Petrom performed first power deliveries to the grid, as part of Brazi gas fired power plant testing

June 21, 2011

• Hot commissioning started in June
• The 860 MW power plant will be commissioned during the second half of the year
• Investments in power plant construction amount to approximately EUR 500 mn

Petrom, the largest oil and gas producer in Southeastern Europe, made the first power deliveries to the grid as part of the tests run at Brazi combined cycle gas fired power plant (CCPP).

Hilmar Kroat-Reder, member of Petrom Executive Board, responsible for Gas and Power: "In June we started the hot commissioning, which represents a major milestone in the plant’s construction. In fact, this is the final testing stage before starting the commercial operation of the plant. It is a very important achievement, considering the future role of this power plant on the Romanian electricity market, as well as the fact that it is the first project of such dimensions in Romania during the last 20 years".

Petrom began the construction works of the Brazi CCPP plant in 2008. It is the largest private greenfield project of power generation in Romania, having a capacity of 860 MW generated by two gas turbines and one steam turbine.

The cold commissioning first started during the second half of 2010 and hot commissioning began this month with the "first fire" of the two gas turbines. During the hot commissioning period, the plant supplies electricity to the power transportation grid and a part of it is being used for the plant’s internal consumption.

The plant’s configuration and the technology used for its construction allow superior performance to all other classic power plants existing in Romania. Its 57% efficiency is twice higher than sector average while CO2 emissions are significantly reduced and situated below European average. The plant is characterized by flexible operation given its capacity of fast starting as well as the high speed in increasing the produced electricity.

The plant’s flexibility allows the installation of additional wind production capacities in the Romanian system: with the two gas turbines, each of them being able to produce 290 MW, approximately 700 MW can be installed in wind plants.

"The benefits of the plant in Brazi range from contribution to Romania’s security of energy supply and high investments with multiplying effect in the Romanian economy, to facilitating Romania reaching some of the objectives committed to the EU, such as emissions reduction and stimulation of the renewables share increase in the production mix", added Kroat-Reder.

Petrom Group
Petrom Group is the largest oil and gas group in South-eastern Europe, with activities in the business segments of Exploration and Production, Refining and Marketing as well as Gas and Power. The Group consolidated its position on the oil market in Southeastern Europe following a far-reaching modernization and efficiency increase process whereas investments accounted for more than EUR 6.6 bn during the last six years.

In Romania and Kazakhstan, the Group exploits proved oil and gas reserves of approximately 832 mn boe (in Romania 805 boe) and has a maximum annual refining capacity of 4.5 mn tons.

On the distribution market of oil products, Petrom Group is present through a network of approximately 800 filling stations, operated under two brands, Petrom and OMV. The activity in Romania is performed through OMV Petrom Marketing, 100% owned by Petrom. OMV Petrom Marketing operates 546 filling stations, out of which 389 are Petrom and 157 OMV. The Group also owns an international network of approximately 250 filling stations, located in Republic of Moldova, Bulgaria and Serbia.

For the Group’s sustainable development, its strategy includes business diversification by approaching the power market. In this context, Petrom is building a 860 MW gas fired power plant at Brazi and acquired the project for the construction of a 45 MW wind park.

In 2010 the Group’s turnover was EUR 4,421 mn, EBIT was EUR 709 mn.

OMV, one of Austria’s largest listed industrial companies holds a 51.01% share in Petrom. OMV is active in 13 countries in its Refining and Marketing business segment while in Exploration and Production is active in two core countries, Romania and Austria, and holds a balanced international portfolio. Ministry of Economy holds 20.64% of Petrom shares, Property Fund SA holds 20.11%, the European Bank for Reconstruction and Development 2.03% and 6.21% is free float on Bucharest Stock Exchange.