OMV Petrom to invest up to EUR 1.2 bln a year in Romania, if investor environment is friendly

Oil and gas company OMV Petrom will invest between EUR 800 and EUR 1.2 billion a year until 2014, mainly in exploration and production, assuming an investment-friendly environment. Around 80 percent of the investments will go to the upstream division, and the rest to the mid and downstream divisions. The announcement was made on Tuesday ( June 19 ), part of the company's investment strategy up to 2021. The company will focus more on investing in the upstream segment, meaning exploration and production, with 80 percent of the money directed there, compared to 64 percent from its 2009-2011 investment strategy.

“We believe Romania has a significant energy supply potential, which can reduce its dependency on imports. Petrom is well positioned to support the energy sector, thus contributing to economic growth in Romania,” said Mariana Gheorghe, CEO Petrom (in picture). Petrom believes Romania's energy independence will decrease by 2030. “With a current share of imports of 20-30 percent, Romania’s relative energy independence is likely to decrease, with imports expected to increase to 40-50 percent by 2030 due to higher primary energy demand and natural decline in domestic hydrocarbon production,” according to Petrom. However, Romania has a large energy supply potential, which can be unlocked with significant investments, with over EUR 20 - 35 billion required by 2030 to unlock the hydrocarbon potential alone, according to the company's statement. In the short term, Petrom's gas and power activities will focus on bringing the Brazi 860 MW power plant on stream in the second half of 2012. “In the medium to long term, we will explore renewables opportunities and assess further infrastructure investments around the Nabucco gas pipeline project. Also, we will explore the development of a potential gas hub,” said Petrom. The company will modernize the Petrobrazi refinery by 2014 and strive to improve operations and reduce costs. But the oil and gas company, Romania's largest private investor, is asking for an investment-friendly environment with predictable, fair and transparent fiscal and regulatory regimes in order to invest in the country. The full presentation for investors in available online on the Bucharest Stock Exchange, where Petrom is listed – here. OMV Petrom is present in the distribution market for oil products in Romania, Republic of Moldova, Bulgaria and Serbia through a network of approximately 800 filling stations, operated under two brands, Petrom and OMV. In 2011, the Group’s turnover was EUR 5.3 billion, and its EBIT profit was EUR 1.1 billion. The Ministry of Economy holds 20.64 percent of OMV Petrom shares, the Property Fund SA holds 20.11 percent, the European Bank for Reconstruction and Development 2.03 percent and 6.21 percent is free floating on the Bucharest Stock Exchange.