ASTANA (TCA) — A package of updated agreements on the creation of a joint venture, under KMG International N.V. (formerly Rompetrol), between Kazakhstan’s national oil and gas company KazMunayGas (KMG) and a major Chinese energy company, China CEFC Energy Company Limited, was signed last week in Bucharest, KMG said.
KMG and CEFC participate in the newly created joint venture based on share distribution of 49% and 51%, respectively. As a part of the agreements, CEFC undertakes a number of commitments, according to which it will make investments in Europe and Silk Road countries and develop jointly with KMG projects in the field of oil refining and development of gas station network.
Initial package of agreements was signed in Astana on April 29, 2016. The parties have required additional round of negotiations to settle the issues between them, on new legal circumstances arisen on the territory of Romania.
The final stage of the transaction will be its approval with the competent authorities of Romania and the European Commission, obtaining necessary confirmations from the financial institutions. It is expected that these procedures will be completed in the first half of 2017.
“Cooperation with CEFC opens for KazMunayGas, under KMG International, a number of new opportunities to extend the participation of Kazakhstan and China to European markets on sales of oil and oil products, on the basis of mutually beneficial and long-term partnership with Chinese investors,” said Chairman of the Management Board of KazMunayGas Sauat Mynbayev.
KMG is the national oil and gas company of Kazakhstan. It is the Kazakhstani operator for exploration, production, refining and transportation of hydrocarbons, representing the state’s interests in the oil and gas sector of Kazakhstan.
CEFC is one of the fastest growing private companies in China. In 2016, it entered the list of Global Fortune 500, taking the 229th place. CEFC operates in the energy, financial and investment sectors.
KMG International N.V. is mainly focused on refining, marketing and implementation of trading activities on international markets. A retail network of the group that operates under the brand of Rompetrol includes more than 1,100 fuel distribution stations in Romania, Georgia, Bulgaria and Moldova. The company’s main activities are concentrated in the Black Sea region, where the company owns two oil refineries.