Done deal: Patriciu sells Rompetrol

The sale is the culmination of a 7-month private auction process conducted by Morgan Stanley’s London-based Energy Group and has to be approved by the European Commission and other competition authorities.

KazMunayGas and Rompetrol Holding anticipate that their agreement will be approved with enthusiasm. They are confident that it meets all the regulatory requirements and that the company will significantly contribute to the security of European energy supplies.

KMG will appoint a majority of TRG’s Board, which will reflect the new ownership structure. Patriciu will maintain his position as Chairman and CEO of the company to secure continuity of vision and strategy in the management.

This acquisition, one of KMG’s largest, will bring significant advantages to both shareholders and their clients. KazMunayGas will double its refining capacity by gaining access to two TRG refineries in Romania and increase its retail infrastructure in European markets. TRG’s refining capacity exceeds four million tons and the company can distribute more than seven million tons of oil products annually through its own wholesale and retail networks.

“KMG’s investment provides TRG with access to raw materials and finance that the company needs to continue its expansion plans, both through investments in refinery improvement, logistics and sensible well-priced acquisitions. The vision we have for TRG’s growth is understood, shared and encouraged by our new partners,” said Patriciu.

The President of KazMunayGas, Uzakbay Karabalin indicated that “the acquisition of a majority stake in TRG provides us with a footprint in important downstream markets in Europe, including France, Romania, Moldova and Bulgaria, as well as the ability to use TRG as a platform for future expansion.” He added that the company will “focus its activities in the high-growth markets of the Black Sea, Balkans and Mediterranean regions”, thus building an “energy bridge between Kazakhstan’s oil resources and the growing demand for refined products in Central, Eastern, and Western Europe”.

Eric Kish, Rompetrol Vice President for Marketing and Retail, told Business Standard that the company intends to become one of top 10 oil companies in Europe, leaping from its current 23rd place.

“KMG’s investment provides TRG with access to raw materials and finance that the company needs to continue its expansion plans Dinu Patriciu president rompetrol group