Saudi company Injaz Projects and its consortium partners, Azerbaijan Oil & Gas Company (SOCAR), the Kazmunaigaz Company of Kazakhstan and Turcas Petroleum A.S. of Turkey, have been awarded the controlling stake in Petkim Petrokemiya after the Turkish government reversed its decision to sell the state owned petrochemicals manufacturing company to the highest bidder. Six international consortiums, including major operators and investment companies specializing in the field of petrochemicals were competing with the Injaz consortium for these shares.
Second contender in the Petkim privatization deal, the Injaz consortium offered $2.04 billion (SR 7.05 billion) for 51 percent of the shares. Injaz Projects owns 10 percent of the majority share holding acquired by the consortium.
The Saudi company acted as a technical consultant and developed the financial model for the bid, working jointly with Standard Bank and Finansinvest. Ameen Killidar, Chief Executive Officer of Injaz said “We are satisfied with the decision and we look forward to developing this important sector in cooperation with our partners. Together, we will utilize all available resources along with our regional and international expertise to expand.”
Mr. Killidar expressed his appreciation for the Turkish government’s trust in the new consortium, adding that the combined experience and expertise of the partners will add value to Turkey’s leading petrochemicals company.
He went on to say “the entry of Injaz Projects into the Turkish market will enhance the company’s status as an international investor and developer giving us (Injaz), the credentials that will allow us ( Injaz) to participate in other petrochemical projects regionally”.
The Petkim industrial complex is strategically located on the west coast of Turkey and the company is considered to be one of the most important petrochemicals manufacturers in the region, owning a significant market share in Greece and the Black Sea countries. Exports are already making a positive impact on Petkim’s prospects, which are further enhanced by the planned development of long term relations with major clients. In addition to the massive investment in developing infrastructure facilities which took place between 2004 and 2006, Petkim has licenses for several future projects which include building oil refineries, a utility plant and liquid oil gas stations.
Injaz Projects is a conglomerate owned by three Saudi corporations: Al Muhaideb Group which owns 40 percent; Al Fozan Group which also owns 40 percent; and Amwal Al Khaleej which owns 20 percent. The company’s headquarters are in Saudi Arabia, with a branch in Bahrain.
The company develops mega projects in various sectors in the MENA region and provides technical and financial consultancy services for oil, energy, infrastructure and telecom projects. Injaz is looking to capitalize on the liberalizing of economies in the region, pursing privatization initiatives.