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KMG NC and CEFC – strategic partnership for developing oil & gas activities in Europe
KMG International salutes the today’s conclusion in Bucharest of the agreement between the National Company KazMunayGas Kazakhstan and CEFC (China Energy Company Limited) stating the commitment to pursue the transaction of buying 51% of KMGI shares, and signed a restated set of documents, thus confirming the solid partnership between the two companies.
After a period in which both parties clarified certain legal and technical aspects of the deal, KMG NC and CEFC reaffirmed the commitment to support the implementation of KMGI’s development plans in Romania and the Black Sea region. The deal will undergo standard procedures and clearance stages, including approvals from the EU, Romanian and Chinese competent authorities.
„The strategy of KMG International with its new major shareholder aims at developing major projects, Romania being the business priority. Considering Kazahstan’s potential in the energy sector, the financial resources of China, we will considerably impact the progress of this country.
We plan to increase the refining capacity to 10 million tons of crude per year, to build up to 200 new fueling points, to develop industrial services in upstream and downstream areas, as well a? to build a cogeneration plant on Petromidia platform. The investments carried out up to present, the implemented business model as well as the future partnerships are factors which make us optimistic about the continuous growth of the business.” – stated Zhanat Tussupbekov, CEO of KMG International.
Assets and operations owned and carried out by KMG International (KMGI) in Europe and in the Black Sea region will serve as a development platform that will target both the increasing of operational and financial performance of KMGI and expanding at the international level of dedicated activities and operations performed by CEFC.
KMG will consider continuing of crude oil supplies towards KMGI subsidiaries in order to sustain and extend their core operations in Europe, and sustain refining operations at Petromidia. The strategic partnership will deliver benefits for KMG NC, CEFC and KMG International and will establish the necessary framework for future joint projects and will contribute to the economic and social growth of the areas where those projects will be implemented, most of them being în Romania. We stand firmly by all of our commitments, derived from the Memorandum of Understanding with the Romanian state, including the establishment of a Romanian – Kazakh Investment Fund of up to 1 billion USD depending on the market conditions during the investment period of 7 years.
KMG International has already identified a number of profitable projects for the Investment Fund – the extension of fuel stations network on the local market, the construction of a new cogeneration plant on Petromidia platform, and continuation of investment in upstream exploration fields – to generate direct and indirect beneficial effects for Romanian economy, for the communities where these projects are going to be implemented, including total creation of approximately 2,000 jobs during different phases of the projects.
In order to accelerate these projects, KMG International is looking forward with great interest toward the administrative procedures carried out by Romanian Government, allowing the implementation of the projects.