Azerbaijan, Baku, Feb. 20 / Trend, E. Kosolapova /
Rompetrol will purchase part of the 44.69 per cent stake in Rompetrol Rafinare (owner of Petromidia and Vega refineries in Romania) from the Government of Romania and thus, gain full control over the company, Kazakh national oil company KazMunaiGas (KMG) said on Wednesday.
This follows the memorandum of understanding aimed at the resolution of a dispute regarding the conversion of Rompetrol Rafinare bonds in favor of the Romanian state in September 2010, which was signed on February 15 by Rompetrol and the Romanian Government. The state party was represented by the Office for Governments Industrial Shareholdings and Privatization (OPSPI) as the sole operator of the Rompetrol Rafinare block, owned by the Government of Romania.
Meanwhile, according to the company, the Romanian government will retain a minority shareholder status in Rompetrol Rafinare.
In addition, the two sides agreed on a joint investment fund, the main objective of which is the development of the Romanian energy sector, as well as strengthening the role of Rompetrol and KMG in the Black Sea region and the EU.
The final agreement will be signed shortly after the agreement reached on all nuances of technical and commercial agreements.
KazMunaiGas acquired the Rompetrol group of companies in 2007. Rompetrol conducts operations in the refining sector and sales of petroleum products in 12 countries. The main activities are focused in the Black Sea region, and in particular, in Romania where the company owns two refineries and an extensive network of gas stations.
In 2010, Rompetrol Rafinare, a part of the Rompetrol and owner of the Petromidia refinery, conducted the conversion of bonds issued in 2003 into common shares of the company in favor of the Government of Romania. As a result of the conversion, the Romanian Government has acquired the status of a minority shareholder of Rompetrol Rafinare, owning 44.69 percent of the shares. Since conversion, parties have been engaged in lengthy negotiations on further status of the Romanian Government as a shareholder and redemption of shares.
KazMunaiGas is Kazakhstan's national operator for the exploration, production, processing and transportation of hydrocarbons. A 100-percent share of KazMunaiGas belongs to the National Welfare Fund of Kazakhstan Samruk Kazina.
