The Italian government has initiated discussions with the Republic of Azerbaijan to secure guarantees on fuel supply continuity should the state energy company SOCAR acquire the refiner Italiana Petroli (IP). This request comes as the Brachetti Peretti family, owner of IP, pursues negotiations for a sale valued at €2.5bn ($2.93bn).
According to two sources close to the matter, Italian authorities have asked Baku for clear commitments regarding supply continuity and job protection. IP operates a refining capacity of approximately 200,000 barrels per day and manages over 4,500 petrol stations across Italy.
A strategic asset under scrutiny
The potential sale of this critical infrastructure is subject to Italy’s “golden power” regulation, which allows the government to impose conditions on the sale of assets deemed vital to national security. Frequently used in the energy and telecommunications sectors, this mechanism gives the state the authority to block or condition foreign acquisitions.
In parallel with SOCAR, an investor based in Abu Dhabi has also shown interest in IP, though formal negotiations have not been confirmed. None of the involved parties, including SOCAR, the Azerbaijani government, and IP, responded to requests for comment outside business hours.
Past precedents and shared interests
Diplomatic ties between Italy and Azerbaijan remain strong, particularly in the gas sector through the Trans Adriatic Pipeline (TAP), which is a key component of Italy’s energy supply. However, a recent industrial case underscores the complexity of such transactions: Baku Steel Company’s failed attempt to acquire Acciaierie d’Italia led the Italian government to relaunch the bidding process.
IP reported an adjusted core profit of nearly €500mn in 2024, with a net cash position of €408mn at year-end. The company owns the Ancona refinery, holds a stake in the SARPOM refinery in Trecate, and operates the Alma refinery in Ravenna under a tolling agreement.
The sale process is being advised by UniCredit on behalf of the Brachetti Peretti family, while SOCAR is receiving advisory support from Intesa Sanpaolo IMI Corporate & Investment Banking.
