Petrom goes shopping for energy

Petrom, the biggest company on the Romanian market, is preparing to choose its energy supplier for the next two years in one of the biggest deals on the energy market.

The value of the deal revolves around 150-200 million euros, according to market sources.

The oil company, run by the Austrian-owned OMV, has already received several bids as part of a tender, with participants including Energy Holding trading company.

Petrom representatives specified a tender is underway for electrical power acquisition, without offering any further details about this deal.

Petrom purchases energy to cover the consumption it registers through its upstream operations (exploration and crude oil and gas production), and the two refineries it owns, Arpechim Pitesti and Petrobrazi Ploiesti, with cumulated processing capacity of 8 million tonnes per annum, sources close to the company add.

The team in charge with Petrom operation is made up of Gerald Kappes, chief of acquisitions with OMV”s refining & marketing unit, and Shoaib Mahboob, brought by OMV from Pakistan to handle Petrom acquisitions as head of investment procurement business administration. For power acquisitions, Petrom is advised by Horvath & Partners Management Consultants. Petrom has access to the free electrical power market, enjoying the autonomy of an eligible consumer, which allows it to directly negotiate with suppliers on the price of acquisition.