The State Oil Company of Azerbaijan (SOCAR) plans to build a $250m oil refinery with an annual capacity of 2 million tons in Kyrgyzstan.

Azeri industry and energy minister Natik Aliyev said the construction was planned for completion by the end of 2013 or the beginning of 2014.

"Kyrgyzstan and Azerbaijan discussed and approved the construction of an oil refinery in Kyrgyzstan at a high level," added Aliyev.

Aliyev said talks over oil supplies from Kazakhstan to the new refinery were under way.

Currently, SOCAR is constructing an oil refinery with an annual capacity of 10 million tonnes in Turkey, reports Reuters.