SOCAR Still Eyes DESFA But With A 66% equity stake
Talks on the sale of DESFA, Greece's natural gas grid operator, to Azeri state-owned SOCAR, will re-start in August while further developments remain uncertain.
The newly appointed Greek Minister for Production Reconstruction, Environment and Energy Panos Skourletis announced that he will soon meet with SOCAR officials to discuss the deal.
According to reports, he said that SOCAR “seems to be maintaining their interest” in DESFA, despite developments since the summer of 2013, when the state-run company submitted a €400 million offer to acquire a 66% equity share in it.
The EC Directorate-General for Competition launched an in-depth investigation on the matter last November, then later in January, 2015, four days ahead of Greece’s snap elections suspended its deadline on the check.
SOCAR boss Rovang Abdullayev confirmed recently that the company still is interested in acquiring a DESFA stake.
“It is not our problem, it is a problem between Greece and EU regulating authorities. We won a tender and have been waiting [ European Commission approval ]….,” he said in televised interview with a local broadcasting company.
After leftist Syriza-led coalition came to power in January, now former energy minister Panayiotis Lafazanis said the new government opposes the DESFA sale.
It seems that the Greek government’s position on energy networks privatization remains the same - to keep it under state control, which implies a 51% stake in DESFA.
However, the deal cannot stay in current position forever. The deadline has been approaching for SOCAR’s letter of guarantee that expires in August.
The Azeri company will either apply for a further extension of indemnity letter concerning the agreement’s completion that was signed two years ago or abandon it.
According to reports, the Greek government is willing to sell SOCAR for only a 49% share of the gas network operator instead of the earlier agreed up 66%.
Greece’s energy news portal energypress.eu suggested the possible scenario that involves a two-step process.
It was suggested for SOCAR to acquire a 66% stake in DESFA with the later selling back of a 17% equity share.
However, SOCAR officials do not agree with idea of getting less DESFA shares than it was originally agreed.
SOCAR won a tender for the purchase of 66% stake in the Greek company and expects to purchase a specified number of shares, commented SOCAR’s Rovnag Abdulayev on the idea.
Other high ranking officials from the company that prefer to stay anonymous were even more specific saying that from the beginning the idea was to become a decision maker for the company.
“We were entered into bidding for DESFA considering a controlling package. Nothing change for us,” the other sources said.
It is not only gas pipeline network but Revythousa LNG import terminal that SOCAR interested to operate considering a future gas export expansion to Europe.
“The major stake in Greece gas network operator means also major investments and even bigger responsibilities. We have experience in development gas transmission system in Georgia,” said other SOCAR sources.
There are rumours on a possible joining of the Greek company to the Trans Adriatic Pipeline (TAP) that will help to deliver Azeri gas to Europe in exchange of a SOCAR stake acquisition in DESFA.
Earlier Rovnag Abdullayev said that Greek companies expressed their interests to join TAP with Norway’s Statoil considering selling its 20%.
“The market price for 20 percent in TAP is estimated in €400. The same amount is nominated for privatization of 66% stake in DESFA,” the industry sources said. SOCAR declined to comment.
Kama Mustafayeva