OMV Enters into Negotiations on Petrom

OMV welcomes the decision of the Romanian Government to enter into exclusive negotiations concerning the acquisition of a 33.34% stake, followed by an increase in share capital to raise OMV's shareholding to 51%, in the Romanian oil group SNP Petrom SA. On April 15, OMV submitted a binding offer in line with its goal of profitable growth. It has been agreed by both parties that the details of the negotiations will be kept confidential.

OMV has presented a well structured offer and development plan for Petrom which forms the basis for the company's future performance and from which both Petrom and OMV could profit. The investment needs of Petrom will be financed through the proceeds of the capital increase, which is an important element of the purchase price, and through its operating cash flows. OMV will work constructively with the Romanian Government over the coming weeks to seek a mutually agreeable conclusion. The talks between the Romanian Government and OMV will be confidential. An update on the negotiations will be provided if and when appropriate.

OMV is confident that it will be able to work with the Romanian Government to agree upon a plan for a promising future for Petrom. In any event OMV is committed to the Romanian market and will continue to pursue its successful strategy of profitable growth in this key Central European market. Through its 100% subsidiary, SC OMV Romania Mineraloel s.r.l., the OMV Group has been active in Romania for five years, and in addition OMV has a 25.1% stake in The Rompetrol Group NV, currently the country's largest private oil company.

The OMV Group has been active in Romania since 1999 and now has more than 60 filling stations there. Moreover, thanks to its 25.1 stake in The Rompetrol Group NV in Romania, OMV has access to additional refinery capacities and high quality products. By 2008 OMV plans to boost the number of its filling stations to 110 and to invest an additional EUR 80 million in the expansion of its network. SC OMV Romania Mineraloel s.r.l. already directly employs 60 people and including all those who operate filling stations on a franchise basis and their employees, OMV is directly and indirectly associated with more than 1,000 employees in the country.

Our Privacy Pledge

Most Popular Articles

Brent Crude Oil : $50.79/BBL 1.30%
Light Crude Oil : $49.96/BBL 1.10%
Natural Gas : $2.77/MMBtu 2.12%
Updated in last 24 hours