SOCAR, the state energy company of Azeri, has begun negotiations with the Greek government as to the buyout of the country's natural gas grid operator DESFA. This comes after the only bidder had failed to submit a proper tender for the sale.

According to SOCAR President Rovnag Abdullayev, "The tender procedure on the privatization of DESFA is over and SOCAR has started talks with the Greek government." He made the remarks to reporters last Saturday.

He added, "It means that the whole natural gas distribution system of Greece will be in our hands soon."

Other interest bidders, Sintez, Russian energy firm and PPF-Terna, the Greek-Czech group has withdrawn for the race for DESFA. Both pulled out in early June, thus leaving SOCAR as the sole remaining bidder for the company.

Should SOCAR be able to acquire the Greek assets, Abdullayev said that this 'would strengthen th export potential of SOCAR."