- Following acquisition, Petrom becomes the largest operator on the LPG market in Romania
- Optimized Petrom business on the Romanian LPG market
Petrom, the largest oil and gas producer in South Eastern Europe, decided to exercise its pre-emption right regarding the purchase of 55.53% stake of Shell Gas Romania SA and of 60% stake of Trans Gas Services SRL. Petrom will acquire Shell Gas Romania and Trans Gas Services SRL following the decision of Shell to exit LPG business in Romania, Bulgaria, Czech Republic, Germany, Spain and Switzerland. The closing of the transaction is subject to the signing of the relevant transaction documents with Shell Gas (LPG) Holdings BV and the clearance of the Competition Council, which is expected to be obtained in the third quarter of this year.
Tamas Mayer, member of the Executive Board of Petrom, responsible of marketing: „The acquisition will allow us to strengthen our position on the LPG market in Romania. This transaction gives rise to synergies with our existing LPG business and will allow us to increase our market share, which is now approximately 17% for gas cylinders distribution and 2% for autogas ”.
Petrom has been operating on the LPG market in Romania through its own bottling and distribution network, in addition to its 44.47% of Shell Gas Romania, the largest operator of gas cylinders distribution market Petrom, and 20% of Trans Gas Services SRL, imported propane supplier. Also, out of the approximately 600 filling stations owned by Petrom in Romania, around 300 sell gas cylinders.
„The LPG annual consumption in Romania amounts to approximately 250 kt and is very likely to increase. Therefore, we will focus on this business in order to optimize it”, added Tamas Mayer.
Petrom is the largest Romanian oil and gas group, with activities in the business segments of Exploration and Production, Refining and Petrochemicals, Natural Gas, as well as Sales and Marketing. Petrom exploits estimated oil and gas reserves of 1 billion boe, has an annual refining capacity of 8 million metric tons and holds 593 filling stations in Romania. The company also has an international network of 211 filling stations located in Moldova, Bulgaria and Serbia. In 2006 the turnover of Petrom was EUR 3,709 million, EBITDA was EUR 1,020 million. Following the share capital increase OMV, the leading oil and gas group in Central Europe holds a 51,011% share in Petrom. OMV is active in 13 Central European countries in its Refining and Marketing business segment and in 19 countries on five continents in Exploration and Production. The Romanian state holds 30.862% of Petrom shares, Property Fund SA holds 9,887%, the European Bank for Reconstruction and Development, 2.026% and 6.214% are owned by minority shareholders.