Romanian-Kazakh fund moves slowly toward EUR 230 mln promised investments

The Kazah-Romanian Energy Investment Fund, 80% owned by KMG International and 20% by the Romanian state, has opened a new fuel station in Timis county, western Romania, upon an investment of about USD 1.3 million.

This is the 20th of a chain designed to eventually include 84 fuel stations operating under the Rompetrol brand and distributing car fuels produced by the Petromidia Navodari refinery. The refinery is operated by Romanian company Rompetrol Rafinare, 54% owned by Kazakh state oil company KazMunayGaz through Dutch-registered KMG International and 46% owned by the Romanian state.

The fund plans to open six more fuel stations by the end of this year, with USD 8.3 mln investments, and will start the construction of four other units.

The investment fund announced in March plans to invest USD 230 million to build a cogeneration plant and open a petrol station network.

The establishment of the investment fund was stipulated in the memorandum of understanding (MoU) between the Romanian state and KMG International for the settlement of Petromidia’s USD 660 million historic debt issue with the Romanian state, which the Kazakh company took over from Petromidia’s former owner Dinu Patriciu. The biggest investment project targeted by the fund is the construction of a new cogeneration plant in Midia through the investment vehicle (SPV) - Rompetrol Energy SA, where it will be the majority shareholder along with KMG International, Rominserv and the Midia Thermoelectric Plant.

In related news, KMG International announced that Beimbet Shayakhmetov will replace Zhanat Tussupbekov as the group’s CEO. The new CEO was given the task of continuing the implementation of the development strategy, including major projects within the framework of the Kazakh-Romanian Energy Investment Fund, the group said in a press release.

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