Rompetrol Group – A bridge between East and West

The energy sector is and will remain the foundation of the economic partnership between Romania and Kazakhstan, with Rompetrol being an exponent of this fruitful relation by becoming a Romanian-Kazakh champion and a powerful player on the oil&gas markets in Central and Eastern Europe.Rompetrol-rafinery

The Rompetrol Group is a multinational oil company owned by the Kazakhstan national oil and gas company, KazMunayGaz (KMG), operating in 12 countries. Its main activities are represented by refining, marketing and trading, exploration and production, and other oil industry services such as drilling, EPCM, and transportation. The main market for Rompetrol is Romania, the home country for the company, where the Group is active both with regard to upstream operations (exploration & production), as well as with refining and downstream activities. At the same time, Rompetrol is active in Western Europe, in Spain & France, in Central and Eastern Europe, with the main hub being its country of origin, Romania, as well as in Central Asia. KMG, the strategic investor in Rompetrol, committed to develop a seven-year 1 billion investment fund together with the Romanian government, in order to finance and develop projects in the Romanian energy sector in the near future. A key indicator of the KazMunayGas (KMG) commitment towards Rompetrol and the Romanian economy is the fact that it has contributed with a total of 7 billion USD to the Romanian state budget between 2007 and 2013, having an annual average of contributions of over 1 billion USD, being one of the major contributors to the state budget. The Group turnover reaches close to 7% of Romania’s GDP. In an era of de-industrialization and the demise of industrial projects, Rompetrol has shown resilience in investments, developing the offshore Midia Marine Terminal, with a capacity of 24 million tons/ year, enabling the company to develop a significant transport hub for hydrocarbons. Petromidia refinery’s production target for 2014 is set at 5 million tons of crude-oil, the maximum oil quantity it has ever refined.Rompetrol-station

A little bit of history

In 1974, Rompetrol established as the international operator of the Romanian oil industry and in 1993 it was privatized by Management and Employee Buy Out (“MEBO”). Turnover subsequently reduced to below 6 million USD by 1998. At this point, businessman Dinu Patriciu and a local investor group purchased control. In 1999, Rompetrol acquired Vega Refinery, built in 1904, Romania’s sole producer of a wide range of special boiling point spirits (SPBS), solvents for olefins polymerization, bitumen, heating oil and catalysts for petroleum processing. The Vega refinery – located in Ploieşti – doubled its revenues in the first nine months after take-over. In 2000, Rompetrol acquired Petros – at that time Romania’s principal oilfield operator. The company has since been renamed Rompetrol Well Services. In the same year, the Group bought Petromidia, Romania’s largest and most sophisticated oil refinery, located at Năvodari. This strategic position, on the Black Sea coast, allows a fast shipping of crude and oil products. Thus, Petromidia, one of the last 3 functional refineries in Romania, became an important regional node, and Rompetrol one of the most important exporters. Rompetrol Petrochemicals, also located on the Navodari platform, is the only remaining petrochemical plant in Romania, vital for a key industrial sector. In 2001, Rompetrol created Rominserv S.A., Romania’s first Engineering Procurement Construction & Maintenance (EPCM), company focusing on the oil industry. In 2005, Rompetrol announced the acquisition of the French company Dyneff, who also operated in Spain. In the same year, Rompetrol established a branch in Georgia.Rompetrol-factory

In August 2007, the Kazakh company KazMunayGas acquired 75% of the Rompetrol shares from the owner Dinu Patriciu for around 2.7 billion USD. Through the acquisition of the Rompetrol Group, KMG has become an important player on the European oil & gas market. In 2008, the Group extended its activities in the Republic of Moldova, Rompetrol Gas, the liquefied petroleum gas (LPG) trading division, having acquired the majority shares stock of MoldInterGaz Moldova. In 2009, Dinu Patriciu sold the 25% equity stake in Rompetrol to KMG, thus exiting the oil business. In August 2009, Rompetrol opened its first two Litro fuel stations, on the A2 motorway in Romania, designed as the new premium brand of the group. In 2011, KazMunaiGaz bought two oil tankers, each with a capacity of 115,000 DWT, in order to ship oil through the Black Sea and the Mediterranean Sea. In the same year, Rompetrol entered Bulgarian and Hungarian markets.Rompetrol-efix

In the present days, The Rompetrol Group employs over 7,000 individuals, it has developed a network of over 1,000 gas stations in the region and helps Romania balance its trade deficit, by being the largest exporter, with 1.7 billion USD in exports in 2011. The Rompetrol Group has developed partnerships with key academic institutions in the oil & gas sector (oil & engineering departments at the Oil & Gas University Ploieşti, Ovidius University Constanţa, Politehnica Rompetrol University Bucharest), offering its support to maintaining Romania’s academic tradition in the sector. Rompetrol has developed an internship program for talented students in the sector, with more than 1,000 students attending the program in the past 10 years, out of which more than 100 became Rompetrol employees and thus being able to start a promising career. The Rompetrol Group decided to rebrand itself into KazMunayGas International NV, as part of a process aimed at integrating the activities and operations within its sole shareholder. The “umbrella” brand is prerequisite to consolidating the market position of the group of companies under the KMG brand in Romania and for entering other foreign markets. The central management and support division of the Group – The Rompetrol Group Corporate Center SRL Romania, will become KMG Rompetrol. The Rompetrol brand will further be used in the distribution segment, as it is recognised both locally and internationally.Rompetrol2

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