Baku/Rome, September 23, 2025
Azerbaijan’s state oil company SOCAR has signed an agreement to acquire 99.82% of Italiana Petroli (IP) from API Holding, cementing one of the largest energy investments of the year in Europe.
The €2.5 billion deal is expected to close in the first quarter of 2026, pending regulatory approvals and customary conditions.
The move represents SOCAR’s biggest downstream push into the European Union to date. Italiana Petroli is among Italy’s largest integrated fuel and refining platforms, with more than 4,500 fuel stations nationwide, two refineries with a combined annual capacity of about 10 million tons (~200,000 barrels per day), and extensive operations in bitumen, aviation fuel, lubricants, and logistics.
A market note by commodity trader Giacomo Prandelli described the company’s strong financials: an adjusted core profit of €500 million in 2024 and a net cash position of €408 million. SOCAR outbid global competitors including Gunvor Group and Bin Butti Holding L.L.C. in a competitive M&A process that stretched back to late 2024.
“This acquisition is a milestone in SOCAR’s diversification strategy,” SOCAR President Rovshan Najaf said at the signing ceremony. “It demonstrates our long-term commitment to building a competitive, innovative, and socially responsible business, while contributing to Europe’s energy security and strengthening Azerbaijan–Italy ties.”
Strategic Importance
Rome has invoked its “golden power” rules to scrutinize the deal, underscoring concerns about fuel security and jobs. SOCAR has pledged to maintain Italiana Petroli’s workforce and to preserve its environmental standards, while working closely with the Italian management team to safeguard the company’s market position.
Chairman Ugo Brachetti Peretti, representing API Holding, said the sale was the result of a careful selection process:
“After more than 90 years, Italiana Petroli remains a benchmark in Italy’s fuel sector. We are proud to hand over to new owners a legacy built on professional excellence, innovation, and resilience.”
Europe’s Downstream Shake-Up
The SOCAR-API deal comes amid a wave of restructuring in Europe’s downstream sector: Vitol recently acquired Saras, while Trafigura expanded into ISAB. SOCAR already operates the $6.3 billion STAR refinery in Turkey (214,000 bpd capacity), and with Italy’s IP now in its portfolio, the company is emerging as a central pillar of European refining and retail.
Since 2020, more than 50 bcm of Azerbaijani gas has flowed to Europe through the TAP pipeline. Adding refining and retail in Italy reinforces SOCAR’s role as a long-term guarantor of EU energy security, particularly at a time of heightened geopolitical uncertainty.
Closing is anticipated in early 2026 – a timeline that, if met, would put SOCAR firmly in the driver’s seat of Italy’s energy market ahead of next summer’s peak demand season.
