KMG International Announces Major Investments In Romania After Takeover By Chinese Group
KMG International (KMGI), the owner of the biggest oil refinery in Romania – Petromidia and the second-biggest fuel distribution network on the local market, announced big investment projects for the following years, after moving under Chinese control, reports KazWorld.info with reference to Romania-Insider.
“The strategy of KMG International with its new major shareholder aims at developing major projects, Romania being the business priority. Considering Kazahstan’s potential in the energy sector, the financial resources of China, we will considerably impact the progress of this country,” said Zhanat Tussupbekov, CEO of KMG International.
“We plan to increase the refining capacity to 10 million tons 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. 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.” he added.
Kazakhstan’s national oil company KazMunayGas (KMG NC) and China Energy Company Limited (CEFC) signed an agreement to move on with the transaction through which CEFC will buy 51% of KMG International. The agreement was signed in Bucharest on Thursday, December 15.
“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 deal will undergo standard procedures and clearance stages, including approvals from the EU, Romanian and Chinese competent authorities,” reads a statement of 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.
“We stand firmly by all of our commitments, derived from the Memorandum of Understanding with the Romanian state, including the establishment of a Romanian–Kazakh Investment Fund of up to 1 billion USD depending on the market conditions during the investment period of 7 years,” said KMG International representatives.