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SOCAR confirms termination of DESFA deal

Oil&Gas Materials 1 December 2016 13:29
Azerbaijan’s state oil company SOCAR has confirmed the information about the termination of the deal
SOCAR confirms termination of DESFA deal

Baku, Azerbaijan, Dec. 1

By Maksim Tsurkov - Trend:

Azerbaijan’s state oil company SOCAR has confirmed the information about the termination of the deal on the company’s acquiring a 66-percent stake in the Greek national gas transmission system operator DESFA, Anar Mammadov, SOCAR Energy Greece executive director, told Trend Dec. 1.

The Greek government announced about the termination of the Greece-SOCAR talks on DESFA, said a message posted earlier in the day on the website of the Greek Ministry of Environment and Energy.

According to the message, despite the recent constructive talks between SOCAR and SNAM company, the buyers’ offers did not suit the Greek government.

The Greek government’s requirements did not suit the buyers either, the message said

As a result, a decision was made on the completion of negotiations, the message said.

SOCAR won a tender in 2013 on the purchase of a 66-percent stake in DESFA for 400 million euros.

The Azerbaijani company intended to obtain a 31-percent stake from the Greek government and buy a 35-percent stake in the Hellenic Petroleum.

It was expected that the deal will be closed only after the purchase of at least a 17-percent stake out of SOCAR’s 66-percent by Italy’s Snam.

SOCAR extended the term of a letter of guarantee on the tender to buy DESFA’s stake for another month in September and October. A letter of guarantee expired on November 30.

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