The main shareholder of the Petromidia and Vega refineries says that no decision has yet been made on its privatization
KMGI, the main shareholder of the Petromidia and Vega refineries, announced that no decision has yet been made on its privatization in Kazakhstan, as it is a standard and long-term process, in which numerous factors are taken into account.
“In the context the information that appeared recently in Romania and taken from the press in Kazakhstanplease find below the official position of KazMunayGas – the sole shareholder of KMG International (KMGI).
We note that the news that recently appeared in Kazakhstan was generated by the publication of information from the “Agency for the Protection and Development of Competition.”, informed KazMunayGas.
According to her, “drawing up a Complex Privatization Plan of various assets is a common practice. The list may include companies from various sectors. It is a standard and long-term process in which many factors are taken into account.
As for KMGI, the company is operating normally, achieving production and financial indicators. In this regard, we declare that currently no decision is being taken regarding the privatization of KMGI.”
According to information recently published by the Kazakh authorities, the state group intends to auction KMG International NV (KMGI), the wholly owned subsidiary of KazMunayGas, in the period 2026-2027.
The auction will be held in two stages and will allow private investors to acquire up to 50% of the holding, which coordinates refining and retail operations in Europe, according to caliber.az.
In Romania, KMGI owns 48.11% of the shares of the Petromidia and Vega refineries, as well as a petrochemical complex, terminals and a network of about 1,400 gas stations under the Rompetrol brand. Petromidia, with a processing capacity of almost 5 million tons of crude oil per year, is considered the largest and most complex refinery in Romania.
“The objective of the transaction is to attract a strategic partner. Currently, KMGI is fully owned by KazMunayGas and is made up of 28 companies from Romania, Switzerland, Bulgaria, Georgia, the Republic of Moldova, Turkey and Kazakhstan. The holding owns two refineries in Romania – Petromidia and Vega – a petrochemical complex, terminals and a network of 1,400 gas stations under the Rompetrol brand”announced the authorities of Kazakhstan.
According to the cited source, the company sources crude oil both from Kazakhstan and from international suppliers, and between 2017 and 2021 KMGI's annual revenues ranged from $4.8 to $11.6 billion.
KazMunayGas justifies the sale as a “strategy to attract strategic investments and increase operational efficiency of European operations” while maintaining a significant presence in the global energy market.
Recent upgrades at the Romanian refineries were preceded by similar work at the company's facilities in Atyrau, Pavlodar and Shymkent.
The move comes in a wider context where KazMunayGas is in talks with Russian group Lukoil over assets in Kazakhstan.
We remind you that recently the USA and Great Britain imposed sanctions against major Russian oil companies, including Lukoil, after the invasion of Ukraine, which affected their international transactions.
