Petrom
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| Type | Subsidiary of OMV (BVB: SNP) |
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| Industry | Petroleum |
| Founded | 1991 |
| Headquarters | PetromCity, Bucharest, Romania |
| Key people | Mariana Gheorghe, CEO |
| Products | Petroleum products, Petrochemicals, Microelectronics chemicals |
| Revenue |  3.56 billion EUR (2010) (Bucharest Stock Exchange reporting standard) |
| Net income | 321 million EUR (2007) |
| Total assets | € 13.19 billion RON[contradictory] |
| Employees | 24,662 (2010) |
| Parent | OMV |
Petrom (BVB: SNP) is a Romanian oil company, the largest corporation in Romania and the largest gas and oil producer in Eastern Europe operating in several countries:
- Romania - largest company;
- Moldova - 2nd largest company, 31% market share;
- Bulgaria - 3rd largest company, 18% market share;
- Serbia and Montenegro - 3rd largest company, 13% market share.
In the year 2010, Petrom’s share price embarked on an increasing trend, with a similar performance as in 2009. Price growth started from the beginning of the year, and after reaching its year low value of RON 0.252/ share on January 4, the share price increased to RON 0.335/share on December 30. Overall, Petrom’s share price increased by 35% on a full year basis, reaching its year high of RON 0.366/ share on April 9, outperforming the local and the international capital markets.
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[edit] History
In late 2004, Petrom was privatized by the Romanian state and sold to Austrian oil company OMV. As of 2005[update], it was the largest privatization deal in Romania's history. OMV controls 51% of Petrom's shares. The other shareholders are the Romanian state (40.74%), EBRD (2.03%), and others (6.23%).
Apart from its operations in Romania, the company operates in Bulgaria, Serbia, Hungary, Moldova, Kazakhstan, Iran and Russia. In Moldova it operates 73 filling stations, being one of the leading oil companies, alongside Lukoil. In Hungary there are 2 Petrom filling stations.
Petrom owned until 2005 a number of six offshore drilling platforms of which five, GSP Atlas, GSP Jupiter, GSP Orizont, GSP Prometeu and GSP Saturn were sold to Grup Servicii Petroliere for US$100 million.[1]
In January 2006, Petrom purchased OMV's operations in Romania, Bulgaria and Serbia and Montenegro.[1] As a result of the transaction, 178 OMV stations operating at the highest standards belong now to Petrom and will continue to operate under the OMV brand. With significant investments of €500 million until 2010 in the Marketing business alone, Petrom is attempting to consolidate its leading market position in South Eastern Europe.
In 2007 the company produced 5.5 billion m3 of natural gas and 191,000[2] bpd of crude oil.
In 2007, Petrom signs the construction contract for Petrom City, the new company headquarters.
In 2008, Petrom signed a contract to build power plant Brazi with the consortium of General Electric and Metka. The consortium will build and deliver turnkey by September 2011, will be producing electricity and steam combined cycle, which will run on natural gas. The contract value exceeds 400 million Euro.
From 1 January 2010, the Extraordinary General Meeting decided to change the name of Petrom oil company to OMV Petrom.[3]
On February 1, Rainer Schlang became member of OMV Petrom S.A.’s Executive Board, responsible for Marketing. He replaced Tamas Mayer, who took over new responsibilities within OMV Group.
In April 2010, Petrom expanded portfolio of its projects in terms of electricity production through the acquisition of 100% of the SC Wind Power Park SRL. Dobrogea Wind Power Park holds a draft of wind power generation for which all permits were obtained, with a capacity of about 45 MW. Petrom will build and operate a wind powerplant, which is expected to enter production in mid 2011.[4]
On May 18, Petrom announced the conclusion of a very successful offshore campaign in the Lebada Est and Lebada Vest fields, located at the Histria block in the Black Sea, using pioneering technology in Romania. Following this offshore campaign, additional production of more than 300,000 boe is expected in 2010 from two existing wells (LO2 and LO4) and a new well drilled (LV05).
On June 1, Petrom announced the start-up of the Hurezani gas delivery system, a project intended to optimize gas delivery into the national transportation network in periods when pressure in the system is very high.
On July 12, Petrom announced the signing of a 15-year production enhancement contract for several fields in the area of Ticleni, Southwest Romania, with Petrofac, a leading international provider of facilities solutions to the oil and gas production and processing industry. Petrofac will perform services in the respective fields in order to maximize production while improving operational efficiency. The partnership targets cumulative production enhancement out of nine onshore fields in the Ticleni area by at least 50% in the next five years.
On September 6, Petrom announced the sale of the 74.9% stake in Ring Oil (Russia) to its minority partner Mineral and Bio Oil Fuels Limited (MBO).
From October 1st 2010, Petrom has completed the consolidation of marketing activities in Romania in a single entity, OMV Petrom Marketing SRL.[3]
On November 24, Petrom announced two changes in its Executive Board. Starting January 1, 2011, by the decision of Petrom’s Supervisory Board, the Executive Board will have two new members: Daniel Turnheim, Chief Financial Officer and Hilmar Kroat-Reder, responsible for Gas and Power. The two new members succeed Reinhard Pichler and Gerald Kappes respectively, who took over new responsibilities within OMV Group.
