Rompetrol-KMG Case Presented In The Foreign Press
Rompetrol was about to be sold to a company in China, when the Directorate for Investigating Organized Crime and Terrorism (DIICOT) announced that it is investigating a deal 13 years ago, writes The Financial Intelligencer about blocking position where is the oil company owners.
The investigation that resulted in the seizure of assets worth 670 mil. Dollars belonging to Rompetrol, has undermined negotiations with the Chinese firm and determined owners Kazakh KazMunaiGas, to warn that reconsidering their investment in nine years carried out in Romania.
CEFC transaction whereby the Chinese firm would become owner of the Rompetrol group is renegotiated, in the new open file DIICOT and multiple seizures that are placed on the group’s assets.
The investigation prosecutors on Petromidia refinery privatization and the memorandum that historical debts of the company were converted into actions that affect the completion of the transaction will take CEFC Chinese company Rompetrol and renegotiate some terms of the deal are.
KMG International (formerly TRG) in Romania has invested $ 1.6 billion in 2007-2015 and provides 44.6% of the refining capacity of the country, according to a study by the Academy of Economic Studies (ASE) in Bucharest July-September 2016. at the same time, the group contributed 3% to the state budget.
“KazMunayGas – the national oil company of Kazakhstan – took the strategic decision to enter the European market in Romania in 2007 when it acquired former Rompetrol Group. Besides foreign investment aimed at increasing the processing capacity of the refinery and increase the company’s competitiveness by providing superior quality products to international standards, shareholder KMGI gives Romania an alternative to Russian oil providing a steady flow of oil from the perimeter of Tengiz, thus contributing and energy security of the region. This is an important aspect if we consider that Romania has three refineries producing fuel, compared to 11 in 1990. At that time, the total refining capacity of the country was 32 million tonnes per year, compared to only 11 million tons / year in 2016, “said Azamat Zhangulov recently, senior vice president of KMG International, quoted in a statement.
In turn, Bogdan Negrea, professor and researcher of the Academy, said that in 2013-2015, the company has paid to the state budget $ 5.1 billion.
“Indicators of financial and operational relevance for specialists, but by Leontief analysis we can see the added value of the company for the whole of society. For example, the fees paid by KMG International from the state budget in the period 2013-2015 (5.1 billion dollars ) would have built 16 466 kindergartens, 10 466 schools or 48 hospitals, while for each job created, the group indirectly generates 2.25 jobs in other economy, “said Professor ASE.