With over a decade of experience spanning Türkiye, Azerbaijan, and the United Arab Emirates, Ibrahimov joined SOCAR Türkiye in 2017 as Petrochemicals Commercial Group Director, subsequently assuming key managerial roles across petrochemicals, refinery, and holding headquarters.

Fuad Ibrahimov’s visionary approach and commitment to excellence have propelled SOCAR Türkiye towards achieving its goals in the dynamic energy market. As a key figure in the industry, Ibrahimov’s insights and direction shape the future trajectory of SOCAR Türkiye’s gas business, making him an indispensable asset to the company.

International Finance caught up with Fuad Ibrahimov, who shared his thoughts about SOCAR Türkiye’s natural gas operations, activities undertaken by SOCAR Türkiye, technological advancements and investments made on the gas side, and much more.

Could you provide details regarding the activities undertaken by the SOCAR Türkiye Natural Gas Business Unit?

Within our SOCAR Türkiye Natural Gas Business Unit, we not only offer gas distribution services through our group companies, Bursagaz and Kayserigaz, but also collaborate with SOCAR Enerji Ticaret, which is actively involved in providing services related to the supply, trade, and wholesale of gas and electricity. Our gas portfolio constitutes 6% of Türkiye’s overall consumption, establishing it as one of the most substantial private sector gas portfolios in the country. In the wholesale markets for both electricity and gas, we stand as one of the prominent private sector players in Türkiye. The year 2023 held special significance for us. As SOCAR Türkiye, the largest integrated industrial group in Türkiye, we marked the 15th year of our journey. We also celebrated the 20th anniversary of our group companies, Bursagaz and Kayserigaz.

We operate with the vision of being the preferred energy solution partner for our customers. For years, we have been providing electricity not only to customers within our portfolio but also to our group companies. This year, our electricity end-consumer portfolio volume reached 300 MW, and with our trading transactions, it expanded to 550 MW. Beyond gas and electricity supply, our solution partnership encompasses a diverse array of services, including gas and electricity products, sustainable solutions, green energy initiatives, and rooftop solar panel services meticulously developed with a focus on meeting the specific needs of our customers.

We are currently redesigning our Bursagaz and Kayserigaz Customer Service Centres, Call Centre, and websites to enhance efficiency and user-friendliness. In the prestigious Türkiye Customer Experience Awards, held in September, we were honoured to receive the silver award in the “Best Customer Services” category, recognising our dedicated efforts in enhancing the customer experience. Furthermore, the SOCAR Türkiye Gas Business Unit received two awards from international organisations.

At SOCAR Türkiye, we recognise that our most valuable asset is our employees. Aligned with our motto “Together, We Are Strong,” we have embraced an integrated and technology-oriented management model to optimise and sustain our business operations. With the implementation of our new business model and robust technological support, we have been able to achieve more efficient results right from the outset. Throughout these accomplishments, we have consistently prioritised occupational health and safety, placing it at the core of all our activities.

Could you provide insights into the plans that Kayserigaz and Bursagaz have for the upcoming year? Additionally, are there any new investments planned?

Kayseri and Bursa, being pivotal industrial centres in our country, are highly coveted cities, drawing significant investment and migration. Presently, we provide services to around 2 million subscribers in Bursa and Kayseri. In both cities, our network investments are ongoing at an intensive pace, and our subscriber numbers are increasing day by day.

In Bursa, we have undertaken new investments aimed at optimising our high-pressure gas network within the city, thereby enhancing the security of our supply. In Kayseri, we have devised an investment plan with the goal of extending gas supply to all 16 districts within our licensed area by the end of 2024.

Furthermore, we have planned the construction of new city entry stations to address the additional investment requirements of districts currently utilising gas, thereby reinforcing the security of our gas supply. In the upcoming period, our objective is to sustain our advancements and enhance business continuity and efficiency through the digitalisation of our processes.

