energetic and driven group of high potential engineering graduates to join SOCAR Turkey New Graduate Engineering Program. The aim of our Graduate Program is not only to develop talent for now, but also to prepare talent for a productive career in SOCAR Turkey with strategic objectives for Azerbaıjan
Send your updated cv to [email protected] until 22.04.2017 General Ability Test, Personality Inventory and English Language tests will be applied to all applicants. Applicants who get through the tests will attend to Case Study Assesments. Only successful candidates wıll be selected for SOCAR Turkey New Graduate Engineering Program 25.04.2017 / Bakı Ali Neft Mektebi 26.04.2017 / Azerbaycan Devlet Neft Akademisi
Unique opportunity for refinery experience Professional Development Capability Development Networking
Application Methodology
Assesment Dates
Advantages of Graduate Program
28
Assesment Details
General Aptitude Test This test measures an analytical and deductive skills. It will last 50 min.
This inventory measures your strengths and weaknesses in general. Personality test is expected to demonstrate reliability and validity, duration ıs 35-40 min.
English Language Test
This test is multiple choice test that measures your English level, duration is about 45 min.
This session will be only for graduated engineering candidates. Candidates who get through the tests will attend to Case Study Assessments. Further details will be shared with participants.
Internship Assessment includes
Engineering Assessment includes
General Aptitude test, Personal Inventory, Technical Test and English Language Test
General Aptitude test, Personal Inventory, Technical Test and English Language Test, Case Studies.
Personality Inventory
Case Study session
Technical Test This test measures your technical skills, duration is about 60 minutes