$ 1 billion in Roman-Kazakh investment fund


By Jerom Bolt
The representatives of KMG International (the new name of the Rompetrol Group) and the ones of the Energy Participation Management Company (SAPE) on October 26 signed the creation of the joint Romanian-Kazakh investment fund, on the occasion of a public event.
The Romanian-Kazakh fund is expected to reach an investment level of one billion US dollars in 7 years.
The KMGI contribution to the fund's capital will be of 150 million US dollars, with part of it, the Romanian state's contribution of 30 million US dollars to be paid by KMGI, as Alexey Golovin, Senior Vice President of KMGI, told a press conference.
The structure of the investment fund's shareholding is: KMGI - 80 per cent and the Romanian state - 20 per cent.
According to the company, the main priority of the fund is to develop energy projects, contributing thus to the development of the energy sector in Romania, as well as to the strengthening of the energy security of the country, through the diversification of the oil supply sources and the consolidation of a favourable investment climate in Romania.
KMGI identified at least two major projects with investments in excess of 200 million US dollars, which can be developed under the framework of the Romanian - Kazakh fund and that will positively impact Romania's economy, especially, through the direct creation of approximately two thousand work places.
One of the projects considered by the mixed investment fund refers to the construction of a co-generation plant (to produce combined electric and thermal power) on the Petromidia platform, in partnership with the Midia Thermoelectric Power Plant. The co-generation plant will have the capacity of fueling with energy both the Navodari City and the Petromidia refinery. The value of the investment reached 120 million US dollars and is estimated that the project will be finished in 4 years since the launching.
Another projects refers to the expansion by approximately 80 oil stations on the local market. The new stations will be developed through greenfield investments, with the total estimated amount to reach 100 million US dollars.
'The setting up of the Romanian-Kazakh fund represents a success for both out company and the Romanian state and, implicitly, for the Romanians. The Fund's investment policy is conceived of such a manner to support the development of profitable, sustainable projects, which bring dividends to its shareholders. This means generating real benefits to both the Romanian state and the KMGI, which will see thus a growth in profitability,' said Daniyar Berlibayev, the Chairman of the Board of Directors of KMG International.
In his turn, Constantin Vaduva, the Chairman of the SAPE Board of Directors, said that this fund represents an opportunity to attract new investments in the Romanian energy sector.
'The investments that the setting up of this fund will trigger will lead to the creation of new jobs in Romania, with the national energy sector to benefit from the increase in its production capacity,' said Vaduva.
KazMunayGas already holds 54.63 per cent of the shares of Rompetrol Rafinare S.A., via KMG International NV, while the Romanian Government holds a 44.68 per cent share. Rompetrol Rafinare owns the Petromidia and Vega refineries, as well as Rompetrol Petrochemicals.

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