Amromco secures USD 50 mln funding for expansion in Romania, Eastern Europe

US-based Amromco, the biggest independent upstream gas producer in Romania, said on Monday it completed a USD 50 million equity investment from Mercuria, an integrated energy and commodity trader, in a move designed to fund acquisitions in Romania and Eastern Europe.

Amromco, whose main shareholder is the private equity firm First Reserve, will use the additional funding to develop its 30 producing, development and exploration concessions across Romania and to seek new fields in Eastern Europe.

Ron Carpenter, CEO of Amromco, said: “The investment from Mercuria will enable Amromco to accelerate growth, through increasing production from existing assets and the acquisition of additional opportunities in Eastern Europe. The agreement also places the Company in a good position to execute on additional strategic partnerships with regional dominant Oil and Gas companies by adding further capital strength to its proven operational track record and ability to offer mutually beneficial marketing and off-take arrangements.”

The company recently acquired there oil fields in Northeastern Romania from Petrom, controlled by Austria’s OMV. In the last decade it assisted Romgaz, the state-owned gas producer, in the developing some of its fields, with incremental production amounting to around 2 bcm.

Under the investment deal, Amromco and Mercuria will establish a marketing joint venture for commodities in Romania. Arie Pilo, Mercuria’s investment manager, has been appointed as a non-executive director in Amromco’s board.

“We believe Romania is poised to become a significant energy hub in the region and Amromco is uniquely positioned to become one of the relevant participants in the ongoing gas market liberalization,” said Shameek Konar, chief investment officer of Mercuria.

Ovidiu Posirca