In December 2nd 2010, Petrom inaugurated Petrom City, the headquarters that will host the company’s central operations. Situated in the Northern part of Bucharest, it will be used by around 2,500 employees from 7 headquarters of the company in Bucharest and Ploiesti. The employee relocation process started in the fourth quarter of 2010 and is estimated to be finalized in the first half of 2011.
In 2010, Petrom inaugurated Hurezani gas delivery system designed to optimize gas supply to the national transport network. The system includes a new compressor station at Bulbuceni, 11.5 km of new pipe station and a new measurement of the gas delivery point Hurezani to adapt to changing parameters of the gas flow and pressure.The total investment budgeted amounts to about 135 million euros.
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- 51.01% Österreichische Mineralölverwaltung OMV AG
- 20.64% AVAS (Agency for the Recovery of State Assets)
- 20.11% Property Fund S.A. (fund managing different stakes in Romanian companies, created by Romanian state in order to compensate the persons who suffered from the nationalization of their assets during the communist regime)
- 2.03% EBRD (European Bank for Reconstruction and Development)
- 6.21% Free float (around 500,000 private and institutional investors from Romania and from abroad)
[edit] Petrom and CSR
Țara lui Andrei [2], Parks for the future [3], (Park from Bucharest, Park from Moinești, Park from Pitești), Resources for the future [4], Building for the future, Support for the Future.
In 2010 Petrom continued its progress in developing and implementing a performance-oriented culture. In this regard, we developed and communicated the Petrom strategy for 2015 internally and externally and continued other performance-related initiatives: strengthening positive communication, making people objectives as important as business objectives, implementing a consistent performance management system, designing talent management process and programs and closing the communication gap between the HQ and territories. The ultimate objective of these programs is to develop the managerial base within Petrom and create a unitary organizational culture based on transparency and performance.
In 2010, TaraluiAndrei.ro became a community of over 240,000 citizens who wanted to change Romania for the better. Over 300 people all around the country submitted projects meant to solve a problem in their community. Petrom financed with EUR 110,000 a number of 23 projects for local communities, including refurbishment of learning units, selective waste collection systems, cleaning and building of green areas etc. About 390,000 people around Romania benefit from all these projects. In 2010, TaraluiAndrei.ro was elected by young Romanians as second most important volunteering platform in Romania (after Greenpeace) according to a GFK study. Over 2,000 people participated in volunteering activities in Andrei’s Country. Petrom's annual report, 2010
In 2010, 1,400 volunteers planted 46,000 trees on 9.5 hectares of land, transposing all online efforts of Andrei’s Country citizens into real actions. The planting actions took place in Ploiesti (Prahova) and Moinesti, two communities affected either by land slip or by lack of green spaces and where the company develops its daily business.
[edit] Petrom Cross
Petrom organized in 2008, 2009 and 2010 Petrom Cross, an event in which the company builds a bike trail meter for each participant. 4,200 feet (1,300 m) of trail bikes have been achieved from the 2009 and 2008 editions.
[edit] Privatization controversy
The Petrom privatization was realized during the last months of the Adrian Năstase government. In December 2004, OMV obtained a 51 per cent stake in SNP Petrom SA.[5]
Major Romanian newspapers published articles criticising the privatization of Petrom, on the grounds that last-minute unadvertised moves gave Petrom all of Romania's oil and gas reserves just before the privatization contract was signed. It was claimed that this move gave away the control of the country's national resources[6]
As a consequence, OMV/Petrom has a de facto monopoly on the oil production of Romania. Moreover, the state did not impose price controlling clauses in the privatization contract, so that Romanian-produced petroleum is sold in Romania at the same price as imported petroleum.
Internal company manoeuvres allowed the price to increase. As reported in Evenimentul Zilei (a leading daily newspaper in Romania), translated from Romanian:
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- At Petrom, 159 litres of gas cost 197 dollars. The price is 15 times bigger than the extraction costs from Romanian reserves. Freshly extracted, one oil barrel is worth 12 dollars, but the price increases to 46 dollars as it reaches the gates of the refinery.
- The OMV-Petrom case must be clarified. A simple computation shows that simply "selling" the oil between the Exploration-Extraction Division and the Refining Division brings OMV/Petrom a profit of some 32 dollars per oil barrel.
[edit] References
- ^ "GSP vrea platforme de foraj in Marea Nordului" (in Romanian). Săptămâna Financiară. 25 May 2007. http://www.sfin.ro/articol_9126/gsp_vrea_platforme_de_foraj_in_marea_nordului.html. Retrieved 4 January 2011.
- ^ Un baril din sase produsi de Petrom vine din Marea Neagra (Romanian)
- ^ a b Petrom şi-a schimbat denumirea în OMV Petrom(Romanian), adevarul.ro, accessed 14 December 2010
- ^ Petrom intră pe piața energiei eoliene prin achiziția Wind Power Park(Romanian), money.ro, accessed at 15 December 2009
- ^ http://romaniandaily.ro/cat53115/art1906058377
- ^ http://www.romanianewswatch.com/2007/09/interview-romanias-petrom-sale-probe.html
[edit] External links
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Wikimedia Commons has media related to: Petrom |
- Official Site (Romanian)
- Official Site (English)
- Annual Report 2008
- Respect for the future – results 2009
- Petrom on Facebook
- Petrom on Twitter
- Petrom on Youtube
- Petrom Press Office on Youtube
- Petrom on Flickr
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