Kazakhstan, Astana, May 13 / Trend D.Mukhtarov /
The Romanian Government has approved the final terms of the Rompetrol Company's debt settlement, the press service of the Ministry of Foreign Affairs of Kazakhstan reported.
"Under the agreement, Rompetrol Company will purchase shares of the government in the oil refineries in Romania. The relevant bill was submitted to Parliament for ratification," according to the ministry's press-release.
The basis of the transaction was formed by the decision on the establishment of the Kazakh-Romanian investment fund with a total market capitalization of $1 billion.
"The investment fund will strengthen strategic partnership between Kazakhstan and Romania, ensure the growth of consumption of Kazakh energy resources in the Black Sea region and the European Union", the press release said.
"Our main interest lies in the fact that Romania remains an important country for Kazakhstan and a strategic partner for KazMunaiGas in terms of investments," the Prime Minister of Romania Victor Ponta said on this occasion.
"We welcome the decision and determination of the Government of Romania to establish a rapid and profitable variant solution in the interests of both sides, which provides a continuation of the business and operations in Romania as well as the necessary preconditions for the company's expansion in the region of the Black Sea. This collaboration will support the energy bridge connecting resources of Kazakhstan and markets in Western Europe as well as provide the consolidation and development of economic relations between Kazakhstan and Romania," the president of Rompetrol Janat Tusupbekov said.
The total investment of the Rompetrol Company owned by KazMunaiGas JSC exceeded $2 billion in 2007-2012.
In 2007, 75 percent of the shares of Rompetrol Group were acquired by the Kazakh National Company KazMunaiGas. Through this transaction, KazMunaiGas gained access to two oil refineries and major network for the dissemination of petroleum products.
In autumn 2008, Rompetrol and KazMunaiGas opened a marine terminal for crude oil in the Black Sea port of Midia. Floating marine terminal for unloading crude oil is 8.7 km away from the coastline of the Black Sea near the oil refinery "Petromidia." The terminal may accept tankers with crude oil with the maximum lifting capacity of 160,000 tons, Suezmax class. The maximum amount of transportation within the project amounted to 14 million tons of crude oil per year.
Upon completion of the project, vessels unload crude oil from the floating discharge system through submarine and surface pipes, brought to the park with the crude oil storage tanks and to the Petromidia refinery. Compared with a route through the port of Constanta, this project has reduced the length of the pipe between a tanker and refinery by 33 km as well as reduced costs by about $4-5 per ton.
In June 2009, the National Company KazMunaiGas completed the acquisition of a 25 percent stake in The Rompetrol Group NV, previously owned by the company Rompetrol Holding S.A. As a result of this transaction, KazMunaiGas has become a 100-percent shareholder of TRG.