Petrom sells LPG subsidiary to Crimbo Gas

Newsroom 29/06/2012 | 07:46

Oil and gas producer Petrom sold its liquid petroleum gas business to Crimbo Gas International in order to improve the efficiency of the refining and marketing division, marking the exit of Petrom from the bottling and distribution market.

Petrom will continue to produce LPG and sell gas cylinders and auto gas through its filling stations. Crimbo will receive gas from Petrom’s refinery and will supply cylinders and auto gas to OMV Petrom.

“The subsidiary Petrom LPG manages a high number of small clients and has hence high business complexity. This complexity of a non-core business is not in line with our strategy. Therefore, as part of our portfolio optimization process, we decided to reduce the complexity by selling this business line to a specialized company, for which bottling and distribution represents its core business,” said Neil Anthony Morgan, executive board member at Petrom, responsible for Refining and Marketing.

Petrom LPG has bottling plants in Negoiesti and Timisoara, as well as a national gas cylinder distribution network that includes the sale and distribution of propane and auto gas, as well as wholesale activities. The company has around 260 employees.

Petrom said the deal will not have a material impact on Petrom’s financial. This means it will be below 10 percent of the company’s total assets value, respectively net annual turnover of 2011. The deal in pending clearance from the Competition Council.