SOCAR set to buy Georgian gas firm

Azerbaijani state oil company SOCAR could buy out a Georgian gas distribution company that will be sold after hopes were dampened for other foreign investors, Georgia’s media reported.

The decision to put KazTransGas Tbilisi on sale this spring came after Kazakh investors that are already working in the South Caucasus republic failed to strike a common ground with the Georgian government. Under the tender terms, all of the company’s 29 gas distribution networks except the ones operating in the capital Tbilisi will be sold.

But KazTransGas Tbilisi did not confirm the reports suggesting that Kazakh investors would withdraw from Georgia.

SOCAR’s representation in the neighboring country said the purchase of the company has yet to be discussed with the Georgian government.

The Azerbaijani oil company earlier participated in a relevant tender announced by Georgia’s economic development ministry.

SOCAR is already involved in a number of investment projects in Georgia, including construction of the Kulevi oil terminal on the Black Sea coast and establishment of a network on retail sales of oil products.*