Through a dedicated focus on solution orientation and efficiency in our customer interactions, we are committed to advancing our service quality and swiftly adapting to the evolving customer needs within our sector. Our strategy revolves around ensuring end-to-end satisfaction for our customers.

Can you elaborate on the technological advancements and investments made on the gas side?

Similar to all group companies of SOCAR Türkiye, digitalisation remains a focal point and holds paramount importance at both Bursagaz and Kayserigaz. The mobile applications we have launched on the gas side expedite and streamline not only our internal processes but also those of our customers. As an example, the “iTesisat” project we initiated enables the comprehensive management of all field activities related to internal installations through our integrated mobile application. Our proprietary application, utilised by Customer Services, Customer Solution Centre, and Call Centre, has successfully reduced call centre talk and resolution times by 50%, streamlining end-to-end processes. We have upgraded our industrial SCADA solution, enabling the visual monitoring and control of all our underground investments in the gas distribution process, to the latest and most secure version through a technical update. This upgrade has enhanced its resilience in critical aspects, including security, accessibility, and business continuity.

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Saudi Aramco has both the world’s second-largest proven crude oil reserves, at over 270 billion barrels (43 billion cubic metres) and the largest daily oil production tally among all oil-producing companies.

Saudi Aramco, established in 1933, is currently operating the world’s largest single hydrocarbon network, the Master Gas System (which came online in 1982 to transport associated gas from the Ghawar oil field to support the Kingdom’s industrialization). In 2013, Aramco’s total crude oil production reached the tally of 3.4 billion barrels, and in 2022, the venture was producing 13.6 million barrels of oil equivalent per day (mmboed), including 11.5 million barrels per day (mmbpd) of total liquids, from its over 100 oil and gas fields in Saudi Arabia, including 288.4 trillion standard cubic feet (scf) of natural gas reserves.

As per the stats, between 1998 and 2021, Saudi Arabia saw its oil production volume increase by 2.6 million barrels per day, and peaked at 12.4 million barrels per day in 2016. Aramco was the guiding force behind these efforts.

Two of Saudi Aramco’s most prominent oil fields are located in the Kingdom’s eastern part, in the form of the Ghawar (world’s largest onshore oil field) and the Safaniya (world’s largest offshore oil field).

On 11 December 2019, Aramco made its debut at the Saudi Tadawul stock exchange. During the initial moments, the shares rose to 35.2 Saudi riyals, thus giving it a market capitalisation of about USD 1.88 trillion, while surpassing the USD 2 trillion mark on the second day of trading.

In the 2023 Forbes Global 2000, Saudi Aramco was ranked as the world’s second-largest public company.

The guiding force behind Aramco’s steady market rise is its 65-year-old President and CEO Amin Hassan Nasser, who took up the leadership role on a permanent basis in September 2015.

