Romania’s Rompetrol Gas Buys 150 LPG Stations From Local Businessman Cristi Borcea

Rompetrol Gas, the liquefied petroleum gas (LPG) trading unit of the country’s second-largest oil group Rompetrol, took over, from three companies owned by local businessman Cristi Borcea, 150 LPG stations and the due supply contracts, the company announced Tuesday.

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“Romania’s Competition Council authorized Rompetrol Gas’s purchase of 150 Liquefied Petroleum Gas stations owned by companies Crimbo Gas 2000, Auto Gaz Trading Constanta and Crimbo Gas International, alongside with the LPG supply contracts signed with third parties," the institution announced in a press release.

The transaction supports the company’s 2008 objective of extending its activities, both in Romania and abroad, following $20 million investments by the end of the year, the company’s general manager Toma Veron said Tuesday in a press release.

In June, Rompetrol Gas acquired the main stake in MoldInterGaz Moldova.

Rompetrol Gas will lease the 150 LPG stations for a five-year period, and the assets will be acquired afterwards.

"The value of the transaction is confidential, according to the contract’s clauses," Veron added.

Rompetrol Gas operates 70 LPG stations, over 5,000 gas cylinders’ distribution units and two LPG bottling stations, in the town of Arad, western Romania and the southeastern city of Constanta, respectively.

The company aims to open another LPG bottling station in 2008, in the city of Bacau, eastern Romania, in a $10 million investment.

Rompetrol Gas eyes $100 million revenues in 2008, almost double compared with $54 million a year before.

The Rompetrol Group, founded by oil tycoon Dinu Patriciu, operates 40 companies in 13 countries and employs over 8,000 people. Its main assets are located in Romania, France, Spain and southeastern Europe.

In August 2007, Kazakhstan's KazMunaiGas bought a 75% stake in Netherlands-based Rompetrol Group, which was valued at $3.6 billion, indicating a payment of some $2.7 billion for the equity.

The most important players on the Romanian LPG market are Butan Gas, Petrom Gas, Rompetrol Gas, the local units of Russia’s LukOil and Hungary’s MOL.

In 2008, businessman Cristi Borcea sold his companies Crimbo Gas Giurgiu, Crimbo Gas 2003 Caracal, Crimbo Gas Faurei and Crimbo Gas Zlatna to Dutch SHV Gas.

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