CASPIAN OIL & GAS - US official discusses DESFA privatization in Athens

US official discusses DESFA privatization in Athens


Greece’s Minister of Environment and Energy Panos Skourletis and US Special Envoy and Coordinator for International Energy Affairs Amos Hochstein in Athens discussed the Southern Gas Corridor and TAP projects in Athens July 15, RIA Novosti reported. 

The sides also exchanged views on the privatization of the Greek natural gas transmission network operator (DESFA).

Currently, the Directorate-General for Competition of the European Commission is considering the issue on privatization of DESFA. On July 31, 2013, the Hellenic Republic Asset Development Fund approved the transaction on purchase of 66% of DESFA shares by SOCAR for €400 mln.

In December 2013, SOCAR and Greece's state privatization fund and Petroleum companies signed Contract on Shareholders and the Share Purchase Agreement (SPA). SOCAR purchases 31% share of DESFA from Greek government, 35% from Hellenic Petroleum SA. HRADF will control share package of the DESFA prior to the SOCAR takes over control on it.

It was suggested for SOCAR to acquire a 66% stake in DESFA with the later selling back of a 17% equity share.