Azerbaijan’s state oil company SOCAR has acquired EWE Turkey Holding, owned by the German energy company EWE AG, Trend reports with reference to the company Jan. 30.
Together with the holding, SOCAR acquired the holding’s assets - Bursagaz, Kayserigaz, Enervis, EWE Enerji and Millenicom. The deal will be completed after approval by an anti-monopoly authority and other responsible structures of Turkey.
SOCAR President Rovnag Abdullayev said that the acquisition of the holding will allow SOCAR to enter the end-user market directly.
Abdullayev said that the acquisition of gas distribution business will complement the investment chain of SOCAR in Turkey. Entering Turkey’s gas distribution market is a strategic step from a commercial point of view and completes the entire chain of production, transportation and distribution of gas, he noted.
He said that since 2013, SOCAR has been annually supplying 1.2 billion cubic meters of gas to Turkey, and the commissioning of TANAP last year created favorable conditions for the gas supply to Turkey.
“We will continue exploring other opportunities in the market,” Abdullayev added.
Earlier, EWE AG told Trend that the decision on the possible sale of its assets in Turkey is related to the optimization of the company's activity.
EWE Turkey Holding has been operating in Turkey since 2007 and is the fourth biggest supplier of natural gas in Turkey. In 2017, the company’s turnover amounted to almost 2.4 billion Turkish liras.
SOCAR is represented in Turkey by its subsidiary SOCAR Turkey Energy. So far, SOCAR Turkey Energy has invested over $14 billion in the Turkish economy. Meanwhile, 5,000 people work in the company, while the annual export potential reaches $3 billion. Among SOCAR’s current assets in Turkey are the Petkim petrochemical complex, the STAR refinery and the Petlim port.
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