Rome, September 15, 2025
Azerbaijan’s state oil company SOCAR Downstream is set to close a €2.5 billion acquisition of Italiana Petroli (API Group), a move that would reshape its European footprint from refining to retail, according to a market note by commodity trader Giacomo Prandelli.
What the deal would bring (per Prandelli):
~200,000 barrels/day of refining capacity across Ancona, SARPOM and Ravenna.
4,500+ fuel stations, one of Italy’s largest retail networks.
€500 million adjusted core profit (2024) and a €408 million net cash position.
SOCAR already operates the $6.3B, 214,000 bpd STAR refinery in Turkey.
The Italian purchase would further anchor the company in Europe’s downstream sector. Rome is invoking its “golden power” rules to safeguard fuel security and jobs, underscoring the deal’s strategic importance.
Prandelli adds that SOCAR beat Gunvor Group and Bin Butti Holding Group L.L.C in a high-stakes bidding contest.
With Azerbaijani gas already flowing through the TAP pipeline-50 bcm delivered since 2020-SOCAR is positioning as a long-term pillar of EU energy security, the note says.
The broader landscape is also shifting: Vitol bought Saras, Trafigura moved into ISAB, and now SOCAR is anchoring itself in Italy.
Source: LinkedIn post by Giacomo Prandelli.
