Greece keen on agreement with SOCAR over DESFA

/By AzerNews/

By Aynur Karimova

Azerbaijan and Greece have made a significant step towards the sale of a package of shares of DESFA gas transportation system operator to Azerbaijan's state energy giant SOCAR.

The move could push $400 million to the Hellenic country, greatly assisting its ailing economy and presenting prospects for the development of the Trans-Adriatic Pipeline.

Panos Skurletis, Greece’s Minister of Industrial Reform, Environmental Protection, and Energy, has stated his government's positive take on energy cooperation with Azerbaijan.

He discussed the sale of a package of shares of DESFA to SOCAR in a meeting with SOCAR Energy SA Greece director general Anar Mammadov on August 13, and prospects for TAP in a meeting with Ian Bradshaw, the managing director of the TAP consortium, Michael Hoffman, the external affairs director, and Rikard Scoufias, TAP Country Manager for Greece.

The protracted Greek crisis, which has almost became a noose around the country's neck, is moving slowly toward a resolution. The events in Athens are being carefully watched in Azerbaijan, the South Caucasus’s most developed economy, as Baku is interested in purchasing a 66-percent stake in DESFA for 400 million euros.

The conditions in Greece also give the green light for Azerbaijan’s purchase. A Greek Parliament backed an agreement between Athens and its international creditors – the European Central Bank, the International Monetary Fund, and the European Commission – concluded on August 11. The bill, supported by the Greek Parliament, envisages several points regarding privatization plans for the country.

Privatization of state property in Greece is the main point of the agreement to which Azerbaijan pays special attention. Many months ago, SOCAR declared its intent to buy a stake in DESFA, which plays a crucial role for Azerbaijan's energy company in the development of the TAP project – a part of the Southern Gas Corridor megaproject.

However, the agreement in 2013 to sell a majority stake in DESFA to the Azerbaijani company was stalled by a European Commission investigation in late 2014 over EU competition and energy security concerns.

Later in early 2015, the new Greek government announced that it would sell only 49 percent to SOCAR. The Azerbaijani side, however, countered that it sought to fulfill its originally intended 66 percent stake.

Currently, it seems that the cabinet of Alexis Tsipras has stopped bluffing and is keen on real action to take the country out of the crisis. The resumption of talks over DESFA and the approval of reforms is a clear signal that the government in Athens will be more prudent and productive.

And it in turn means that an agreement with Azerbaijan worth $400 million could get off the ground very soon. The only thing left is to wait for a decision from the European antitrust authorities.