SOCAR SUBMITTED PROPOSALS ON DESFA PRIVATIZATION FIRST

Greek Privatization Agency (HRADF) reported that on Monday State Oil Company of Azerbaijan (SOCAR) submitted the proposals for privatization of 60% shares of DESFA, operator of Greek gas transportation system, first, reported RIA Novosti.

“At the next session the Board of Directors of HRADF will make a decision on the validity of SOCAR’s proposal, considering recommendations of financial and juridical experts and after that execution of the financial proposal will begin,” reads the press release released on Monday evening.

HRADF did not receive any proposals concerning privatization of the state-run gas corporation DEPA. HRADF through cooperation with Hellenic Petroleum, which owns 35% shares of DEPA, will evaluate all possible solutions as soon as possible, reported the Privatization Agency.

Sale of DEPA and DESFA is among the key points of the Greek privatization program and Greece hoped to receive up to 1.5 billion Euro from their sale. It was announced later that Russian Gasprom company, which was considered the main pretender to DEPA purchase, decided to withdraw its proposal. Gasprom’s representative explained that the company failed to receive enough guarantees that DEPA’s financial situation will not get worse by the moment of closure of the deal, considering there are significant risks affecting the company’s value.

The Greek consortium M&M Gas (joint company of Mitilineos and Kopeluzos groups) also pretended to purchase of DEPA, but failed to submit the proposals. Negusneft, which is a part of Russian Synthesis group, and Greek GEK Terna S.A. company through cooperation with the Czech PPF Investment Fund, have also refused to take part in the bid for DESFA purchase.

The Greek authorities have already said that Gasprom could take part in the new bid for DEPA sale, if it wishes to do that.-0—