Petrom tries to cut down costs at refineries

Petrom will invest one billion euros over the next five years to retool and slash production costs of Arpechim Pitesti and Petrobrazi Ploiesti refineries.

The company”s management on Monday presented the new portfolio of fuels sold in Petrom petrol stations, in accordance with Euro 4 standards, replacing the petroleum products that are currently available in petrol stations. “Both refineries included in Petrom”s portfolio rank as some of the most expensive refineries in Europe,” stated Jeffrey Rinker, a member of Petrom”s executive board, in charge of refining activities and petrochemicals.

A former BP director, Rinker joined Petrom management team at the beginning of this year.

“Investments Petrom has announced for refinery segment are meant to reduce these costs, as well as improve the quality of the resulting fuels, so that they may be in line with EU norms,” added Petrom representative.

Within this programme, the company targets an increase in refineries” utilisation to 95% from 80% at present and an extension of the time span between inspections to five years. Petrom, the biggest Romanian company, included in OMV”s portfolio, announced an investment programme worth one billion euros aimed at the two refineries it owns that is scheduled for completion in 2010.

“All the new fuels are produced in Petrom refineries,” Rinker also said. “We are trying to produce the fuels that will be compulsory starting 2007 in advance,” Petrom representative added.

The company announced it would invest 42 million euros during the first quarter of this year in an installation for the hydrotreatment of vacuum distillate in order to derive low-sulphur petroleum products, in accordance with European standards in the domain.

The project was carried out by a South-Korean consortium consisting of LG International and SK&EC, during an extensive revamping process targeting Petrom refineries.

During the 2006-2008 period, the company will earmark around 110 million euros to set up a hydrogen installation at Arpechim Pitesti refinery, installations for the hydro-desulphurisation of diesel oil and petrol respectively in Petrobrazi Ploiesti, as well as logistics and warehouse improvement.

The company on April 1st launched a new fuel portfolio to replace the old one in the entire Petrom network of filling stations. All the fuels included in the new portfolio have a low content of sulphur, in accordance with Euro 4 pollution reduction norms.

For 2006, Petrom announced it would build 40 Petrom V filling stations, rebuild 75 filling stations, as well as operate a number of 300 petrol stations in a Full Agency system.

At present, the company owns six Petrom V petrol stations and another nine are under construction.

Petrom

* Will invest 1bn euros over the next 5 years to retool Arpechim Pitesti and Petrobrazi Ploiesti refineries and cut down production costs

* Has introduced a new portfolio of fuels in accordance with Euro 4 standards

* All the new fuels are produced in Petrom”s own refineries

* For 2006, plans to build 40 Petrom V petrol stations, to reconstruct 75 filling stations and operate 300 petrol stations in a Full Agency system

roxana.petrescu@zf.ro