Italy seeks supply guarantees in potential IP refiner sale to Azerbaijan's SOCAR, sources say

By Giuseppe Fonte and Francesca Landini

ROME (Reuters) - -Italy is seeking guarantees on fuel supply security from the Azeri government if the founding family of Italiana Petroli agrees a sale to Azerbaijan's state energy company SOCAR, two sources said on Thursday.

IP's private owner, the Brachetti Peretti family, is seeking an enterprise value of around 2.5 billion euros ($2.93 billion) for the refiner, separate sources previously told Reuters, and is currently in negotiations with SOCAR.

An Abu Dhabi investor has also expressed interest in buying the refiner, according to the same sources.

The Azerbaijan government and SOCAR were not available to comment on the issue outside business hours. IP did not immediately respond to a request for comment.

IP has refining capacity of around 200,000 barrels per day and owns more than 4,500 petrol stations, one of Italy's largest pump networks.

The Italian government's so-called golden power grants it special influence in deals involving critical assets, including energy companies and refineries, and allows it to set conditions before clearing their sale.

The two sources said Italian authorities had approached SOCAR and the Azeri government seeking guarantees regarding the continuation of supplies and the protection of jobs.

Rome and Baku maintain good diplomatic relations, and Azerbaijan is an important gas supplier for Italy via the Trans Adriatic Pipeline.

Earlier this year Azerbaijan's Baku Steel Company expressed interest in Italy's largest steel company, Acciaierie d'Italia, but it failed to finalise a comprehensive deal with Rome, prompting the government to reopen the tender process.

If finalised, a deal for IP would follow the sale by Italy's Moratti family of its controlling stake in oil refiner Saras to global commodity trading house Vitol last year.

IP posted an adjusted core profit of nearly 500 million euros in 2024 and had a net cash position of 408 million euros at end-December.

It currently owns a refinery in Ancona, eastern Italy, as well as the SARPOM refinery in Trecate in the north. It has rented out the Alma refinery in Ravenna under a tolling contract.

UniCredit is advising the Brachetti Peretti family on the deal, while SOCAR is being advised by Intesa Sanpaolo IMI CIB.

($1 = 0.8542 euros)

(Additional reporting by Ahmad Ghaddar in London; Editing by Joe Bavier)