KazMunaiGaz intends to invest over 500m dollars in Rompetrol

Kazakh state-owned company KazMunaiGaz, which became the majority shareholder of petroleum group Rompetrol after it acquired an over a 75% stake, intends to invest 500 million dollars (330 million euros) within the next 3-5 years in expanding Rompetrol and for the time being rules out a new acquisition in Romania (i.e. the Rafo refinery). The volume of investments that Rompetrol anticipates for the next 3-5 years will exceed 500 million dollars (330 million euros). The funds will be directed towards expanding its current (refining) capacity, expanding the retail network, and towards the other segments which are expected to meet European standards,” said Arzhan Takachakov, spokesman for the Kazakh company. KazMunaiGaz took over 75% of the group run by Dinu Patriciu, with the whole Rompetrol group being put at 3.6 billion dollars (2.4 billion euros), and the value of the transaction, at 2.7 billion dollars (1.8 billion euros). The Kazakhs will appoint six members of the Rompetrol Group’s Board of Directors, with the management of the company to continue to be in the hands of Dinu Patriciu, who still owns 20%, and Phil Stephenson, his American partner, who controls 5% of the Rompetrol Group.