Greenlight for SOCAR in Europe
By Gulgiz Dadashova
Paving a path into the European retail gas distribution market will be a big step for the state energy giant, SOCAR.
A signed deal with Albania will open up a new direction of Azerbaijani national company’s activity in Europe.
SOCAR, which is involved in exploring oil and gas fields in Azerbaijan, enjoys a huge experience in the gasification process and management of gas distribution networks in Azerbaijan and Georgia.
Now the company is expected to build up a new infrastructure in Albania, where gas distribution infrastructure is not developed enough. Albania is predominantly mountainous country, with 70 percent of its territory at elevations of more than 300m. So, SOCAR’s experience will be of high importance as in Azerbaijan even the mountains villages have been provided with gas.
Damian Gjiknuri, Albanian Energy and Industry Minister highlighted the fact that Albania will be the real beneficiary of gas in the future, adding that the Trans Adriatic Pipeline is a very important project for Albania and "the country’s companies should be active in this field."
"The purpose of this agreement is to launch gas cooperation between two sides. Our country is the real beneficiary of this project. Also, this means diversification of energy sources and greater stability in this sector," said Gjiknuri.
Being one of the most rapidly developing energy companies in the world at a time when major international companies are hit by global tendencies arising from the low energy revenues, SOCAR will not only supply gas to Europe but will remain engaged in its distributing within the Euro area.
Thus, Azerbaijan, will not only supply gas to Albania via the TAP, but also will manage gas distribution in the Albanian market. SOCAR will set the trend in gas sales in the market, which means big profits.
SOCAR Vice-President Elshad Nasirov pointed out earlier that SOCAR’s contribution to Europe is not confined to energy security only. “We are prepared to be one of the biggest non-EU investors in the EU.”
Nasirov urged the EU to provide strategic support to non-European investors remembering the EU’s check on the impending deal on SOCAR acquisition of the Greek gas transportation operator DESFA.
SOCAR earlier said that the final approval of the deal worth of $400 million on acquisition of 66 percent share by the company in DESFA is expected to be made before March 23. This comes as the final date has been extended until April 22.
The whole natural gas distribution system of Greece will be in SOCAR's hands in case the deal is approved and eventually it will strengthen its role in southern Europe's gas supply system.
Despite the fairly huge burden on SOCAR as a member of the major energy projects, the company continues its policy of investing in promising projects outside of Azerbaijan.
SOCAR President Rovnag Abdullayev said earlier that there are many projects that SOCAR can invest in. This proves once again that the company has strengthened its position and become one of the high-grade and competitive participants in the international energy market.
SOCAR joint ventures, consortia, and operating companies are engaged in business in different parts of the petroleum industry. SOCAR has representative offices in Georgia, Turkey, Romania, Austria, Switzerland, Kazakhstan, Great Britain, Iran, Germany and Ukraine and trading companies in Switzerland, Singapore, Vietnam, Nigeria, and other countries.
Subsidiaries as well as joint venture companies of SOCAR have been established in Turkey, Georgia, Ukraine, Romania and Switzerland, UAE and Saudi Arabia. They are operating in different areas such as investment, production, refining as well as retail business.