Sonatrach, Rönesans Holding Secure $550 Million American Investment for Turkish Project
BY: Hana Saada
ALGIERS– In a development for the partnership between Sonatrach, Algeria’ state-owned oil and gas company, and Rönesans Holding, a prominent Turkish conglomerate, President Recep Tayyip Erdogan has announced a significant financial boost from American investors. A whopping $550 million has been pledged by a Washington-based financial institution, marking a significant milestone in the realization of a high-impact project set to transform Turkey’s petrochemical landscape.
The project in focus is the construction of a cutting-edge polypropylene production plant in Turkey, representing a pivotal moment in Sonatrach’s international expansion strategy. This ambitious endeavor comes with an estimated total investment of $1.7 billion, and the newfound American support represents a substantial portion of the required funding.
President Erdogan unveiled this exciting development, stating, “A financial institution based in Washington is participating in financing the project with an amount of $550 million.” Turkish media echoed this revelation, emphasizing the project’s importance on the international stage.
Sonatrach has set its sights on bolstering its global presence, making this venture a top priority within its international redeployment program. The collaboration between Sonatrach and Rönesans Holding recently culminated in the signing of three pivotal partnership contracts, all of which are integral to Turkey’s development plan in the realm of petrochemicals.
The first contract encompasses the comprehensive execution of the EPCC project (engineering, equipment, construction, commissioning) across all phases. The second contract revolves around periodic maintenance work on materials and equipment, ensuring the plant’s sustained operational excellence. Finally, the third contract pertains to the sales and marketing services for petrochemical products from the complex.
Sonatrach holds a 34% stake in this venture, with Rönesans Holding owning the remaining 66%. The production facility boasts a capacity to manufacture 450,000 tons per year of polypropylene, with Sonatrach providing a consistent supply of 550,000 tons of propane annually to support this ambitious undertaking.
After nearly two years of intense negotiations and diligent efforts to secure international financing for this monumental factory, the horizon is brightening for this Western-bound initiative. The attainment of half of the required international financing, amounting to approximately one billion dollars, signifies a significant step forward in realizing the vision shared by Sonatrach and Rönesans Holding. This collaboration promises not only economic growth but also cements their position as leaders in the global petrochemical industry.
