CEFC extends deadline for Rompetrol takeover for October 2016

Chinese company CEFC, which signed in April an agreement to take over KMGI (former Rompetrol Group) from KazMunayGas, has extended the deadline for the completion of the deal, which was initially set for October 2016. The announcement was made by Rompetrol vice-president Azamat Zhangulov.

According to Zhangulov, the deadline was extended due to the fact that Rompetrol is involved in ongoing talks with the Romanian state. “The deadline with the CEFC was extended, given that there will be new talks with the Government. The agreement with this investor will continue, but we will need other few months, likely, to finalize the new terms of agreement,” Zhangulov said.

In regards to KMGI’s plans to sue the Romanian state ICC International Court of Arbitration, Zhangulov also announced the company expects the Government to enter negotiations with Rompetrol. “Now we are in the period of reconciliation. We expect the government to come to negotiations. We expect talks with the negotiation committee to begin soon. We have not had any discussions, we were approached by the Government. There is a procedure for the set up of a committee to address the company, but the Government needs time. We understand that it cannot be done immediately. After we sent the letter, there hasn’t been any discussion with the authorities, ” said Zhangulov.

Zhangulov also announced that he hasn’t yet received a request from the Ministry of Energy to extend the memorandum signed in 2013 with the Romanian Government, which is set to expire at the end of the year. “The memorandum of agreement was signed in february 2013 and was extended up until now 13 times. It was last extended in October 2015. We believe we gave the Government enough time to undertake the activities that were planned until now. We have not yet received an official request for a new renewal, but as soon as we have it we will look into it. Nevertheless, we still hope that all activities will be made in the agreed terms. We understood this request will arrive, and, as soon as it does, we will discuss it with the Government and then we will announce the decision,” the Rompetrol vice-president said.

Earlier this month, Energy Minister Victor Grigorescu stated the Government could extend the memorandum signed with Rompetrol on the creation of a joint investment fund valued at USD 1 billion. According to Grigorescu, the Government was considering several solutions, given that the memorandum will soon expire.