UPDATE – reaction from Energy Minister
Shortly after the appearance of this news, Energy Minister Victor Grigorescu made the following comments: “The decision to sell a majority stake in KMG International belongs strictly to the Kazakh State. From the data held so far, in the case of such acquisition, the form of ownership of Rompetrol Rafinare Company remains unchanged. Ministry of Energy monitors carefully the fulfillment of all obligations undertaken by KMG International in relation to the Romanian state.”
THE INITIAL NEWS
The Chinese firm China Energy Company (CEFC) announced, Tuesday, that it would buy 51% of KMG International, former Rompetrol Group, in a package of agreements totaling 4 billion dollars signed between China and Kazakhstan, according to Reuters.
KMG International owns two refineries in Romania and a petrochemical unit, and operates approximately 1,000 branded Rompetrol and Dyneff gas stations in several states near the Black Sea, Caspian Sea, and in France and Spain. Sources close to the group told Reuters the Chinese mentioned that the potential takeover comes bundled with a plan to increase the distribution network in Europe to 3,000 filling stations.
In 2007, Rompetrol Group was acquired by KazMunayGas, the oil company owned by the Kazakh state, and has recently been transformed into KMG International, the company that does business in refining and distribution in Europe.
“KMG International welcomes the conclusion of the Memorandum of Understanding in Beijing between the national company KazMunayGas of Kazakhstan and CEFC China Energy Company Limited for the creation and development of an international strategic partnership in the oil and gas sector. The assets and operations owned and run by KMG International in Europe and the Black Sea region will underpin this development platform, which will include both the increase in operational and financial performance of KMG and its subsidiaries outside Kazakhstan, and international expansion of activities and operations carried out by CEFC.”, KMG International representatives announced.
KMG International owns and runs major operations in refinery, petrochemical, retail, trading, upstream and industrial services, having about 7,500 employees and operations in Kazakhstan, Georgia, Ukraine, Moldova, Bulgaria, Turkey, Romania, France and Spain.
CEFC China Energy Company Limited has operations in oil, gas and financial services in 15 countries, with a turnover of about 30.5 billion euros in 2014 and over 20,000 employees.