Who Is Amin Hassan Nasser?
• Born in 1958, Amin Hassan Nasser has a Bachelor’s degree in petroleum engineering from the King Fahd University of Petroleum and Minerals in Dhahran
• He also completed the Saudi Aramco Management Development Seminar in Washington, DC in 1999; the Saudi Aramco Global Business Program in 2000; and the Senior Executive Program at Columbia University in 2002
• Amin Hassan Nasser’s stint with Saudi Aramco started in 1982 as an engineer in the oil production department, following which he went on to work in the venture’s drilling and reservoir wing
• In 1997, he became the manager of the Ras Tanura Producing Department, following which he took on leadership roles in the Northern Area Production Engineering Department and the Safaniya Aramco.com Offshore and Onshore Producing Departments
• In 2004, Amin Hassan Nasser was appointed as Aramco’s Chief Petroleum Engineer and became the Senior Vice-President of the Saudi energy giant’s upstream operations in 2008
• Amin Hassan Nasser, who is the fourth Saudi national to head the company, became Aramco’s Acting President and CEO in May 2015, and was made permanent in September 2015
• His leadership also saw Aramco facing drone and missile attacks on its facilities in September 2019. Yemeni Houthis were behind the incident, which led to two of Aramco’s eastern facilities facing repair-like situations, cutting Saudi’s oil production by about half, thus leading to the destabilization of global financial markets
• Amin Hassan Nasser also led the company’s entry into the global debt and capital markets with its first bond issuance
• He oversaw Aramco’s 2019 IPO in which it became the world’s most valuable listed company, and resulted in its acquisition of Saudi petrochemicals giant SABIC in 2020
• Amin Hassan Nasser was honoured with the ICIS Kavaler Award in 2020, thereby recognizing his achievements in the field of petrochemicals
• He also led the counter-argument in 2021 against the activists and research groups advocating for fossil fuel companies to become greener. He warned countries against divesting in fossil fuels, stating the move would result in inflation
• Amin Hassan Nasser is also a member of the not-for-profit organization called the ‘Society of Petroleum Engineers’ and has served the body’s Industry Advisory Council since 2008
• He is also handling membership responsibilities in the World Economic Forum’s International Business Council, the JPMorgan International Advisory Council, and the MIT President CEO Advisory Board
• Amin Hassan Nasser is also a member of the International Advisory Board (IAB) of the Dhahran-based King Fahd University of Petroleum and Minerals, apart from being on the Board of Trustees of the King Abdullah University of Science and Technology (KAUST)
• In July 2023, Amin Hassan Nasser was appointed to the board of investment management company BlackRock

Amin Hassan Nasser’s View On Saudi-China Future Ties

“Saudi Aramco aims to play a key role at the heart of China’s long-term energy security and high-quality development,” Amin Hassan Nasser remarked during the China Development Forum in Beijing, which happened in March 2023.

Saudi Aramco will reportedly expand its oil production capacity to 13 million barrels per day by 2027 while increasing gas production by over 50% by 2030 to fuel China’s energy security.

“We are also working on solutions such as advanced carbon capture and storage (CCS) and circular carbon economy technologies. Furthermore, we recently launched a USD 1.5 billion venture capital sustainability fund to invest in advanced technologies to help us move closer to a net-zero emissions future,” he said.

“We want to be an all-inclusive source of energy and chemicals for China’s long-term energy security and China’s high-quality development. That is why we are doubling down on China’s energy supply, including new lower carbon products, chemicals and advanced materials, all supported by emissions reduction technologies,” Amin Hassan Nasser concluded.

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Adnoc has raised more than $19 billion from foreign investors in the last three years, the local media reported.

Adnoc has adopted new reforms and modernisation plans to lure foreign investors. For example, Sultan Ahmad Al Jaber, Minister of State, was appointed as Adnoc CEO as part of its many reforms. 

New foreign investors can help the company sustain and diversify its current financing capabilities. Adnoc supplies nearly 3 percent of global oil demand, Reuters reported. 

Adnoc plans to invest $45 billion to expand its refining and petrochemical business. 

Al Jaber told the media that, “The company looks to increase its share of the international market for crude oil and fuel. We don’t want cooperation to be limited to known or traditional partners, as we want to explore and seize all opportunities.”

The company plans to reduce its greenhouse gas emissions by 25 percent by 2030. To that end, it is making further investments to expand the commercial carbon capture, utilisation and storage facility’s capacity in the region. Adnoc ranks in the top five lowest greenhouse gas emitters in the oil and gas industry. 

The company sold a stake in its pipeline infrastructure and refining business to BlackRock. It has signed deals with other major financial institutions as well. BlackRock is the world’s largest fund manager. 

More recently, Adnoc signed an agreement with  Indonesia’s Pertamina and Chandra Asri to develop a crude to petrochemicals complex.  Pertamina is a state-owned oil and gas company, while Chandra Asri is an integrated petrochemical producer. 

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Once operational, the chemical facility developed by AquaChemie will serve as a strategic gateway that will facilitate smoother chemical trade within the UAE and across the GCC nations.

The facility will also boost the global petrochemical market which is valued at around $539.3 billion.

