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KMG & China CEFC to Make Joint Venture

Source: www.gulfoilandgas.com 12/15/2016, Location: Asia

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Package of updated agreements on the creation of a joint venture, under KMG International N.V. (Formerly “Rompetrol”), between JSC NC "KazMunayGas" (hereinafter - KMG) and a major Chinese energy company, China CEFC Energy Company Limited, was signed on December 15, 2016, in Bucharest.

KMG and CEFC participate in newly created joint venture based on share distribution of 49% to 51%, respectively. As a part of the agreements reached, CEFC undertakes a number of commitments, according to which it will make investments in Europe and Silk Road countries and develop jointly with the 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. Parties have required additional round of negotiations to settle the issues between the parties, 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 European Commission, obtaining necessary confirmations from the financial institutions. It is expected that these procedures will be completed in the first half of 2017.

Chairman of the Management Board of NC "KazMunayGas" Mr. Sauat Mynbayev stated: "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."

KMG – is a national oil and gas company of the Republic of Kazakhstan - Kazakhstani operator for exploration, production, refining and transportation of hydrocarbons, representing the state's interests in the oil and gas sector of Kazakhstan. "KazMunayGas" National Company is a vertically integrated oil and gas company with a complete production cycle from exploration and production of hydrocarbons, their transportation and processing to providing specialized oilfield services.

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. - the main focus of the group’s activity is 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. The company also carries out exploration, provides industrial services in EPC and wells services.

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Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 

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