Kazakh group KazMunayGas International, which owns the biggest oil refinery in Romania – Petromidia, and the Romanian company that manages the state’s stakes in energy companies – SAPE, signed on Friday the association agreement for launching the Kazakh-Romanian Energy Investment Fund.

The Kazakh – Romanian fund is estimated to reach USD 1 billion in investments over a period of 7 years.

KMGI’s initial contribution to the fund is USD 150 million while the contribution of the Romanian state representing USD 30 million will also be committed by KMGI. The Kazakh group will hold 80% of the fund’s shares and the Romanian state – 20%.

KMGI has already identified at least two major projects that the fund can develop, with the total amount of investments exceeding USD 200 million, namely the construction of a cogeneration plant on the Petromidia platform – USD 120 mln and the expansion of Rompetrol’s local gas stations network with approximately 80 new locations – USD 100 mln. These two investments would also help create some 2,000 new jobs.

The creation of this fund was included in the Memorandum of Understanding between KMGI and the Romanian state concluded in 2013, which also provided that the Kazakh group would buy part of the Romanian state’s stake in Rompetrol Rafinare (Petromidia). The Romanian government led at that time by Victor Ponta agreed to sell 26.7% of the company’s shares for USD 200 million and to keep an 18% stake in the company.

editor@romania-insider.com