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September 29, 2022

Energy Ministry to nominate company that will establish investment fund with KMG International

In the upcoming period, the Energy Ministry will nominate the company that will take part, alongside KMG International, in establishing an investment fund worth almost USD 1 bln, on the basis of the terms of Government Decision (G.D.) no.35/2014, Energy Ministry Secretary of State Aristotel Jude stated on Tuesday at a conference on energy topics.

G.D. 35/2014 stipulates that “the Energy Ministry, through its Energy Department, is empowered to appoint a newly-established state-owned company that would take part, as representative of the Romanian state, in a Kazakh-Romanian investment fund set up and organised, on the basis of the law, as a joint stock company, hereby known as Fondul, in line with the provisions of this Article.”

According to the G.D.’s addenda, “the Fund will have an investment duration of up to 7 years. Investments of approximately USD 1 bln are estimated during the 7-year period, depending on market conditions.”

Ministry sources pointed out that the agreement will not expire and the fund will be set up in the following months. According to them, the company that will handle the setting up of the fund could be the Company for the Management of Energy Contributions (SAPE).

“According to G.D. 35/2015, we have to establish a new company or to nominate one that was established after the date on which this G.D. was approved, and SAPE meets the latter case. A decision could be taken right this month,” Energy Minister Victor Grigorescu stated.

According to some sources, the investment fund will have a registered capital of USD 150 M at first, KMG International’s contribution totalling USD 30 M.

The memorandum signed by Rompetrol and the Romanian state was approved by the Government at the end of January 2014. The document stipulates that Rompetrol will buy 26 percent of Rompetrol Rafinare for USD 200 M. Likewise, the memorandum stipulates the setting up of a joint investment fund worth USD 1 bln.

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