KazMunayGas in talks with Rumanian government about the purchase Petromidia’s shares

March 2. Interfax-Kazakhstan

KazMunayGas in talks with Rumanian government about the purchase Petromidia’s sharesKazakhstan’s National Company KazMunayGas is in talks with the Rumanian government about the purchase of shares from Petromidia, the business development director of KazMunayGas and the chair of The Rompetrol Group Board of Directors, Tolegen Bozzhanov, told a Wednesday press conference in Almaty.

He explained that when KazMunayGas acquired Rompetrol, Petromidia, which is part of the Group, had debts to the Rumanian government that were restructured through bond issue.

“KazMunayGas, as owner of Rompetrol, could choose between two repayment methods: either in cash or in shares. In September 2010 we made a decision to repay the debts in shares,” he said.

According to him, KazMunayGas has fully repaid the bonds by converting part of them to shares of Petromidia.

“The total debts stood at 570 million euro, out of which 70 million euro were repaid in cash and the other converted to shares. However, no government would want shares but money. Now we are in talks about purchasing these shares back. We will let you know as soon as a decision is made,” Mr Bozzhanov said.

He said that if the parties reached agreement the deal would be financed from borrowed funds.

“Financing is likely to be from monies that will be borrowed by Rompetrol as debtor,” Mr Bozzhanov added. He said that might be an issue of bonds or a bank loan.

The Rumanian government owns a 44% stake in Petromidia. In 2007 KazMunayGas acquired a controlling stake in The Rompetrol Group, which owns Petromidia (a refinery in Rumania).

The Rompetrol Group, a large oil and gas company in Rumania, is wholly owned by JSC KazMunayGas Processing and Marketing (part of Kazakhstan’s National Company KazMunayGas). The company has three refineries (Petromedia, Vega and Rompetrol Petrochemicals) and 1042 filling stations in Rumania, France, Spain, Moldova, Ukraine, Bulgaria and Georgia.

National Company KazMunayGas JSC is a national operator for exploration, production, processing and transportation of hydrocarbons. The company represents the state interests in the oil and gas sector of Kazakhstan. KazMunayGas is wholly owned by Samruk-Kazyna National Welfare Fund.

http://www.interfax.kz/?lang=eng&int_id=10&news_id=4130

Share