It will have bulk storage tanks for liquid hydrocarbons chemical processing units, automated drumming lines, warehousing and storage facilities, dedicated road tankers and large trailer truck fleet, pump house and main hose exchange station, separate road tanker entrance with weigh bridge, loading and unloading ramp for forklift operation, and an office block with control rooms.

According to media reports, AquaChemie has signed a deal with Mott MacDonalds-an employee-owned management, engineering, and development consultancy. According to the deal, the UK-based consultancy firm will be providing design, engineering and project management services for the strategic facility.

With regard to the project in the UAE, V Anandkumar, co-founder and director of AquaChemie Middle East, told the media, “The project will serve as a catalyst to boost petrochemical trade between manufacturers in the region and end-users anywhere in the globe. In addition to serving as a sales channel, the project will also allow regional petrochemical majors to market their various product lines in drums or intermediate bulk containers for distribution to the tertiary chemical industry.”

He also pointed out that the project will also serve as a regional hub for other global trading partners to ship economically, in bulk and distribute in smaller packaging.

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SKC announced that it will spin off its propylene oxide and propylene glycol operations. The joint venture will also acquire 45 percent stake in SKC Evonik Peroxide Korea, a hydrogen peroxide making joint venture between SKC and German chemical company Evonik.

According to SKC, the joint venture is based on the long-term trust developed through multiple strategic cooperative projects between Kuwait Petroleum, PIC’s parent company, and SK Group. SKC and PIC aim to explore opportunities to further develop their propylene oxide business globally through this joint venture.

“The acquisition is part of Kuwait Petroleum’s strategy to boost its international petrochemical investments, particularly core petrochemical products with high added value,” Kuwait Petroleum’s CEO Hashem Sayyed Hashem told the media.

The deal with Kuwait’s PIC will help Korea’s SKC achieve its goal of boosting propylene oxide output to 1 million tonnes per year by 2025. SKC currently leads the Korean propylene oxide market by controlling about 70 percent of the market share. The company exports to over 60 countries across the globe. SKC had $2.5 billion in revenues last year.

Earlier in June, SKC acquired KCF Technologies, a leading producer of copper foil for lithium-ion batteries, from Kohlberg Kravis Roberts, a US-based private equity fund.

PIC is a wholly-owned subsidiary of state-run Kuwait Petroleum that has been in the chemical business for a half a century. In 2016, PIC acquired a 25 percent stake in SK Advanced, SKC’s propylene producing business.

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 Chevron Phillips Chemical will hold a 51 percent stake and Qatar Petroleum will acquire the remaining 49 percent stake in the new venture. Chevron Phillips Chemical is a joint venture between Chevron and Phillips. Both companies expect a final investment decision by 2021.

The project will be constructed along the Gulf Coast region where there is good access to the shale natural gas liquid reserves, the press release said. It will include a 2,000 KTA ethylene cracker and two 1,000 KTA high-density polyethylene units. 

Chevron Phillips Chemical will take charge of project management and will be responsible for the facility’s operation. According to the press release, the project construction would support an estimated 9,000 construction jobs, and offer 600 full-time positions once operations commence. 

Chevron Phillips Chemical President and CEO Mark Lashier, said, “Qatar Petroleum is already a terrific partner of Chevron Phillips Chemical on petrochemical plants in Qatar and we look forward to expanding our relationship in the United States as we jointly seek to develop a new petrochemical facility along the U.S. Gulf Coast.  Qatar Petroleum’s financial strength, its commitment to safety as a core value and shared belief in our strategy to build facilities located close to competitive feedstocks make this an ideal relationship.”

 Last month, Chevron Phillips Chemical and Qatar Petroleum announced a joint venture to establish a petrochemical plant in Qatar at the Ras Laffan Industrial City. 

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The Saudi company said in a statement, the refinery in Ratnagiri in Maharashtra will handle up to 1.2mn barrels of oil per day. The complex ‘will rank among the largest world refining and petrochemicals projects and will be designed to meet India’s fast-growing fuels and petrochemicals demand. The project cost is estimated at around $44bn’.

