KazMunayGaz eager to increase petrol stations in Romanian market by franchising

Oil&Gas Materials 28 January 2011 17:23 (UTC +04:00)

Kazakhstan, Astana, Jan. 28 / corr Trend A.Maratov /

Rompetrol, a Romanian daughter company of KazMunayGaz, intends to increase the number of its petrol stations in the Romanian market by franchising, Rompetrol Director General for Finances Dmitriy Grigoryev told Trend on Friday. 

"We have entered strongly in the franchising. We are tasked to attain one third of the market, which means increase of our share in the domestic market by 7-8 percent in the nearest two years," Grigoryev said. 

"It is dealt with 33 percent share of presence in the Romanian market of oil products. Rompetrol's participation share in Romanian market by retail is roughly 27 percent. 

"We particularly intend to fulfill this task by franchising. We are closely developing business alliances with Romanian partners, which enter Forbes. They mainly include investment companies from real estate and supermarkets sector," Grigoryev added.

According to Grigoryev, such approach is explained by definite conditions appeared in Europe. For instance, petrol stations operate within supermarkets in France, where definite system has been shaped in organizing trading of oil and oil products. Such symbiosis is comfortable for consumers, for whom market of oil products is developing. 

Supermarkets in France, which is referred as perfect market, have their own petrol stations. They sell oil products at their direct cost, because are not interested in margin, Grigoryev said.

So far, Rompetrol has concluded two contracts to establish such a symbiosis, which will enable to increase considerably participation in Romania's domestic market of petrol products. 

"BP is the sole champion in the world in realizing this policy for now. The essence of such an approach is that all expenses of petrol stations should be covered by volume of trading from super markers, but not sponsored separately. BP's expenses constitute 120-130 percent, while Rompetrol's attain approximately 40 percent," Grigoryev stressed.

The Rompetrol Group NV is a 100-percent subsidiary of KMG Processing and Marketing.

Rompetrol is a large holding company in Romania. It owns two oil refineries (Petromidia and Vega), and some 630 gas stations in Europe (Romania, France, Spain, Moldova, Ukraine, Bulgaria, Albania, and Georgia).

The company owns a 25 percent share of the petroleum product retail sales market in Romania, a 3.5 percent share of the market in France, and a 1.5-percent stake of the market in Spain.

Rompetrol works in 13 countries in service and trading.