Petrom to award energy contract worth 120m euros

Petrom, the largest Romanian company, is in search of an electricity supplier and wants to seal a contract worth around 120m euros, in a bid to cover the needs of its exploration and production unit.
This may mean the replacement of the company’s current supplier, Energy Holding, which could risks losing one of the most valuable contracts.
“The energy trader (Energy Holding i.e.) is Petrom’s most important supplier, providing for 90% of the company’s total consumption, which amounts to 2 TWh annually (3% of Romania’s consumption). The contract expires in the second quarter of this year,” stated Petrom representatives.
Petrom’s exploration and production unit, which is organising the tender, consumes 1.15 TWh/year. Practically, at a level of 52 euros/MWh, Energy Holdings’ deals with Petrom amount to some 100m euros per year, namely one third of the trader’s estimated turnover for last year.
Competition for the contract is expected to be tight, because the deal accounts for over half of the annual consumption of the biggest Romanian firm.
“We’ll make a bid to become Petrom’s supplier,” stated Jack Cutisteanu, a general manager of Petprod trader, the second biggest private electricity supplier on the market, with turnover in 2007 estimated at around 90m euros.
“Of course such a contract is of significant interest to CEZ Vanzare. We are certain to make a bid,” stated Ion Lungu, commercial manager at CEZ Romania.
“It’s an interesting contract and I believe we’ll submit a bid,” Cristian Secosan, general manager of E.ON Moldova Furnizare, in his turn stated
The contract is for a 2-year period and stipulates consumption of 1,150 GWh annually, which translates into an overall value of around 120m euros. Supply activities will start on April 1, 2008.
“After consulting the conditions of contract and the evaluation of Petrom’s new conditions and requirements, we’ll decide whether to submit a bid until the deadline, namely January 28, 2008. (…),” said Energy Holding representatives.
In August 2006, Energy Holding was taken over by Soci?t? Bancaire Priv?e (SBP), of Geneva, Switzerland. The firm was not part of Energy Holding’s initial shareholder structure and it took over 95% of stock in the wake of the deal.