Saudi Aramco President Amin Nasser said: “Investing in India is a key part of our company’s global downstream strategy, and another milestone in our growing relationship with India.

“The signing marks a significant development in India’s oil and gas sector, enabling a strategic joint venture and investment partnership that will serve India’s fast-growing demand for transportation fuels and chemical products.

“Participating in this mega project will allow Saudi Aramco to go beyond our crude oil supplier role to a fully integrated position that may help usher in other areas of collaboration, such as refining, marketing, and petrochemicals for India’s future energy demands.”

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Ian Kerr

March 20, 2017: India is on the move towards digitisation in trade. Our attendance at this year’s GTR India Trade and Treasury Conference in Mumbai certainly confirmed that. With delegates from more than 120 companies and the key banks in the region all energetically networking, we had an excellent opportunity to establish new contacts, strengthen existing relationships and take the pulse of the Indian market.

From our perspective, India looks very positive, advancing towards the national government’s target of increasing digitisation in all spheres of life, whether through a massive rollout of internet access, electronic payments and digital ID systems, or more importantly for us, through increasing readiness to convert to electronic presentation in trade documentation.

A strong sense of the upbeat approach to digitisation came in a panel I moderated looking at ‘Trade digitisation and its application for India: successfully implementing fintech into your company model’. This involved a discussion between Rugved Dhumale, Deputy Treasurer, Petrochemicals at Reliance Industries, and Rakesh Patwari Head of Business Development, Global Trade and Receivables Finance at HSBC India.

The pair reflected on the first digital transaction between Reliance and a customer in Italy, supported by HSBC and which was completed using the Bolero platform. Since it was also the first document exchange of its kind in India, they also discussed the potential benefits and challenges of wider trade digitisation for the country as a whole.

Rugved explained that the transaction had been two years in the planning, but it was the first step in the growing acceptance of digital trade documentation. Although there were various technologies available, the advent of Bolero meant the time for digitisation had arrived, given its ability to accommodate complexity and the differing nature of each transaction for the benefit of all of the counterparties.

Rakesh said digitisation was part of a ‘generational shift’ in international trade and part of HSBC India’s role as a facilitator. “Our purpose is to make the process simpler and smoother, and this (Bolero) brings visibility to every single stakeholder,” he explained.

Having the backing of such huge and respected Indian companies and institutions such as Reliance Industries and HSBC India is very significant step to help to increase digitisation in trade documentation. At Bolero, we already have important Indian banks as members of our community and after speaking to many of the corporate representatives at the event, it became clear that our digital innovation is now resonating very well among the country’s exporters.

There clearly is a groundswell of interest, encouraged by the recent report from Maersk and the Confederation of Indian Industry. Entitled ‘Stimulating India’s EXIM by reducing costs of trade’, this report showed how Indian exports could be boosted by between five and eight per cent if greater priority were given to infrastructure improvements, digitisation and the reduction of regulatory burdens and delays. It demonstrated that inefficiencies can account for anything between 38 and 47 per cent of the total logistics cost. A reduction of 10 per cent in these costs could yield more than $5 billion cost savings each year, a figure that should catch the eye of Indian regulators as well as the country’s corporates.

Although India is not currently as advanced as China in trade digitisation, the potential is huge, given that export growth projections for the country are considerably more than seven per cent for 2017-2018. In China, where Bolero already has many important customers, the realisation that exports will be required to sustain stellar growth rates has prompted the government to push the pace with a series of steps, including the establishment of export credit facilities.

Nonetheless, in India, there is now a real desire to embrace digitisation, led by companies with the vision and enthusiasm such as Reliance. There was no doubt that there is an upbeat mood in this fast-developing economy and trade digitisation should be very much at the centre of this remarkable country’s rapid emergence as one of the world’s great exporting economies.

Ian Kerr is the CEO of Bolero International

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