State Oil Company of Azerbaijan's Turkish subsidiary sells gas distribution business in country to local company

BAKU. Jan 13 (Interfax) - SOCAR Turkiye Enerji, the State Oil Company of the Azerbaijani Republic (SOCAR)'s Turkish subsidiary, has signed an agreement to sell its gas distribution companies Bursagaz and Kayserigaz to the Turkish company AKSA Energy.

"SOCAR Turkiye, the largest foreign investor in Turkey and an integrated industrial group, has completed the process of signing an agreement to sell its gas distribution networks Bursagaz and Kayserigaz to AKSA Enerji. After the sale process is completed, these companies will be managed by the new owner," SOCAR Turkiye Enerji said in a statement.

"We are proud to have fulfilled our promise to provide natural gas to all the settlements in the areas served by Bursagaz and Kayserigaz. These companies have attracted investor interest due to their advanced infrastructure. The decision to sell aligns with our long-term strategic goals," SOCAR Turkiye Enerji CEO Elchin Ibadov said when commenting on the deal.

Ibadov previously said that the company was considering several interesting proposals related to the sale of this business.

Total investments in the Kayserigaz and Bursagaz gas distribution networks amounted to $209 million, he said. The length of Bursagaz's gas distribution network is 7,703 km, while Kayserigaz's is 7,118 km. The number of Bursagaz subscribers is 1.2 million and Kayserigaz has 700,000 subscribers. In November 2024, Turkey's Bloomberg HT television channel, citing a statement by SOCAR Turkiye Enerji, said that the company intended to sell its gas distribution business in Turkey.