The State Oil Company of Azerbaijan (SOCAR) intends building a new oil refinery in Kyrgyzstan with a likely location in the country's Chuy province, the Kyrgyz Energy Ministry said on Monday.
According to information, the Chuy province administration has offered four parcels of land for the construction of SOCAR's oil refinery with a capacity of two million tons.

It has emerged the energy ministry had previously worked out the question of the plant's supply of electricity with the National Electric Network of Kyrgyzstan.

The Azerbaijani delegation led by the vice-president of SOCAR on processing David Mammadov was in Kyrgyzstan on March 2-4. It aimed at discussing in detail issues regarding the implementation of the project, as well as taxation and investments.

The delegation held talks in the Kyrgyz Energy Ministry with along with the participation of representatives of the Chuy province administration, National Electric Network of Kyrgyzstan, Kyrgyzneftegaz and had meetings with representatives of the country's oil traders association, the state agency for geology and mineral resources and the State Tax Service under the government.

During the meetings the Kyrgyz side provided information about the structure of the oil refining industry of the republic, a system of taxation and investment, the pricing policy, issues of export and import of petroleum products in the country, volume of oil and natural gas, gas and reserves of natural resources of the country.

Representatives of the Azerbaijani delegation brought the Kyrgyz side's attention to issues relating to the project for further development.

The agreement on the construction of the oil refinery was reached on Jan.19 at a meeting of Kyrgyz President Almazbek Atambayev and SOCAR President Rovnag Abdullayev. The oil refinery is scheduled to be commissioned in late 2013.

The minimum cost of the oil refinery, which SOCAR plans to build in Kyrgyzstan, hits $100 million.

SOCAR includes the Azneft production association (the companies producing oil and gas on and offshore), the Azerkimya industrial association (chemical enterprises) and Azerigaz industrial association (gas distribution).

SOCAR is the only producer of oil products in the country (it has two refineries on its balance sheet) and also owns petrol stations in Azerbaijan, Georgia and the Ukraine. Last year SOCAR purchase network of gas filling stations in Switzerland. SOCAR is co-owner of the largest Turkish petrochemical complex Petkim. The company carries out oil trade in various regions of the world through SOCAR Trading.