The Hindu Business Line : Indian Oil gets nod to build refinery in Turkey

New Delhi May 30 Indian Oil Corporation Ltd will undertake a detailed feasibility study on the plans to build a $4.9-billion refinery in southern Turkey. This moves follows the approval from Turkey's energy market regulator to IOC and Turkish builder Calik Holding to build a refinery in that country.

IOC in collaboration with Calik proposes to set up a 15 MMTPA grassroots integrated refinery-cum-petrochemicals complex at Ceyhan in Turkey. This is part of IOC's plans for expanding business in Turkey, Africa, West Asia and Commonwealth of Independent States. This approval marks the entry of IOC in Turkey and also this would be first time that a non-state company of Turkey will build a refinery there.

Turkey's energy-markets regulator approved the application by IOC and Calik Holding. According to IOC sources, given the locational advantage, the proposed refinery is being conceived as an export-oriented unit. Turkey's strategic location makes it a natural `energy bridge' between major oil producing areas in west Asia and Caspian Sea regions on the one hand, and consumer markets in Europe on the other.

IOC is also acquiring 12.5 per cent of the shares in the Trans-Anatolian Pipeline Company, a company promoted by Calik Enerji and Eni of Italy. This company would lay and operate a 550-km crude oil pipeline of 50 MMTPA capacity connecting Samsun and Ceyhan. "Thus, setting up a refinery in the area will prove beneficial for the company," sources said.

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