SOCAR to obtain control of Greek gas transmission company in second quarter of 2014
Azerbaijan, Baku, Sept. 13 /Trend I.Khalilova/
The final decision of the European Commission on transfer of control over 66 percent share package of Greek operator of gas transmission company DESFA to the State Oil Company of Azerbaijan Republic (SOCAR) will be taken in the second quarter of 2014, SOCAR's report published on its website said on Friday.
"Till the end of transfer, the Hellenic Republic Assets Development Fund (HRADF) will have the control over the sold part of shares, that is the seller will retain control over DESFA till the end of the year," the report said.
The delegation of SOCAR was informed about this during the first familiarization visit to Athens after the company was announced the tender winner.
During the visits held at Greek Ministry of Environment, Energy and Climate Change, HRDAF and DESFA it was noted that the next stage in the process of purchase and sale will be the solution of clearing issues with the Auditor Court of Greece.
The representatives of SOCAR were informed that the works in this sphere will start next week.
At the same time, the necessary registration procedure will be carried out at the Greek Regulatory Authority for Energy and European Commission.
The SOCAR's representatives were also informed about the further procedures. The sides held an exchange of opinions on the liabilities in connection with the Greek legislation and European Union's Third Energy Package.
The seller has ensured that it will regularly inform about DESFA's activities.
The representatives of SOCAR and the seller affirmed respectful attitude towards the terms of purchase and sale agreement, and noted that the corresponding laws of Greece and EU will also be compiled with in the future.
SOCAR offered 400 million euros for the purchase of 66 percent of shares (31 percent of Greek state privatization fund's shares and 35 percent of Hellenic Petroleum's shares).
Earlier the consortium for development of Trans Adriatic Pipeline (TAP) signed a cooperation agreement with DESFA.
In late June 2013 the consortium for development of Azerbaijani gas condensate field Shah Deniz, in which SOCAR participates, officially announced about the selection of TAP as the route for transportation of its gas to Europe.
TAP project is meant to transport gas from Caspian region through Greece, Albania and Adriatic Sea to the South of Italy, and then to the Western Europe.
The gas which will be produced within the framework of the second phase of development of Azerbaijani Shah Deniz gas condensate field is considered as the main source for the project.
The initial capacity of TAP will amount to 10 billion cubic metres per annum with the possibility of expanding to 20 billion cubic metres per annum.
The construction of TAP is planned to start in 2015.
Currently TAP's shareholders include BP (20 percent), SOCAR (20 percent), Statoil (20 percent), Fluxys (16 percent), Total (10 percent), E.ON (9 percent) and Axpo (5 percent).