MILAN, May 27 (Reuters) - State Oil Company of

Azerbaijan (SOCAR), global commodity trader Gunvor and Abu

Dhabi-based Bin Butti Group are expected to submit binding

offers for Italian oil refiner Italiana Petroli (IP) next week,

two sources close to the deal said on Tuesday.

IP, also known as API Group ( APG ), is being advised by UniCredit

on the potential sale, the sources said. IP is owned

by Italy's wealthy Brachetti Peretti family and has a total

refining capacity of around 200,000 barrels per day (bpd). It

also owns a network of 4,600 fuel stations.

IP declined to comment. Gunvor, SOCAR and Bin Butti Group

were not immediately available to comment.

Italian daily la Repubblica said on Tuesday, citing unnamed

sources, that SOCAR is seen as the front runner for the

acquisition and that IP is valued at between 2.3 billion euros

and 2.5 billion euros ($2.61 billion-$2.84 billion).

SOCAR and Gunvor have been exploring possible bids for

longer than Bin Butti, which joined the race for the Italian

group only recently, the sources told Reuters.

Reuters reported last month that binding bids for IP were

due by the end of May and mentioned SOCAR, Gunvor and Glencore ( GLCNF )

as potential bidders.

($1 = 0.8797 euros)