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Tue 7 Dec 2010 08:02

Socar plans to launch bunker business in Singapore


Plan to start marine fuels business in city-state forms part of 2011 expansion strategy.

The State Oil Company of Azerbaijan Republic (Socar) is reported to be planning to start a bunkering business in Singapore as part of its expansion strategy in Asia in 2011.

The plan would see Socar Trading arbitraging fuel oil from the West to Asia, securing oil storage capacity and supplying marine fuels at the world's largest bunkering port.

Speaking to Reuters, Arzu Azimov, vice-president of trading and operations, said that Socar currently trades around 200,000 tonnes of fuel oil a month, mainly in the West. It aims to increase this volume by sourcing larger quantities of residual fuel from refineries in the Mediterranean.

Socar is also due to meet with terminal operators in Singapore this week to discuss leasing storage capacity as part of its strategy to begin supplying bunker fuel at the city-state.

News of Socar's expansion plans in Singapore follows the announcement in May 2010 that it had entered into an agreement with Aurora Progress to jointly develop oil storage facilities, including a new oil terminal, in Fujairah, the Middle East's leading bunker port.

The facility, set to be named Aurora Fujairah Terminal, is expected to have a total storage capacity of 644,000 cubic meters across 20 tanks and will be used for the storage, blending, and resupply of fuel oils, gasolines, naphthas and middle distillates (diesel, gasoil & jet kerosene). The first phase of the terminal is expected to be operational by 2011.

Commenting on its Singapore strategy last month, Socar said: "As the company continues to show strong growth and further commitment to expanding its presence in the region, we will continue to invest into the personnel and infrastructure of the organisation, with strong emphasis of support towards our offices in Singapore and Dubai.

"Our current reorganisation of staff in the Singapore office shows our dedication towards developing Socar Trading into a responsible and profitable organisation, with an aim to raise our profile and show that we are fully committed to our customers. Our expansion plans for our Singapore office are in line with our worldwide business strategy and with the commencement of construction at our Fujairah oil products storage terminal, we see our Singapore office playing a major role in these expansion plans throughout the Asia Pacific region," Socar added.

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