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SOCAR confirms interest in acquiring DESFA stake

Oil&Gas Materials 26 August 2015 17:36 (UTC +04:00)
SOCAR (State Oil Company of Azerbaijan) has confirmed its interest in acquiring a stake in Greek gas transmission system operator DESFA with a possibility of completing the transaction by late 2015, Reuters reported Aug. 26 quoting a representative of the Hellenic Republic Asset Development Fund (HRADF).
SOCAR confirms interest in acquiring DESFA stake

Baku, Azerbaijan, Aug. 26

By Maksim Tsurkov - Trend:

SOCAR (State Oil Company of Azerbaijan) has confirmed its interest in acquiring a stake in Greek gas transmission system operator DESFA with a possibility of completing the transaction by late 2015, Reuters reported Aug. 26 quoting a representative of the Hellenic Republic Asset Development Fund (HRADF).

The representative said that Athens examined the variant, in which SOCAR will acquire a 66 percent stake in DESFA with the further transfer of 17 percent to the Greek government or the third party to comply with EU requirements.

The representatives of HRADF and Hellenic Petroleum held a meeting with SOCAR's representatives Aug. 26. The sides reaffirmed their commitment to the rapid completion of the transaction, HRADF said.

SOCAR won a tender in December 2013 on the sale of the 66 percent share in DESFA for 400 million euros.

In November 2014, the European Commission started an inquiry into the compliance of the deal on acquisition of a stake in DESFA with the EU's regulations.

Currently, the deal is being considered by European Commission's Directorate-General for Competition, and the procedure will last until late 2015.

SOCAR is the sole producer of oil products in Azerbaijan. It has two oil refineries on its balance sheet, and also owns filling stations in Azerbaijan, Georgia, Ukraine, Romania and Switzerland.

SOCAR is also a co-owner of the largest Turkish petrochemical complex, Petkim and other assets in Turkey.

The company is currently carrying out work as part of ensuring the Azerbaijani gas supplies to Europe.

Work is underway in this regard within the second stage of development of the Shah Deniz offshore gas and condensate field, and for expansion of the South Caucasus Pipeline.
Aside from that projects are being developed for construction of the Trans Anatolian Natural Gas Pipeline (TANAP) and the Trans Adriatic Pipeline (TAP).

Edited by CN

follow the author on Twitter: @MaksimTsurkov

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