China, Kazakhstan Wrap Up Romania Energy Deal
Kazakhstan’s National Company KazMunayGas and China Energy Company Limited (CEFC) concluded an agreement in Bucharest committing to pursue the transaction of buying 51% of KMGI shares, KMG International said in a press release.
“After a period in which both parties clarified certain legal and technical aspects of the deal, KMG NC and CEFC reaffirmed the commitment to support the implementation of KMGI’s development plans in Romania and the Black Sea region,” the press release said said.
The deal will undergo standard procedures and clearance stages, including approvals from the EU, Romanian and Chinese competent authorities.
“The strategy of KMG International with its new major shareholder aims at developing major projects, Romania being the business priority,” CEO Zhanat Tussupbekov said.
Considering Kazahstan’s potential in the energy sector, the financial resources of China, we will considerably impact the progress of this country. We plan to increase the refining capacity to 10 million tonnes of crude per year, to build up to 200 new fueling points, to develop industrial services in upstream and downstream areas, as well as to build a cogeneration plant on Petromidia platform,” he said.
“The investments carried out up to present, the implemented business model as well as the future partnerships are factors which make us optimistic about the continuous growth of the business,” Tussupbekov added.
According to KMG International, Assets and operations owned and carried out by KMG International (KMGI) in Europe and in the Black Sea region will serve as a development platform that will target both the increasing of operational and financial performance of KMGI and expanding at the international level of dedicated activities and operations performed by CEFC.
KMG will consider continuing of crude oil supplies towards KMGI subsidiaries in order to sustain and extend their core operations in Europe, and sustain refining operations at Petromidia.