SOCAR hopes for compromise on DESFA

Izmir. 8 September. REPORT.AZ/ The State Oil Company of Azerbaijan Republic (SOCAR) is waiting for proposals from the Greek government for successful completion of the agreement for purchase of Greek network operator DESFA shares as part of the privatization. Report informs, Anar Mammadov, SOCAR Energy Greece CEO said at a meeting with Azerbaijani reporters in Turkey. He noted that, SOCAR may not be ready to continue the privatization under new conditions, new circumstances, and made an offer to another party to compromise.

"In July, at the initiative of energy minister, Greek government have made a couple of changes in the legislation. It has a chilling effect on rates of DESFA. In our opinion, DESFA’s value decreased by 50%. In case these changes will remain, this project under the new conditions and new terms will not be so interesting for us. We expressed our position to the Greek government. Greece has offered to find a compromise with another side. We are waiting for proposals of the Greek government. If Greece keen to complete the privatization, we hope that we will be given some proposals", A. Mammadov added.

A. Mammadov expressed an interest in DESFA, said they wanted to continue to cooperate: "Another side thinks that these changes can be more useful for regional gas market, this is a decision of Greek government and we will not argue with them. Our demand is very simple - we are interested in the privatization and want to complete the process, but the conditions have to be logical from a commercial point of view. All issues related to DESFA now depend on the Greek authorities. We are ready to fulfill our obligations under the tender. But we are ready to do this on the same terms. In a new situation it would create difficulties for us", CEO said.