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Ad-hoc Report - Petrom signs contract for building Brazi power plant with a Consortium formed of General Electric and Metka

In compliance with Law no. 297/2004 and Regulation no. 1/2006 of CNVM

Date of report : March 31, 2008
Name of issuer : PETROM S.A.
Headquarters : Bucharest, Calea Dorobantilor nr. 239 sector 1
Telephone/fax number : +40 372 868930/021 3068538
Sole registration number at the Trade Register Office: 1590082
Fiscal attribute : R
Trade Register Number: J 40/8302/1997
Share capital: 5,664,410,833.5 RON
Regulated market on which the issued shares are traded : Bucharest Stock Exchange

Significant event to be reported:

Petrom signs contract for building Brazi power plant with a Consortium formed of General Electric and Metka

  • General Electric-Metka consortium selected through bidding process
  • Negotiations between Petrom and General Electric-Metka for the maintenance of the future plant
  • Petrom to supply approximately 8-9% of the electricity production of Romania by 2012

Petrom, the largest oil and gas producer in South Eastern Europe, signed the contract for the construction of a power plant at Brazi, Romania with a Consortium formed of General Electric (USA) and Metka (Greece) (“the Consortium”) today. According to the contract, the Consortium will build and deliver turn key by September 2011 a gas-fired combined cycle power plant. The value of the contract exceeds EUR 400 mn.
Currently, Petrom and the Consortium are carrying negotiations for the signing of a long-term maintenance contract for the power plant.

Gerald Kappes, member of Petrom Executive Board, responsible for Gas, Power and Doljchim: “We agreed with General Electric – Metka the contractual terms for the construction of the Brazi power plant and, further on, we will focus on the construction phase, so that we should begin the supply to the national power network, in the second half of 2011. Petrom shall become an important player on the electricity market given the fact that by 2012 we will ensure approximately 8-9% of the electricity produced in Romania.”< /strong>

General Electric-Metka was chosen for the construction of the power plant based on a tender organized by Petrom, which lasted 7 months. As part of the tender, the following companies submitted their offers: General Electric-Metka, ATEC, Alstom and Siemens. The Consortium General Electric-Metka had the most competitive bid and as a result they were selected at the end of January 2008 as preferred bidder for the negotiation of the contract.

The project is based on GE 9FB gas turbine, using a multi shaft concept: 2 on 1 configuration of two gas turbines, two heat recovery boilers and one steam turbine. With a net power of more then 860 MW, the plant is expected to have an electrical efficiency greater than 57%.

Around 20% of the plant’s capacity shall be used for covering Petrom’s own power consumption, while the rest will be sold on the Romanian power market.
The plant shall be located at the Petrobrazi refinery site. Presently construction site preparation works are underway. The construction of the plant is estimated to begin at the beginning of 2009.

Gerald Kappes

Executive Board Member
Responsible for Gas, Power & Chamicals (Doljchim)