SOCAR: EU, Azerbaijan Have Similar Energy Interests

On November 19, SOCAR President Rovnag Abdullayev gave an interview to Greece's İmerissia newspaper. The interview states:

• I would very much appreciate it if I could have a comment about how SOCAR views this development (the announcement for phase II) and how it plans to react to it. 
• The fact that the European Commission decided to take the merger review of SOCAR’s acquisition of DESFA into Phase II is not at all exceptional and such developments are often seen in EU merger control procedures. SOCAR appreciates the time, effort and resources that the Commission Services have dedicated and will continue to dedicate in this process. We will continue to cooperate constructively with the Commission to complete the process within the earliest possible period. 

Would you consider backtracking from the agreement in case the European Commission demands additional concessions or commitments from your part? 

• SOCAR has always made its best efforts for the transaction’s approval, and these efforts have been welcomed by both the Greek government and the European Commission, so we are confident that the Phase II investigation will satisfy the requests of DG Competition. At this time, there is no point to raise hypothetical issues, which might never occur. 

Do you see this as a negative development for the Greek-Azeri economic relations? 

• As stated by the leadership of both countries on several occasions, Greece is a good friend and a reliable strategic partner of Azerbaijan and this relationship is certainly not limited only to the oil and gas industry, but rather keeps evolving in different dimensions in the most positive way. 
• The above is strengthened by the recent visit of SOCAR’s delegation and its meeting with the Greek Prime Minister Antonis Samaras on the 10th of November. The meeting was held in a cordial atmosphere and issues relating to the implementation of the TAP project and the completion process of the acquisition of 66% of the Greek National Gas Transmission System Operator DESFA were discussed during the meeting. 
• There are no reasons to presume that the current positive development in Azeri-Greek relations may change in a foreseeable future. 

Could it affect the TAP project and if so, in which way? 

• We hope that the acquisition of DESFA will be completed in due course and that all parties can benefit from successful partnership opportunities in the future. As you may be aware, TAP, being a consortium of major international companies, has independently signed a Cooperation Agreement with DESFA and the project is progressing very well in Greece. 

What are the prospects for SOCAR in Greece?

• The important element of the bilateral cooperation our countries is the partnership in the field of energy security, supply of natural gas from Azerbaijan to Greece and the mutually beneficial cooperation in the implementation of the international energy projects. We consider Greece a valuable partner and an important market. We believe that through our partnership Greece will further strengthen its geo-political position in the Southern Europe and will play an important role in forming an alternative energy corridor for the gas volumes going from East to West. In our view, Greece has everything it takes to become a regional gas hub and a major natural gas player in the region. 
• Our main aims are to facilitate and to strengthen our relationship with our existing counterparts and, at the same time, work towards development of future business opportunities in the region. 

Can Azerbaijan become a reliable partner for the EU in energy sector?

• In the field of energy, the EU and Azerbaijan share convergent interests and both could benefit from the integration of their respective energy markets, thereby enhancing the energy security of both sides. 
• The EU and Azerbaijan face common energy policy challenges. The diversification and security of energy supplies, the deepening of energy market reforms, the development and modernization of energy infrastructures, energy efficiency, energy savings and the use of renewable energy sources are key concerns for both parties. An enhanced energy cooperation between Azerbaijan and the EU could boost the necessary reforms and, together with an enhanced investment climate, facilitate the attraction of further investments. 
• From a historical perspective, Azerbaijan always has been and today is again re-shaping itself as a hub for global energy supply. As you may be aware, SOCAR is currently working on the development of a number of oil and gas projects together with 25 global companies. Amongst these projects I would like to highlight the Southern Gas Corridor project which will bring the gas, produced in the Shah Deniz 2 field, to Europe. A significant part of the 45 billion USD investment in the Southern Gas Corridor project, which includes such projects as the expansion of South Caucasus Pipeline, TANAP and TAP, is funded by SOCAR. This demonstrates our commitment towards the security of EU energy supply. 
• I would like to stress once again that SOCAR positions itself as a reliable energy partner of Europe. We truly believe that diversification of energy supply is one of the most important topics of today’s energy policy of the European Union, and SOCAR is here to support its European partners. 
• Thank you again for your interest in SOCAR.