Industry and Energy

Home page

Industry and Energy

DESFA privatization tender cancelled - SOCAR

01 December 2016 15:43 (UTC +04:00)

SOCAR told APA-Economics that SOCAR, HRADF and Hellenic Petroleum SA decided not to extend the period for privatization of DESFA’s 66% share: “On June 21, 2013, HRADF declared SOCAR as the winner of tender on DESFA privatization. In the past two years, SOCAR worked to achieve confirmation of privatization by Greece and EU, fulfilment of relevant requirements and invitation of potential buyers to participate in DESFA”.

Moreover, SOCAR, SNAM and sellers held intensive talks to find an acceptable solution on the background of recent amendments to the legislation of Greece which affect DESFA’s financial situation and market value: “The negotiations were held friendly. Greek government and sellers always shared supportive and cooperative position regarding the agreement. However, the sides could not reach agreement on mutual acceptable commercial mechanism meeting interests of the investors and sellers. Consequently, on November 30, 2016, the tender was cancelled”.

SOCAR said the cancellation will not affect the future investments in the region and Greece.