OMV Petrom sells Romanian non-core gas distribution unit Petrom Distributie Gaze to Ligatne

Romania’s oil and gas company OMV Petrom recently sold its non-core gas distribution company Petrom Distributie Gaze (PDG) to Ligatne SRL, the company announced. This transaction will have no material impact on OMV Petrom financials, as it accounts for less than 10 percent of the company's total assets value, respectively the company’s net annual turnover of 2012, reads its statement. However, the transaction is still pending approval from the Competition Council and its value was not disclosed. “According to our strategy we will continue to focus on supplying gas to industrial and commercial clients. The sale of OMV Petrom’s gas distribution business is in line with this strategy. Also, taking into account Gaz Sud and GDR’s presence on the Romanian market, I strongly believe that this transaction with Ligatne is an opportunity for the development of PDG,” said Cristian Secosan, member of OMV Petrom's Executive Board, responsible for Gas and Power. The parent company of Ligatne is also the majority owner of SC Gaz Sud SA (Gaz Sud) and SC Grup Dezvoltare Retele SA (GDR), which together operate a gas distribution network measuring around 700 km in length and serving over 22,000 clients located primarily in the neighboring areas of Bucharest. PDG was set up in 2007, when the Romanian legislation was modified to observe the EU Directive which specified the separation of gas distribution from other activities in order to guarantee market competition and transparency. At the end of last year, PDG’s distribution network measured some 1,000 km in length and served over 21,000 clients. Petrom Group has activities in the business segments of exploration and production, gas and power as well as refining and marketing. As of the end of 2012, the group exploited proved oil and gas reserves of approximately 775 mn boe in Romania and Kazakhstan. The company operates 800 filling stations under two brands, Petrom and OMV, in Romania, the Republic of Moldova, Bulgaria and Serbia. In 2012, the Group’s turnover was nearly EUR 5.9 billion and EBIT was over EUR 1.2 billion. OMV, holds a 51.01 percent share in OMV Petrom. Romania’s Ministry of Economy holds 20.64 percent of OMV Petrom shares, the Property Fund has 18.99 percent, the European Bank for Reconstruction and Development (EBRD) – 1.62 percent and 7.74 percent is free floating on the Bucharest Stock Exchange. Irina Popescu, irina.popescu@romania-insider.com