OMV Petrom announces signing the contract for the sale of the Dorobantu Wind Park
The transaction is part of the OMV Petrom strategy to focus on core activities
OMV Petrom, the largest oil and gas producer in Southeastern Europe, has signed the contract for the sale of OMV Petrom Wind Power SRL ("Dorobantu Wind Park") to Transeastern Power B.V. – a limited liability company registered in the Netherlands, a wholly owned subsidiary of Transeastern Power Trust, for an amount of EUR 23 mn. The completion of the transaction is subject to customary conditions precedent, including approval from the Competition Council, and is expected by end of this year.
OMV Petrom strategy as an integrated oil and gas group is to concentrate on core activities. More specifically, in Downstream Gas, the focus is placed on consolidating the leading position on the gas market, on maximizing the benefits of the integrated gas and power business model and on regional expansion. Wind power activities are not part of the strategic directions.
OMV Petrom announced its intention to sell the Dorobantu Wind Park at the beginning of 2016.
The Dorobantu Wind Park is located in the south-east of Romania, and includes 15 Vestas V-90 turbines, each with a 3 MW capacity. The total wind power capacities installed in Romania are currently estimated at 3,000 MW, whereby the Dorobantu Wind Park has a 1.5% share. In 2016, it generated a net electrical output of 0.08 TWh, receiving around 128,000 green certificates, half of them eligible for sale starting 1st of January 2018.
The transaction will not have a significant impact on the OMV Petrom financial and operational indicators, as the OMV Petrom Wind Power SRL operating result and assets represent less than 1% of the corresponding OMV Petrom Group KPIs, while the power production accounts for approximately 3% of the Group total power production.
About Transeastern Power B.V.
Transeastern Power B.V. is a subsidiary of Transeastern Power Trust, an independent electric power producer that owns and operates facilities which produce electricity from renewable sources (wind, solar and hydro). Transeastern Power Trust was founded in 2014 and is listed on the TSX Venture Exchange in Canada.
About OMV Petrom
OMV Petrom is the largest integrated oil and gas group in Southeastern Europe, with an annual oil and gas production of approximately 64 mn boe in 2016. The Group has a refining capacity of 4.5 mn tons / year and operates an 860 MW high efficiency power plant and a 45 MW wind park. The group is present on the oil products retail markets in Romania and neighboring countries through 784 filling stations, as at end March 2017, under two brands – Petrom and OMV.
OMV, one of Austria's largest listed industrial companies, holds a 51.01% stake in OMV Petrom. The Romanian state, via the Ministry of Energy, holds 20.64% of OMV Petrom shares, Fondul Proprietatea holds 12.57%, and 15.79% is free float on the Bucharest Stock Exchange and London Stock Exchange.
Starting 2007, OMV Petrom has integrated the principles of corporate responsibility into its business strategy. In this period, the company has allocated approximately EUR 49 mn for the development of communities in Romania, focusing on environmental protection, education, health and local development.