Tekfen Holding-SOCAR Co-operation Expands to Include Production Facilities

For many years, Tekfen Holding has been serving SOCAR (Azerbaijan's State Oil Company) in the role of contractor, helping SOCAR to realise its investment projects. Now the scope of this co-operation is being expanded to cover production facilities.

Tekfen Construction has been a main contractor of SOCAR's major oil and gas investment projects and superstructures. These projects have been carried out partly on Tekfen Construction's own account and partly in conjunction with Azfen, a locally-based company set up jointly by Tekfen and SOCAR.

Recently, a sizeable team of Tekfen management visited Baku on the occasion of the UEFA Europa League Final, played on 29 May in the Baku Olympic Stadium - a stadium built by Tekfen Construction on a turnkey basis that included engineering and procurement. During this time, the Tekfen management team had meetings in Baku and signed a Protocol with SOCAR regarding a new strategic partnership that is shortly to come into effect.

The Protocol covers co-operation in a wide variety of areas, among which are the following:

- The construction of a new plant for the production of urea and ammonia by the companies of the Tekfen Contracting Group on a turnkey basis;
- The marketing of the products (generated by this plant) in Turkey via Toros Agri's extensive chain of distributors; and
- The development (within the scope of Toros Agri's R&D activities) of new products that create added value, and the marketing of these products in various regions of the world.

The Protocol foresees that the new plant will have a daily production capacity of 2000 tons of urea and 1200 tons of ammonia, and that Tekfen Holding will have a stake in the plant as an investor, the size of this stake to be determined on completion of the necessary studies.