Azernews.Az

By Gulgiz Dadashova

Azerbaijan's energy giant SOCAR announced that it will continue to cooperate constructively with the European Commission to complete the process of acquisition of the Greek gas transmission system operator DESFA within the earliest possible period.

The company made the statement following the launch of in-depth investigation by the European Commission to assess whether the proposed acquisition of DESFA by SOCAR meets the EU Merger Regulation.

The Commission announced that it aims to ensure that the sale of DESFA does not result in competitive harm and ultimately higher gas prices for consumers in Greece.

"In the context of the recent notification by SOCAR to the EU competition authorities of its proposed acquisition of a 66% stake in DESFA, the Greek gas transmission system operator, SOCAR now understands that the Commission is opening a "Phase II" in-depth investigation into the proposed transaction," SOCAR said in its statement.

"SOCAR appreciates the time, effort and resources that the Commission Services have dedicated and will continue to dedicate in this process."

The opening of an in-depth inquiry does not prejudge the outcome of the investigation. The Commission should take a decision until 23 March 2015.

DESFA owns and operates Greek's sole high-pressure gas transmission and Greece's only LNG terminal and mainly transports gas through its network. The sale of Greek gas company DEPA and DESFA was considered as one of the key points of the Greek privatization program. SOCAR had offered 400 million euros to secure a majority stake of up to two-thirds in DESFA.

SOCAR and the Hellenic Republic Asset Development Fund (HRADF), the company 'Petroleum' signed an agreement last December to acquire 66 percent of shares in DESFA.

SOCAR 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.

The company annually invests billions of dollars in transport infrastructure and is involved in key projects designed to increase Europe's energy security.

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