Opposition Questions Plans to Merge State Energy Companies
Opposition New Rights party questioned the Economy Ministry’s plans to merge three state-run companies – Georgian International Gas Corporation (GIGC), Georgian International Oil Corporation (GIOC) and Georgian state oil company SakNavtobi – and alleged that move aims at privatization of shares of this new conglomerate.
“We think the only real reason behind this decision is to sell trunk gas pipeline. In was impossible to privatize the gas pipeline system due to public pressure, but after merger of these companies it will become easier for the authorities to sell these pipelines,” the Georgian daily Rezonansi quoted MP Irakli Iashvili of the New Rights party as saying on March 21.
The Georgian International Gas Corporation (GIGC) manages the gas pipeline system in the country. The Georgian International Oil Corporation (GIOC) mainly deals with issues of oil transportation via Georgia. The Georgian state oil company – SakNavtobi – is engaged in oil and gas exploration, extraction, exploitation, processing and sales.
The Georgian Economy Ministry denies opposition’s allegations and cites the need to increase the efficiency of these companies as the reason behind the merger.
In an interview with Rezonansi on March 20 regional analysts Zeyno Baran, who is Director of International Security and Energy Programs at the Washington-based Nixon Center, also questioned the Georgian authorities’ this decision and said that united company will be more vulnerable to Russian Gazprom’s attempts to control the country energy sector.
