Azerbaijan, Israel establish JV

The State Oil Company of Azerbaijan (SOCAR) and Israel's Union Energy & Systems A Ltd have created a joint venture, Union Energy & Systems Operations Malta Ltd., Report informs referring to the Malta Competition and Consumer Affairs Authority (MCCAA).

"The MCCAA has approved the decision of SOCAR and Union Energy & Systems A Ltd to establish a joint venture in Malta, Union Energy & Systems Operations Malta Ltd. The regulator made this decision on April 3 this year as part of the simplified merger review procedure," the report says.

SOCAR and Union Energy & Systems A Ltd will exercise joint control in the joint venture. The joint venture will focus on the development and exploitation of natural gas, using SOCAR's expertise in the field of production and transportation. The notification of the joint venture was submitted to the MCCAA on March 11.

The deal was formalized through a share subscription agreement.

"After reviewing the transaction, the Competition Authority concluded that it complies with the simplified procedure and does not violate antitrust laws. Thus, the regulator does not object to the creation of the joint venture and recognizes it as legal," the information says.

Union Energy & Systems A Ltd is a private company registered in Malta and wholly owned by businessman Aaron Frenkel. The company operates in the natural gas sector through subsidiaries.

SOCAR operates at all stages of the oil and gas chain - from exploration and production to refining and supply. In Malta, SOCAR is represented by liquefied natural gas (LNG) projects. On January 31, 2025, SOCAR signed an agreement with Union Energy to acquire a 10% stake in the Tamar project, one of the largest offshore gas fields in the Mediterranean, located off the coast of Israel.

In addition, on March 17, 2025, SOCAR and Union Energy signed a memorandum of understanding on joint gas exploration in Israel's Exclusive Economic Zone (EEZ).