State Oil Company of the Republic of Azerbaijan (SOCAR) has become one of Türkiye’s largest foreign investors and a core pillar of the Baku–Ankara energy partnership. Since acquiring Petkim in 2008, the Azerbaijani state energy company has built an integrated portfolio spanning petrochemicals, refining, gas transit, logistics, storage, and power generation. SOCAR reports approximately $18.5 billion invested in Türkiye, while Azerbaijani officials cite around $19 billion; the additional $7 billion polyolefin expansion remains a future commitment, not current investment. This portfolio creates commercial value for Azerbaijan and strengthens its regional influence, while Türkiye gains capital, industrial capacity, refined products, petrochemical feedstock, gas connectivity, and electricity generation. The partnership is therefore a potential win-win, although exposed to market volatility, geopolitical instability, regulatory uncertainty, and the energy transition.

From Petkim to an integrated industrial platform

The foundation of SOCAR’s Turkish strategy was the acquisition of a 51 percent stake in Petkim through Türkiye’s privatisation process in 2008 for approximately $2.04 billion. Petkim is Türkiye’s first and only integrated petrochemical producer, supplying raw materials to sectors including plastics, packaging, construction, automotive manufacturing, textiles, pharmaceuticals, and agriculture.

Reuters reported that Petkim operated 16 production plants and produced approximately two million tonnes of petrochemicals in 2024, meeting around 11 percent of Türkiye’s domestic demand. Petkim’s own investor-relations material currently refers to approximately 9 percent of Türkiye’s petrochemical raw-material needs. The difference demonstrates why market-share figures should always be connected to a specific year, product category, and calculation method.

Petkim is strategically important because Türkiye remains dependent on imported petrochemical products.

SOCAR’s ownership therefore gives Azerbaijan access to a large industrial market while supporting Türkiye’s efforts to expand domestic production. The investment also moves Azerbaijan beyond the traditional role of a crude-oil and natural-gas exporter.

SOCAR’s ownership therefore gives Azerbaijan access to a large industrial market while supporting Türkiye’s efforts to expand domestic production. The investment also moves Azerbaijan beyond the traditional role of a crude-oil and natural-gas exporter.

By participating in the production and marketing of higher-value industrial materials, SOCAR can capture downstream margins that would otherwise accrue to third parties. Türkiye benefits from greater access to industrial inputs used throughout its manufacturing economy.

The STAR Refinery deepened this integration. Located in Aliağa, İzmir, the refinery was inaugurated in October 2018 after a reported investment of $6.3 billion. Azerbaijan’s........

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