Greek Energy Minister Panagiotis Lafazanis declared a halt to stop privatization of the State Energy Corporation, Independent Operator of Energy Transportation and the Greek Oil and Gas Company a few days ago. The State Oil Company of the Azerbaijan Republic (SOCAR) purchased 66% of DESFA shares for 400 million euros as the winner of a tender in June 2013. The European Commission has not approved the purchase yet.
Baku considers DESFA the key element of the Trans-Adriatic Pipeline (TAP) project for transportation of gas from the Shah Deniz Field to Southern Europe through Turkey and Greece. The EU anti-monopoly authorities started checking the purchase deal in November 2013. European functionaries feared that it would be a blow to competition on the gas market of Greece, and violate the third energy package forbidding gas extractors from owning gas pipelines of the European Union.
Commenting on SOCAR’s purchase, Minister Lafazanis said that the government will wait for a decision from the European Commission before taking any further steps.
Ilham Shaban, the head of the Center for Oil Research, describes Brussels’ position towards Azerbaijan as inadequate. He reminded that the deal had been made before the adoption of the third energy package. SOCAR took part in the tender back in 2011 and passed all the procedures in 2013. In his words, SOCAR should have taken control of the Greek company already in February 2014. Shaban dismisses all the accusations about violation of the third package as invalid. He noted that Azerbaijan did not own 100% of any international energy projects to be accused of a monopoly. The expert added that SOCAR owned only 10% of Shah Deniz shares and was not an operator. The South Stream consists of three different pipeline consortiums. The analyst believes that the economic crisis in Greece had an impact on Azerbaijan’s interests in projects in Greece. Greece owes European banks debts that need to be paid by 2020. The head of SOCAR said in December, according to Shaban, that the project was even more important for the EU and Greece than Azerbaijan.
Greek Energy Minister Panagiotis Lafazanis declared a halt to stop privatization of the State Energy Corporation, Independent Operator of Energy Transportation and the Greek Oil and Gas Company a few days ago. The State Oil Company of the Azerbaijan Republic (SOCAR) purchased 66% of DESFA shares for 400 million euros as the winner of the tender in June 2013. The European Commission has not approved the purchase yet.Baku considers DESFA the key element of the Trans-Adriatic Pipeline (TAP) project for transportation of gas from the Shah Deniz Field to Southern Europe through Turkey and Greece.The EU anti-monopoly authorities started checking the purchase deal in November 2013. European functionaries feared that it would be a blow for competition on the gas market of Greece, violate the third energy package forbidding gas extractors to own gas pipelines of the European Union.Commenting on SOCAR’s purchase, Minister Lafazanis said that the government will wait for a decision from the European Commission before making any further steps.Ilham Shaban, the head of the Center for Oil Research, calls Brussels’ position inadequate towards Azerbaijan. He reminded that the deal had been made before the adoption of the third energy package. The SOCAR took part in the tender back in 2011 and passed all procedures in 2013. In his words, SOCAR should have taken control of the Greek company already in February 2014.Shaban discards all the accusations about violation of the third package as invalid. He noted that Azerbaijan did not own 100% of any international energy projects to be accused of monopoly. The expert added that the SOCAR owned only 10% of Shah Deniz shares and was not an operator. The South Stream consists of three different pipeline consortiums.The analyst believes that the economic crisis in Greece had impact on Azerbaijan’s interests in projects in Greece. Greece owes European banks debts that need to be paid by 2020. The head of the SOCAR said in December, according to Shaban, that the project was even more important for the EU and Greece than Azerbaij
