Plans underway to double output at Petkim by new owners

13-Dec-07

Turkey's Turcas, in a consortium with Azeri energy company Socar and Saudi Arabia-based Injaz, has bought a controlling stake in Turkish petrochemical company Petkim in a privatisation tender of US$2.04 bln. The consortium that constitutes the new owners of Petkim plan to invest $2 billion to double capacity by 2015, though the deal is being challenged in court. The state's controlling stake in Petkim could be handed over to its new owners by the end of January. The deal has been opposed in the courts, although other privatisations have gone ahead despite court challenges. Upon expansion, revenues are estimated to surge to US$4 bln from current levels of US$1.5 bln, while production is expected to increase to 6.4 mln tpa from the current 3.2 mln tons.