KMG International To Buy The Petrol Station Network In Turkey
This was during a meeting with journalists in Almaty, said senior vice president of the company Azamat Zhangulov.
KMG International NV – a subsidiary of JSC NC “KazMunaiGas”. In Romania KMG International owns 2 refineries – Petromidia and Vega, as well as the network of filling stations under the brand of Rompetrol. The group is also represented in France, Spain, Bulgaria, Georgia, Moldova and Ukraine.
Procedure 60% of the products produced at the company’s plants, confessed a senior vice-president of KMG International Azamat Zhangulov is exported. That is, most of the fuel wholesale company.
– We do not have enough petrol stations for the sale of petroleum products. It is essential that we went and sold as much as possible on their own fuel and lubricants. We have a retail development projects in which the company plans to enter new markets and build refueling in the regions of presence – he said. – We have always been very interesting the Turkish market, and we want to get out of it. However, the entrance ticket to this market is quite expensive – you need to buy a network of filling stations, oil storage, get a license and so on. If you do it all yourself, it will take some time and a lot of money. There is a question of buying ready-made company. But when all was well in Turkey, these companies are very expensive cost – at least $ 400 million .
Why are you interested just in the Turkish market?
– Today, Turkey consumes large quantities of imported diesel fuel, delivery of several million tons of diesel fuel from foreign markets. They will do so for many more years. Moreover, fuel market in Turkey has the potential to grow. In this country, the number of car owners is 3-4 times lower than in Europe. In Turkey, on 1 thousand. People have to 250 cars , while in Europe 750-800 cars per 1 thousand. Man . We now have additional volumes of diesel. After the modernization of Petromidia refinery production of diesel has increased by almost 50% . At the moment, not all of this amount is realized through our retail channels. We believe that over the diesel can be supplied to Turkey. In addition, we as EP can consider placing the oil in the Turkish oil refinery, which can operate on the principle of tolling (processing of foreign raw materials and then export the finished product -. The F ). Thus, the necessary amount of product for this market we can provide.
Why do you want to buy it retail network, rather than simply supplying diesel to the market?
– Margin trading is now simple to zero. If you’re not in control of the distribution channel, you almost do not earn. Supply to the market can any company, but not every company can build a complete chain from production to sale.
You are negotiating the acquisition of the gas station network in Turkey?
– Yes, we are always there, something to do and study. On the market there are some objects, and if they are interesting to us, we begin to negotiate. We are well advanced in negotiations with several companies, but did not come to an understanding on the issue price.
Does the access to the Turkish market by signing a contract with a Chinese energy company CEFC selling shares in International, KMG ?
– Of course, it depends, as we can not themselves finance such transactions.
In addition to Turkey, to any market you shop?
– In markets where we are already present, we are ready to increase the share. As long as the law allows, we can consolidate assets. Even in Romania, we can slightly increase the share of the market, there is also a potential for growth. If we talk about a more far-reaching plans, then we can talk about the Mediterranean. But that’s the big projects that we implement together with our partners.