The Joint Investment Fund made by KazMunaiGas International (KMGI) and the Romanian Government should be set up soon, according to the state secretary in the Ministry of Energy Robert Tudorache. The fund was first announced in 2013 when the Memorandum of Understanding between KMGI and the Romanian state was signed.
A delegation of officials from the Romanian Government and several representatives of Romanian energy companies paid a visit to Kazakhstan last week to discuss with KazMunayGas, one of the major investors in Romania, the status of the Memorandum of Understanding concluded in 2013 between KMGI and the Government of Romania, which also provides for the creation of a common investment fund in the energy field, according to state secretary in the Ministry of Energy Robert Tudorache.
“The two sides, the Romanian Energy Ministry and KMGI have been working closely lately, making significant progress in implementing the first step of the Memorandum to establish a Romanian-Kazakh investment fund. We hope to announce in the soon to set up the Joint Investment Fund,” Robert Tudorache said in an interview with Kazpravda, cited by Agerpres.
He said the fund would strengthen economic relations between Romania and Kazakhstan, representing the cornerstone in building an energy hub at the gateway to the European Union, and will also support KMGI’s plans to strengthen its position both locally , both in Romania and at regional level.
Referring to the mixed fund profile and the projects that will develop under his umbrella, Robert Tudorache stressed that the fund is aimed at investments in the energy field, its priorities being in the field of the Romanian energy sector development with the main objective to strengthen the country’s position as important regional actor in this area.
“During the discussions we had with KMGI representatives, two projects that could be developed under the Romanian-Kazakh Fund have been addressed. They relate to the development of a cogeneration plant on the Petromidia platform, which produces combined with electricity and thermal energy, as well as expanding the Rompetrol filling station network on the Romanian market by greenfield investment, with investment in the two projects amounting to approximately USD 220 million, their development having a clear capacity to boost the economy Romania, the local energy sector, the investment climate and, of course, Rompetrol’s profitability,” the State Secretary told the Energy Ministry.
KazMunayGas already owns 54.63 percent of Rompetrol Rafinare S.A. via KMG International NV while the Romanian Government holds a 44.68 percent stake. Rompetrol Rafinare S.A. owns Petromidia and Vega refineries as well as Rompetrol Petrochemicals.
In 2013, KazMunayGas and the Romanian state agreed that the Kazakh group will acquire an additional 26.7 percent stake in Rompetrol Rafinare for USD 200 million and will set up a capital fund of 150 million dollars and assets in worth up to USD one billion.
“The 2013 Memorandum is still in force. The work to establish a common investment fund and the acquisition of the shares of the Romanian Government is in progress,” KMG International said in July. that he intends to complete these goals in 2018-2019.
KazMunayGaz International, owned by the KazMunayGas oil company in Kazakhstan, is present in 11 countries and owns the Petromidia Năvodari refineries (largest unit in Romania) and Vega Ploieşti (the oldest refinery in operation), as well as distribution networks for fuels (Rompetrol) in Romania, Bulgaria, Moldova, Georgia, France and Spain.