RIYADH, 25 August 2005 — Saudi and Gulf investment groups are to hold talks with top level contacts with the companies short listed for the block sale of 51 percent of Tupras shares, the state owned Turkish Petroleum Refinery, Basil M. Al-Ghalayini, CEO of BMG Financial Advisors Group told Asharq Alawsat newspaper and Arab News yesterday.
“We are working with potential GCC investors and/or operators to join one of the Turkish Consortia, including Cukurova, Petrol Ofisi and Oyak groups” he added.
The timeframe for lining up each consortium’s partners to bid for 51 percent stake in the government owned oil refinery Tupras has been extended to Aug. 29. The bidding deadline scheduled to Sept. 2, however, remains the same.
The list of prequalified bidders for Tupras privatization includes ENI Refining and Market Division from Italy, OMV Aktiengesellschaft from Austria, Shell, Repsol YPF S.A. from Spain, PKN ORLEN SA from Poland, Indian Oil Corp. Ltd,. MOL from Hungary, Zorlu Group, Petrol Ofisi, Anadolu Tasm, Energy Group and Oyak from Turkey.
“Tupras had a high geopolitical significance since the winning consortium will have the opportunity to access Caspian oil, as well as heading for the European market. Furthermore, Turkey is a country offering significant opportunities for foreign investors with its geographically perfect position to function as a gateway between Europe, the Middle East and Central Asia” according to Al-Ghalayini.
Tupras has a combined capacity of 27,6 MT/Y representing 100 percent of Turkey’s refining capacity. Tupras also operates five units in the 153,000-ton capacity Korfez Petrochemical Complex.
“The Turkish market is among the top ten most attractive of all the developing countries. Deregulation and privatization of major state-owned enterprises is promising a more dynamic market.
Al-Ghalayini added, Turkey has a developed market economy, with a rich history of private enterprise. The Turkish financial sector is well developed in both technology and legal procedures. “For that reason, BMG Financial Group has its team on the ground to analyze and conduct due diligence on investment opportunities which come to our attention from leading Turkish groups. Saudi and other GCC investors are now eyeing Turkish based investments more than ever especially in sectors such as telecom, retail, tourism, etc.” Al-Ghalayini added.
