Petrom hives off downstream gas business

“We are operating in an ever-changing marketplace and we need to adapt to it and remain competitive. The new structure of our gas trading business will offer visible benefits: it will facilitate our relations with the customers, it will improve cost efficiency by generating synergies and help us better meet market needs”, said Gerald Kappes, Petrom’s executive board member.

Petrom Gaz SRL has been fully acquired by Petrom in 2005. For the time being, Petrom’s Business Division Gas and Petrom Gas SRL both serve gas marketing functions. As of February 1, 2010, natural gas trading business currently under Gas Division will be transferred to Petrom Gas SRL.

Gas Division will be responsible for measuring of the caloric value of natural gas at reception terminals and other locations on the national grid pipeline system.

Petrom’s Business Division Gas will continue to manage gas supplies to Petrom’s internal consumption as well as gas storage operations.

“The transfer has no material impact over the financial situation of OMV Petrom SA (below 10% threshold of OMV Petrom SA’s total assets, namely of the company’s annual net turnover). Petrom Gas will be managed by a board council formed of three members. Petrom Gas’ operations will be overseen by the Supervisory Committee”, the company said in a release.

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.