AZERBAIJAN TO DOUBLE OIL REFINING CAPACITY IN THE MEDITERRANEAN REGION

Azerbaijan can increase its oil refining capacity in the Mediterranean region by up to 22 million tons per year by acquiring assets in Italy, Azerbaijani President Ilham Aliyev stated during the twelfth ministerial meeting of the Southern Gas Corridor Consultative Council and the fourth ministerial meeting of the Green Energy Consultative Council.

"Among the most important achievements and significant factors for us is the acquisition of two oil refineries in Italy with a total capacity of 10 million tons. If we add to this what we already have on the Turkish Aegean coast—an oil refinery with a capacity of 12 million tons—we will have a total refining capacity of 22 million tons in the Mediterranean and Aegean Seas. This in itself will certainly help ensure a stable supply of petroleum products, as will the thousands of service stations included in the agreement," the president stated.

Thus, Azerbaijan's processing capacity in the Mediterranean region will nearly double.

Regarding Azerbaijan's efforts to expand its presence in the international energy market, Aliyev mentioned the agreement to acquire one of the largest power plants in Turkey, with a capacity of 870 MW.

"And last month, a contract was signed with Serbia for the construction of a 500-megawatt power plant in Serbia. Therefore, our contribution to energy security is not limited to our borders and the Southern Gas Corridor," he noted.

In September 2025, the State Oil Company of Azerbaijan (SOCAR) signed an agreement to acquire 99.82% of the shares of Italiana Petroli from API Holding. The transaction has not yet been finalized.

IP Group, founded in 1933 and headquartered in Rome, is wholly owned by the Brachetti-Peretti family. Italiana Petroli is one of the largest integrated downstream platforms in Italy. The company owns thousands of service stations across the country, two oil refineries with an annual capacity of approximately 10 million tons, distributes fuels and lubricants, and has a comprehensive logistics network.

The transaction will allow SOCAR to control a network of over 4,600 IP-branded service stations and oil refining plants. The total value of the transaction is estimated at approximately €3 billion.

In Turkey, SOCAR is a shareholder of the Star Refinery. The refinery, which began operations in 2018, is designed to process Azeri Light, Kerkuk, and Urals crude oils. It supplies raw materials to the Petkim petrochemical complex and paves the way for SOCAR's entry into the Mediterranean market with its diesel and jet fuel, as well as raw materials for the chemical industry. The refinery covers 18% of Turkey's petroleum product needs.

SOCAR has invested approximately $7 billion in the construction and development of the Star Refinery.