Turkish polyester giant Erdemoglu eyes $25B investment in Gabar oil processing
File photo shows an aerial view of the construction site of SASA Polyester's Purified Terephthalic Acid (PTA) petrochemical facilities in Adana, Türkiye, on Sep. 29, 2023. (AA Photo)
Ibrahim Erdemoglu, chairman of the board at Erdemoglu Holding, a leading Türkiye-based conglomerate, recently visited oil wells in Sirnak’s Gabar Mountain as part of the company’s preparations to invest $25 billion in the petrochemical sector
According to a statement by the holding company, the planned petrochemical facility in Yumurtalik, Adana, will become one of Türkiye’s largest. The initial phase of the SASA Yumurtalik Project, which will invest $5.5 billion, is set to commence in 2026.
Erdemoglu indicated that the total investment budget for the SASA Yumurtalik project over the next decade would reach $25 billion. Once operational, the facility will process crude oil into raw materials, intermediate products, and end products, extending to the production of yarn.
Ibrahim Erdemoglu emphasized the importance of oil exploration in Türkiye, noting that their investments would focus on producing petrochemical products using crude and condensate oil. He also expressed the company’s intent to gather insights into the five-year plans for Gabar’s oil wells.
Erdemoglu highlighted that Türkiye imports $22 billion worth of petrochemical products annually. He believes that leveraging local oil resources from Gabar could provide an opportunity to eliminate the country’s dependence on imports.
The company also plans to establish a refinery capable of processing approximately 6.5 million tons of products annually, aiming to increase this capacity to 13 million tons. This would significantly reduce imports of diesel, LPG, and similar products.
As of November, Türkiye produced 3.425 million barrels of crude oil, half of which originated from Gabar. The region is noted for producing the country’s highest-quality oil, with daily production exceeding 61,000 barrels.
Erdemoglu Holding, through its SASA brand, is a leader in the polyester industry outside of China and India. The group also owns Merinos, one of the world’s leading carpet manufacturers, responsible for 7% of global carpet sales and valued at $2 billion.
