Romanian Petrom To Defer Petrobrazi Refinery Upgrade Until ‘12

Also, Petrom aims to continue its planned investments in 2009, at a lower pace, mainly on the drilling and deposits development segments.

"This will be a year of great challenge for Romania and Petrom," Petrom’s general manager Mariana Gheorghe said in a press conference.

Petrom’s planned investments are screened and prioritized in order to be reduced to levels appropriate to the current financing situation and challenging environment, the company said in its financial report.

Petrom’s management proposed the stockholders that no dividends should be paid for 2008 and 2009 financial years, while the company would continue to secure external loans for its investment projects and corporate needs.

"In order to ensure the necessary funds to finance an already reduced investment budget compared to previous year, the management’s proposal is that no dividends should be distributed for 2008," according to Petrom’s financial report for 2008.

Petrom aims to take a EUR300 million unsecured loan from the European bank for Reconstruction and Development for environment investments. The company took late January a EUR500 million revolving loan from OMV group, to cover its financial needs.

The company’s 2008 investments were the highest in Petrom’s history, at 6.4 billion lei (EUR1=RON4.2810), up 68% on the year.

Also, Petrom sees the fuel and gas demand will be lower in 2009.

The oil company has two refineries in Romania, namely Petrobrazi and Arpechim, with a total annual refining output of eight million tons of oil, representing 40% of the country’s total processing capability.