SOCAR meets EU half way, but fights for Greek gas market

SOCAR has decided to meet the European Commission half way to buy half of bloc of shares of DESFA Greek gas distribution company.

“We are ready to discuss sale of 16% shares out of 66% shares of the Greek company with the European companies,” SOCAR President told journalists at the end of last week.

On September 17, 2015 Greek Ekathimerini newspaper wrote that ill the end of September 2015 SOCAR to decide which European company or companies will buy 17% shares of DESFA companies. Among the main pretenders are Belgian Fluxys, Dutch Gasunie and Italian Infrastrutture Trasporto Gas and Snam Rete Gas.

On July 31, 2013 Hellenic Republic Asset Development Fund (HRADF) approved the deal on purchase of 66% shares of Greek DESFA by SOCAR for 400 million Euro. In December 2013 SOCAR signed the contract on purchase-sale of shares and the contract between the shareholders with HRADF and Petroleum company. SOCAR will buy 31% shares of DESFA from Greek government and 35% shares from Hellenic Petroleum SA.

According to the Greek law and the EC Third Gas Directive, the European Commission must make a final decision on this deal.

In November 2014 European Commission (EC) announced that it has started deep investigation of compliance of the deal to buy shares of Greek DESFA by SOCAR with the EU Merger Regulations. EC must make a final decision on this issue till the end of 2015.

According to unofficial information, EC did not approve the deal, because SOCAR is the state company and that in the future it will become a partner of the transport sector of the gas market and supplier of gas to the market. For this reason EC has offered to reduce SOCAR’s share at the Greek gas distribution market.—0-