SOCAR ready for talks on sale of 16-pct share in Greek DESFA

/By AzerNews/

By Aynur Karimova

Azerbaijan's state energy giant SOCAR is ready for talks with the European companies on the sale of the 16-percent share in Greek DESFA gas transmission system operator, SOCAR President Rovnag Abdullayev told journalists on September 18.

To date, no agreement has been reached with any company.

“But we are ready to sell 16-percent share to European companies and hold talks with them,” he said.

Earlier Abdullayev said that currently, the Azerbaijani side is waiting for the early parliamentary elections in Greece, adding that "after this election, we will discuss this issue [purchasing a share in DESFA] with the country’s new authorities. Currently, we have temporarily frozen the talks till the clarification of the issue related to the new government in Greece."

Baku is interested in purchasing a 66-percent stake in DESFA for 400 million euros. SOCAR declared its intent to buy a stake in DESFA, which plays a crucial role for Azerbaijan's energy company in the development of the TAP project – a part of the Southern Gas Corridor mega-project.

However, the agreement in 2013 to sell a majority stake in DESFA to the Azerbaijani company was stalled by a European Commission investigation in late 2014 over EU competition and energy security concerns. Currently, the deal is being considered by European Commission’s Directorate-General for Competition, and the procedure will last until late 2015.

Later in early 2015, the new Greek government announced that it would sell only 49 percent to SOCAR. The Azerbaijani side, however, countered that it sought to fulfill its originally intended 66 percent stake.

Azerbaijan's energy giant SOCAR, which is keen on expanding operations in the retail oil products market abroad is involved in exploring oil and gas fields, producing, processing, and transporting oil, gas, and gas condensate, marketing petroleum and petrochemical products in the domestic and international markets, and supplying natural gas to industry and the public in Azerbaijan.

SOCAR includes Azneft (companies producing oil and gas offshore and onshore), Azerkimya (chemical industry) and Azerigas production associations.

Three production divisions, two oil refineries and one gas processing plant, an oil tanker fleet, a deep water platform fabrication yard, two trusts, one institution, and 22 subdivisions are operating as corporate entities under SOCAR.