Baku Energy Forum - Greece approves new tender process for DESFA

Greece approves new tender process for DESFA


Greece’s Government Council for Economic Policy (KYSOIP) has approved the process of a new tender for the privatization of the country’s DESFA natural gas grid operator, Greek media reported.

Reportedly, the approval was announced in the Greek parliament.

The new tender to be conducted by Greece's privatization agency HRADF envisages sale of 66 percent of the gas grid operator.

Azerbaijan’s state oil company SOCAR won a tender in 2013 on the purchase of a 66-percent stake in DESFA for 400 million euros.

The Azerbaijani company intended to obtain a 31-percent stake from the Greek government and to buy a 35-percent stake in Hellenic Petroleum.

It was expected that the deal will be closed only after the purchase of at least a 17-percent stake out of SOCAR’s 66-percent by Italy’s Snam.

SOCAR, Snam and Greek government have been holding intensive talks against the background of changes in legislation that affected DESFA’s financial position and market value.

However, the parties were unable to reach an understanding and consequently, the deal was terminated Nov. 30.