The State Oil Company of the Azerbaijani Republic (SOCAR) and Israel’s Union Energy & Systems A Ltd. have incorporated a joint venture in Malta for natural gas production activities, according to Malta’s Competition and Consumer Affairs Authority (MCCAA).
“MCCAA approved SOCAR and Union Energy & Systems A Ltd.’s decision to establish Union Energy & Systems Operations Malta Ltd. as a fully functional and independent joint venture in Malta. The regulator made this decision on April 3 under simplified merger review procedures,” it said.
According to MCCAA records, the JV notification was submitted on March 11. The transaction was formalized through a share subscription agreement.
“After review, the Authority concluded the deal meets simplified procedure requirements without violating antitrust laws. Accordingly, the regulator raises no objections and recognizes the JV as lawful,” it said.
SOCAR and Union Energy & Systems A will exercise joint control over the new entity.
“The JV will focus on natural gas field development and production, leveraging SOCAR’s operational expertise in extraction and transportation,” it said.
Union Energy & Systems A Ltd. is a Malta-registered private company wholly owned by Israeli entrepreneur Aaron Frenkel, who controls Union Energy Group. The company conducts gas operations through subsidiaries.
SOCAR operates across the entire oil-gas value chain, from exploration to processing and distribution. In Malta, SOCAR engages in liquefied natural gas (LNG) activities.
As previously reported, SOCAR signed an agreement with Union Energy on January 31, 2025 to acquire a 10% stake in Israel’s offshore Tamar gas field, one of the Mediterranean’s largest deposits.
In addition, on March 17, 2025, SOCAR and Union Energy signed a memorandum of understanding for joint gas exploration in Israel’s exclusive economic zone (EEZ).
