Russian oil and natural gas giant OAO Gazprom is in talks to buy Romanian company Petrom from Austrian owners OMV, according to Romanian newspaper Bursa, quoting Mihai Macsim, the GM of the Romanian Russian Chamber of Commerce and Trade. The story was picked up by Reuters news agency and Russian business daily Kommersant. The report suggests the deal would be for OMV's Romanian subsidiary alone. Gazprom is the world's biggest natural gas extractor and Russia's largest company, and if the move goes ahead it will reshape the market both in Romania and the region as a whole. Rumors of a multi-billion dollar deal have circulated previously, but, so far, no firm steps have been taken.

OMV bought Romania's Petrom in 2004 for EUR 1.5 billion from the Romanian state. The Austrian company owns 51 percent in Petrom, while the Economy Ministry, 20.6 percent, and Fondul Proprietatea, 20.1 percent. The Romanian state wanted to list part of its remaining stake in Petrom on the stock exchange last year, but the offer failed as not enough investors showed interest. It plans to give it another try this year.

OMV Petrom is the largest company in Romania, with a EUR 4.4 billion turnover and EUR 709 million profit. The company has recently delayed the opening of its EUR 500 million gas-fired plant in Brazi due to external technical factors. The oil and gas company recently contracted a EUR 930 million loan from 14 lenders to finance earlier loans that were due in 2012. OMV Petrom Marketing operates 546 filling stations, out of which 389 are Petrom and 157 OMV. The group also owns an international network of about 250 filling stations, in the Republic of Moldova, Bulgaria and Serbia. Petrom is building a 860 MW gas-fired power plant at Brazi.

editor@romania-insider.com