Rompetrol to get full control over Rompetrol Rafinare

Kazakhstan-owned Rompetrol and Romanian government signed a Memorandum of understanding on disputes settlement over Rompetrol Refinare, Tengrinews.kz reports citing the press-service of Kazakhstan national oil and gas company KazMunaiGas. "Rompetrol and Romanian government represented by the Office for State Ownership and Privatization in Industry (OPSPI) as the sole manager of the stake in Rompetrol Rafinare owned by the government of Romania, signed a memorandum of understanding on settlement of the dispute on conversion of Rompetrol Rafinare's bonds to Romanian government in September 2010," the message states. According to the terms of the signed memorandum, Rompetrol will buy out from the government a 44.69-percent stake in Rompetrol Rafinare (owner of Petromidia and Vega oil refineries in Romania), thus getting a full control over the company. The Romanian government will retain the status of a minority shareholder of Rompetrol Rafinare. Besides, both parties agreed to create a investment fund aimed for development of the Romanian energy sector, as well as enhancement of the role of Rompetrol and KMG in the Black Sea region and in the EU. One of the key advantages of this partnership lays in creation of a good investment climate for KazMunaiGas' operations as part of its strategy on covering the markets and taking its products to the final user. "We highly appreciate the efforts of the Romanian government aimed at taking a mutually beneficial decision and making the step required for further development of economic relations between Romania and Kazakhstan. This decision will allow us to focus on implementation of our plans related to expansion of Rompetrol's activities in the Black Sea region and strengthening the positions of KMG in the European Union," first deputy chairman of KazMunaiGas Daniyar Berlibayev said. The final agreement will be signed in the nearest time after coordination of all its technical and commercial aspects, the company stated. KMG purchased Rompetrol group of companies in 2007. The company’s main directions include oil processing, marketing and sales of oil products. Rompetrol owns and operates three oil refineries in Romania, as well as a European network of over 1,000 petrol stations (in Romania, Moldova, Bulgaria, Georgia, France and Spain). Rompetrol operates in 12 countries, its personnel counts at 7.5 thousand people. The company's turnover made $6.8 billion in 2011. Rompetrol Refinare is one of the companies of Rompetrol group and owns Petromidia oil refinery. In 2010 the company performed conversion of bonds issued in 2003 into common shares in favor of the Romanian government. As a result of such conversion, Romanian government received the status of a minority shareholder of Rompetrol Rafinare with a 44.69 percent stake. The conversion was followed by long negotiations on further status of the Romanian government as a shareholder and repurchase of the stock.