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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.”

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.

Background Information

Petrom SA
Petrom is the largest Romanian oil and gas group, with activities in the business segments of Exploration and Production, Refining and Marketing as well as Gas and Power.. Petrom exploits estimated proved oil and gas reserves of 0.9 bn boe, has an annual refining capacity of 8 mn t and holds around 550 filling stations in Romania. The company also has an international network of 257 filling stations located in Moldova, Bulgaria and Serbia. In 2007 the turnover of Petrom was EUR 3,683 mn, EBITDA was EUR 933 mn. 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 21 countries on five continents in Exploration and Production. AVAS (Authority for State Assets Recovery) holds 20.64% of Petrom shares, Property Fund SA holds 20.11%, the European Bank for Reconstruction and Development 2.026% and 6.214% are owned by minority shareholders.

General Electric Company (GE) is a diversified industrial corporation. It is engaged in developing, manufacturing and marketing a variety of products for the generation, transmission, distribution, control and utilization of electricity.
GE has been active in Romania since 1984. Since then, many GE businesses have entered the Romanian market, hence the number of employees exceeds 900 people today and is continuously growing. Currently, GE local presence consists of the representative office, some registered businesses, Turbomecanica Combustor Products, the only manufacturing unit for aircraft engine components GE has in South Eastern Europe and GE Money, about to complete the integration and start to operate in Bucharest.

METKA is a leading company activated in Greece and specialized in the construction of energy projects. The company undertakes Engineering, Procurement and Construction contracts, has the ability to industrially produce energy facilities, and has considerable experience and know-how in environmental and industrial energy projects in Greece.
METKA employs an average of 600 people in the last five years. METKA under new ownership and management of Mytilineos Group since November 1998 has increased turnover from EUR 40 mn in 1998 to EUR 294 mn in 2006 and pre-tax profits from EUR 3 mn in 1998 to EUR 54 mn in 2006.