OMV Petrom To Put Gas Distribution Unit On Sale

05.01.2011 By Andrei Circhelan

Romania's largest oil company OMV Petrom (SNP.RO) will try again to sell natural gas distributor Petrom Distributie Gaze, after a failed attempt in 2008.

Romania's largest oil company OMV Petrom (SNP.RO) will try again to sell natural gas distributor Petrom Distributie Gaze, after a failed attempt in 2008.

"We will pursue our decision to exit the non-core businesses, such as the gas distribution activity. (…) Petrom will continue to look for a qualified partner to take over Petrom Distributie Gaze S.R.L., to further develop this company and to guarantee continuity in its activity. In 2010, this process was suspended due to the financial crisis," Petrom said in its annual report.

Petrom Distributie Gaze was founded in 2007 and it has some 14,000 clients, especially in rural areas.

Last year, OMV Petrom raised the distributor's share capital by 50.2 million lei (EUR12.34 million), to RON53.3 million, through cash contribution.

Petrom is 51.01% owned by the OMV group, while the Romanian Economy Ministry holds 20.64% and investment fund Fondul Proprietatea (FP.RO) holds 20.11%. (EUR1=RON4.076)