KMG to decide in 3 months if it will take over Rompetrol

Uzakbai Karabalin, President of KazMunaiGas, said the group has the option to buy the remaining 25 percent of shares. Rompetrol officials did not comment on the information.

Analysts indicate that there will be no fundamental change in strategy if KazMunaiGas takes over 100 percent of Rompetrol. “I believe Dinu Patriciu included an exit strategy in the contract signed with KazMunaiGas,” said General Manager of BT Securities brokerage house, Rares Nilas. ING oil and natural gas analyst Tamas Pletser says that while not mandatory, the offer to take over the remaining 25 percent of Rompetrol shares “is a logical step and would simplify the company’s structure.”

Also, KazMunaiGas approved an investment budget of some $340 million (€219.79 mln) for Rompetrol this year. “By the end of 2008, KazMunaiGas plans to provide financing for Rompetrol’s investment programs,” said the company’s spokesman Arzhan Takachakov. He added that the decision on the outstanding stock will be made towards the end of the 3-month period.

By taking over Rompetrol, KazMunaiGas obtained access to European oil markets, due to Rompetrol’s presence in 13 states, including France and Spain. The value of the transaction was not made public, but specialists estimated the price to be some $2.2 billion (€1.42 bln).