KMG International invests over $100 mln in Romania’s Midia terminal in 2007-17
KMG International (KMGI), the major shareholder of Romania’s Rompetrol Rafinare, said it has invested over $100 million (89 million euro) in the Midia marine terminal in the Black Sea during 2007-2017.
The volume of the unloaded crude by KMG International through the Black Sea offshore terminal has reached over 32 million tons since 2009, when the offshore terminal was put into operation, KMGI said in a press release on Saturday.
“In 10 years since the since the start of the operations carried out in the Black Sea, the records have increased yearly. In 2016, the total quantity transferred through all the terminals operated by Midia Marine Terminal was of over 11 million tonnes of crude and petroleum products,” Midia Marine Terminal general manager Ioan Taus said.
Located in Midia port, the terminal is operated by Midia Marine Terminal, a company that coordinates the shipping activities in Midia harbor and in Petromidia and Vega refineries, operated by KMGI.
With an estimated transfer capacity of 24 million tonnes per year, the oil terminal can receive ships up to 160,000 dead-weight tonnes (dwt). By operating the offshore marine terminal, the company decreased the distance by about 33 kilometers from the Constanta port route and allows for reductions of approximately $7 per tonne of crude oil supply costs.
Thus, the investment of $100 million for the construction of the oil terminal was amortized only five years after its commissioning, KMGI said.
Midia Marine Terminal was established in 2007, taking over the administration of the berths in Midia harbor from Rompetrol Logistics. The company has three main divisions, on shore oil & gas port terminals, offshore oil terminal & crude oil tank farm and Petromidia and Vega refineries Ramps.
KMGI owns filling stations chain Rompetrol and operates two oil refineries in Romania, Petromidia Navodari and Vega Ploiesti. It also owns filling stations in Moldova and Bulgaria and France via Dyneff company. In July KMGI sold a 51% stake in Dyneff to CEFC.
Rompetrol was privatized in 1993 by Management and Employee Buy Out (MEBO) and later in 1998, it was bought by a local investor group led by Dinu Patriciu. In August 2007, KazMunayGas acquired 75% of the Rompetrol shares from their owner Dinu Patriciu for around 2.5 billion euro.
In December 2016, KMGI, said that negotiations between the National Company KazMunayGas of Kazakhstan (KMG NC) and China Energy Company Limited (CEFC) for the purchase of 51% of KMGI’s shares have reached the final stage.
Rompetrol Rafinare shares were trading 1.92% lower at 0.0510 lei at 1226 CET on the BVB.