Gas: Greece,Socar agree to speed up completion of DESFA deal

 AnnaLindh Foundation @AnnaLindh Thursday, 2 October 2014 | 15:59

Gas: Greece,Socar agree to speed up completion of DESFA deal

...."energy cooperation between Greece and Azerbaijan, a strategic cooperation between his country and the European Union and the role of Greece as an entry gate of Azeri energy raw materials to the EU, amidst a crisis in the Ukraine. The two sides agreed on the need to avoid any delays in Bruxelles for the completion of the transaction. Greece has agreed to sell 66% of DESFA to Socar for 400 million euros. The transaction needs approval from the European Commission. Referring to the TAP pipeline, Greece and Azerbaijan agreed on the importance of the South Corridor of natural gas towards improving the EU's energy safety..."

17 June, 09:42

(ANSAmed) - ATHENS, JUNE 17 - Speeding up procedures for the approval of the transfer of a majority stake in DESFA (Natural Gas System Operator) to Socar and the beginning of construction works of a Trans Adriatic Pipeline (TAP) natural gas network according to set timetables, were the focus of talks held on Monday on the occasion of an official visit by Azeri President Ilham Aliyev to Athens. As Ana-Mpa reports, in his meetings with President of the Republic Karolos Papoulias, Prime Minister Antonis Samaras and Foreign Minister Evangelos Venizelos, Aliyev discussed energy cooperation between Greece and Azerbaijan, a strategic cooperation between his country and the European Union and the role of Greece as an entry gate of Azeri energy raw materials to the EU, amidst a crisis in the Ukraine. The two sides agreed on the need to avoid any delays in Bruxelles for the completion of the transaction. Greece has agreed to sell 66% of DESFA to Socar for 400 million euros. The transaction needs approval from the European Commission. Referring to the TAP pipeline, Greece and Azerbaijan agreed on the importance of the South Corridor of natural gas towards improving the EU's energy safety. The pipeline will transport natural gas from Shah Deniz field in Azerbaijan through Turkey, Greece and Albania to Italy, while talks also focused on the possibility of supplying other countries in the region through a vertical Greek-Bulgarian pipeline (IGB) promoted by DEPA. The TAP pipeline will have an initial transport ability of 10 billion cubic meters of gas annually, with the investment in the Greek part of the pipeline (with a length of 870 km) totaling 1.5 billion euros. The project will create 2,000 direct and 10,000 indirect job positions. TAP's shareholders are BP (20%), Socar (20%), Statoil (20%), Fluxys (16%), Total (10%), E.ON (9%) and Axpo (5%).

(ANSAmed).

Azerbaijan's Socar signs deal to buy 66% of Greece's gas grid operator DESFA

Moscow (Platts)--23Dec2013/617 am EST/1117 GMT


Azerbaijan's state-owned oil and gas producer Socar over the weekend signed an agreement to buy a 66% stake in Greece's gas transmission operator DESFA for a total of Eur400 million ($547 million).

The move strengthens its role in southern Europe's gas supply system.

Socar bought a 35% interest in DESFA from Greece's oil, gas and power company Hellenic Petroleum and a 31% interest from the Hellenic Republic Asset Development Fund, Socar and HRADF said in separate statements, with both adding the deal is pending approval from relevant national and EU authorities.

The Greek state controls the balance 34% stake in DESFA.

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Socar, the Hellenic Republic and HRADF signed a separate agreement on the administration of DESFA after the stake deal is completed, HRADF said.

"The signing of these agreements will lead to the injection of additional investment capital necessary for the modernization and strengthening of the competitiveness of [Greece's] energy sector," it said.

The deal will also increase Azerbaijan's role in strengthening European energy security, Socar said in its statement.

Greece launched the privatization of 66% of DESFA and 100% of gas company DEPA in February 2012 in an effort to raise funds for its struggling economy.

DEPA has yet to be privatized.

Socar and its partners in the major Shah Deniz gas project offshore Azerbaijan signed the final investment decision for the project's phase two in mid-December, which aims to increase energy security in Southern Europe and Turkey. Phase two is expected to supply 16 billion cubic meters/year of gas to the international market; 10 Bcm/year to Europe and 6 Bcm/year to Turkey.

DEPA is among the buyers of the future volumes, along with Switzerland's Axpo Trading, Bulgargaz, Italy's Enel, Germany's E.ON, Spain's Gas Natural, France's GDF Suez, Italy's Hera Trading, and Shell.

The gas volumes will be supplied to Europe through the so-called Southern corridor that comprises the expanded South Caucasus Pipeline via Azerbaijan and Georgia, the future Trans Anatolian Gas Pipeline across Turkey, and the future Trans Adriatic Pipeline running across Greece, Albania and into Italy.

From January 1, BP is set to hold a 28.8% operatorship stake in the Shah Deniz project, while Socar will hold 16.7%, Statoil 15.5%, Total 10%, Lukoil 10%, Iran's Nico 10% and Turkey's TPAO 9%.

--Dina Khrennikova, dina.khrennikova@platts.com
--Edited by Wendy Wells, wendy.wells@platts.com