Azernews.Az

By Aynur Jafarova

Azerbaijan's state energy company SOCAR announced that it has reached an agreement to acquire a 66 percent stake of Greece's gas transportation system operator DESFA.

The agreement was reached with the Hellenic Republic Asset Development Fund (HRADF). Advisory teams of both SOCAR and HRADF are currently working on the final technical matters of the deal.

According to SOCAR head Rovnag Abdullayev, the decision on purchasing DESFA is in line with the existing high-level bilateral relationship between Greece and Azerbaijan as well as SOCAR and the leading energy companies of Greece.

"SOCAR, which has vast experience with natural gas pipeline systems in the Caspian region, is keen to start working in Greece as our first project of this type in the European Union countries," he said.

SOCAR is quite optimistic about the future of cooperation, according to Abdullayev.

Earlier Abdullayev said the acquisition of Greek assets means SOCAR's access to the gas distribution market.

The process of selling Greek gas company DEPA and DESFA is considered one of the key points of the Greek privatization program. Greece is expected to receive up to 1.5 billion euros from the sale. However, it has been reported that Russian giant Gazprom, which was deemed as the main contender for purchasing DEPA, decided not to make a binding offer. A representative of the gas holding said that Gazprom has not received sufficient guarantees that DEPA's financial situation will not deteriorate by the end of the transaction.

The contestants were to submit offers to purchase DEPA and DESFA on June 10. However, of the five participants only SOCAR submitted an offer.

DEPA Holding is engaged in wholesale and supply of natural gas to major customers. Through its subsidiary DESFA the holding owns the national gas transportation network and re-gasification terminals. Also, DEPA owns 51 percent of the companies on the retail sale and deliveries of natural gas to small and medium businesses and private customers in Greece.