Daniil Galitsky exclusively to Vestnik Kavkaza
A new oil and gas breakthrough for Azerbaijan: according to recent news in the energy world, the Greek government plans to sell DESFA Company to Azerbaijani SOCAR.
It was planned to conduct a tender on privatization of the state company DEPA which distributes gas in Greece and its branch DESFA in the first quarter of 2013. However, in February the prolongation of the process was announced. The most beneficial proposal was made by the Russian company Gazprom which offered $1.9 billion for the company’s assets. It was unlikely that some other company could compete with Gazprom, but such a generous offer caused concern in the EU and the USA. The reasons for the reaction are clear: Gazprom could significantly improve its positions in South-Eastern Europe after launching in the Greek gas market. It would greatly contribute to fulfillment of “South Stream” project. Along with the support of export of its own gas, the Russian side would have an opportunity to prevent gas export to the countries of the region from other states. That is why Gazprom offered such a huge sum.
However, on June 10th the representative of Gazprom Sergey Kupriyanov announced the official position of the company: “Gazprom didn’t get sufficient guarantees that the financial situation in DEPA Company wouldn’t become worse by the end of the deal. All processes of adjustment and formalization of the purchase can take a year after the end of the tender. At the moment the company has troubles with non-payments of consumers; it will undergo restructuring and separation of DESFA; the tender participants were not provided with guarantees of the regime of DEPA state management. It creates serious risks influencing the company value, while the deal price is demanded to be fixed today without consideration of the factors. Thus, it was decided not to ally for DEPA.”
So, due to economic reasons or under pressure of the western reaction, Gazprom refused from participation in the tender; other expected favorites of the competitions (Russian Negusneft and Greek consortiums Motor Oil and Mytilineos) didn’t apply as well. As the result, at the end of sending applications (on June 10th, 2013) Greece didn’t receive any obligatory offer on DEPA and only one on purchasing the operator of the gas transfer system DESFA. It was made by SOCAR.
Therefore, Azerbaijan is in one step from purchasing Greek assets which will enable SOCAR to improve its energy potential. Rovnag Abdullayev, SOCAR president, is optimistic about the deal: he told journalists that due to purchasing DESFA, Azerbaijan would control the gas market of one of developed European countries and get an opportunity to export gas to Greece. According to him, all matters have been settled. On June 15th the sides started negotiations in Geneva.
