Baku, Azerbaijan, Jan.31
By Elena Kosolapova - Trend:
The Romanian government has finally approved its decision on a memorandum's provision on the sale of 26.7 percent of Rompetrol Rafinare's share (subsidiary of Rompetrol Group - operator of Petromidia refinery) to Kazakh KazMunaiGas, as well as the creation of a joint investment fund for the implementation of projects in Romania's energy sector, KazMunaiGas said on Jan.28.
The memorandum of understanding was signed in February, 2013, between the Rompetrol company (the 100 percent subsidiary of KazMunaiGas NC JSC) and the agency for state shareholdings and privatisation of the Romanian Energy Ministry, according to KazMunaiGas.
KazMunaiGas will pay around $200 million for the share in Rompetrol Rafinare in accordance with the memorandum. The share of the Romanian government in the investment fund will amount to 20 percent.
Rompetrol Company is ready to immediately launch the implementation of the memorandum's provisions after the completion of legal procedures.
"The continuation of the investment programme within the investment fund will enable the strengthening the positions of KazMunaiGas NC JSC as a large international player in the Black Sea region," the company said.
The investment fund will function in accordance with the best practice in this sphere and by following the interests of both sides, namely Romania and KazMunaiGas NC JSC, the company said. .
The total volume of investments could amount to $1 billion. The projects complying with the investment policy of KazMunaiGas NC JSC will be financed with the fund's borrowings on the capital market, as well as with the funds of other investors at the level of separate projects.
"The development of the Rompetrol Company's activity in Romania will ensure support to the strategic interests of KazMunaiGas NC JSC in the region and the plans of the company's entry to the top 30 largest oil and gas companies of the world," Chairman of the Board of KazMunaiGas Sauat Mynbayev said.
Translated by L.Z.
Edited by S.M.