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September 27, 2021
BUSINESS

OMV Petrom completes modernization of Petrobazi Ploiesti refinery

The OMV Petrom oil company announced on Saturday the completion of its modernization program at the Petrobrazi Ploiesti refinery, after investments of EUR 600 M in the last four years.
On Saturday the refinery marked 80 years since its establishment. The event was attended by Premier Victor Ponta, OMV Petrom Supervisory Council Chairman and OMV CEO Gerhard Roiss, Manfred Leitner – member of the OMV Directorate responsible for Refining and Marketing, OMV Petrom CEO Mariana Gheorghe, and Neil Anthony Morgan – member of the OMV Petrom Directorate responsible for Refining and Marketing.
OMV CEO Gerhard Roiss pointed out that the refinery’s modernization was essential for the group’s activities.
“We are very proud that through the investments made in Petrobrazi we are contributing to the continuation of a tradition spanning 80 years. A modern, competitive refinery that delivers fuel at the same standards of quality as all OMV Group refineries is essential for the hiking of efficiency and the putting to good use of OMV Petrom’s characteristic of being an integrated company,” Gerhard Roiss stated.
“The modernization of the Petrobrazi refinery was a necessary step in order to adapt to the specificity of the Romanian market, which modified substantially compared to the moment the refinery was designed. The hiking of the production of diesel oil, coming as a result of the modernization process, will contribute to the lowering of Romania’s diesel oil imports, having a positive impact on the current account deficit,” Petrom CEO Mariana Gheorghe stated in her turn.
At the same time, Manfred Leitner, responsible with the Refining and Marketing activity within OMV, stated that although the investment program had been set at EUR 750 M, in the end the investments totaled EUR 600 M.
Premier Victor Ponta emphasized that the partnership that Romania develops with OMV is very important. “This partnership has created the premises for Romania – and when I say Romania I also refer to the Republic of Moldova – to become energy independent. Ever since the first talks with Mr. Roiss I emphasized how this thing is important for a country,” Ponta pointed out. The Premier also reiterated that the government and the companies did not always see eye to eye, referring to the tax on special constructions. In this context, Victor Ponta reminded that the government he leads has decided to lower the special constructions tax from 1.5 to 1 per cent.
Petrobrazi refinery’s history started with the setting up of the Creditul Minier refinery in 1934, which had a refining capacity of approximately 300,000 tons per year. Almost completely destroyed in the Second World War, the refinery was rebuilt and reconfigured throughout the years, in relation to the market context and the shareholders’ strategy. The refinery’s current production covers approximately 47 per cent of Romania’s fuel needs.
After privatization the investments in Petrobrazi totaled approximately EUR 1.1 bln, of which EUR 600 M were invested in the last four years. The most recent modernization program, which unfolded from 2010 to 2014, had as its main objective the hiking of the refinery’s competitiveness. With an adjusted capacity of 4.2 million tons per year, Petrobrazi can fully process OMV Petrom’s production of oil in Romania. The Petrobrazi refinery now has a Nelson Index (which shows the complexity of installations and equipments – editor’s note) of 11.28, the highest in the region.
As a result of the modernization process, diesel oil and kerosene will have a share of up to 45 per cent in the structure of products obtained at Petrobrazi, while the production of diesel oil will be higher by more than 60 per cent compared to 2009.
Likewise, the modernization of installations has led to the lowering of the total energy consumption by approximately 40 per cent compared to 2004.
OMV, the biggest industrial company listed in Austria, holds 51.01 per cent of OMV Petrom’s shares. The Romanian state holds 20.64 per cent of the shares through the Economy Ministry’s Energy Department, the Property Fund owns 18.99 per cent, and 9.36 per cent of the shares are floated freely on the Bucharest Stock Exchange.

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