- Investment program of EUR 600 mn completed
- The refinery produces around 47% of the domestic fuel demand
- Petrobrazi refinery has the highest Nelson index in the region
OMV Petrom, the largest oil and gas producer in South-Eastern Europe, has celebrated today 80 years from setting-up the Petrobrazi refinery. In July, OMV Petrom successfully finalized the modernization program of Petrobrazi refinery, performed during 2010-2014. Total investment in the modernization process amounted to around EUR 600 mn.
The event was attended by Romania’s Prime-Minister, Mr. Victor Ponta, the President of OMV Petrom’s Supervisory Board and CEO of OMV, Mr. Gerhard Roiss, member of OMV Executive Board responsible for Refining and Marketing, Mr. Manfred Leitner, CEO of OMV Petrom, Mrs. Mariana Gheorghe, member of OMV Petrom Executive Board responsible for Refining and Marketing, Mr. Neil Anthony Morgan, as well as other representatives of the public central and local authorities and company’s partners involved in the refinery’s modernization process.
Gerhard Roiss, CEO OMV: "We are very proud that through the investments performed at Petrobrazi we are contributing to the continuation of an 80 years old tradition. A modern, competitive refinery that supplies fuels at the same quality standards as all refineries in OMV Group is essential for increasing the efficiency and capitalizing on OMV Petrom’s integrated company model."
Mariana Gheorghe, CEO OMV Petrom: "The modernization of Petrobrazi refinery was a necessary step in order to adapt it to market demand, which has changed substantially compared to when the refinery was designed. The increase of diesel production, resulted from the modernization process, will enable us to reduce Romania’s diesel imports with positive impact on the current account deficit."
The history of Petrobrazi refinery began with the setting-up of Creditul Minier refinery in 1934, with a refining capacity of 300,000 tons/year. Almost completely destroyed in the Second World War, the refinery had been rebuilt and reconfigured throughout the years, reflecting market context and shareholders’ strategy. Presently, the refinery produces around 47% of Romania’s fuel demand.
After the privatization, investments in Petrobrazi amounted to EUR 1.1 bn, of which EUR 600 mn were invested in the past four years. The main focus of the most recent modernization program, performed during 2010-2014, was to increase the refinery’s competitiveness. With an adjusted refining capacity of 4.2 mn tons/year, Petrobrazi can process the entire crude production of OMV Petrom in Romania. Petrobrazi refinery Nelson index stands at 11.28, the highest in the region.
Following the modernization process, Petrobrazi refinery can have a better response to the demand on the fuel market. Diesel and jet fuel will have a share of up to 45% in the products yield structure of the refinery, while diesel production is 60% higher compared with 2009.
Also, the commissioning of modern equipment and adjustment of refining capacity have a positive impact on the refinery’s efficiency, contributing to a reduction of total energy consumption by approximately 40% against 2004.
OMV Petrom is the largest integrated oil and gas group in South-eastern Europe, with an annual oil and gas production of approximately 66 mn boe. The Group has a refining capacity of 4.2 mn tons/year and owns an 860 MW high efficiency power plant and a 45 MW wind park. OMV Petrom is present on the oil products retail markets in Romania and neighbouring countries through approximately 800 filling stations.
OMV, Austria’s largest listed industrial company, holds a 51.01% share in OMV Petrom. The Romanian state, via the Ministry of Economy, holds 20.64% of OMV Petrom shares, the Property Fund holds 18.99% and 9.36% is free float on the Bucharest Stock Exchange.
In the last nine years investments for the consolidation and modernization of OMV Petrom amounted to EUR 10 bn. The annual direct, indirect and induced impact of OMV Petrom in Romania’s GDP is around 5%.
Starting 2007, OMV Petrom integrated the principles of corporate responsibility within its business strategy. In this period, the company allocated more than EUR 40 mn for the development of communities in Romania, focusing on environment protection, education, health and local development. Andrei’s School is the main platform for community involvement.