KazMunayGas International (KMGI) and the Energy Ministry have signed the partnership contract that sets up the Kazakh-Romanian Energy Investment Fund on Friday, KMGI informed.
The fund has been established according to the Understanding memorandum between Romania and KMGI (former Rompetrol group). The Kazakh-Romanian investment fund expects an investment level of around USD 1 billion for 7 years.
The KMGI contribution to the capital of the fund is USD 150 million, while a part of it, the Romanian state’s contribution worth USD 30 million, will be paid by KMGI.
KMGI owns 80 pc of the fund’s shares, while Romania 20 pc. The main priority of the fund aims at developing the energy projects in order to contribute to the energy sector in Romania, as well as to enhancing the energy security of the country by diversifying the oil supplying sources.
KMGI says it has already identified two major projects, with an investment value of over USD 200 million that could create 2,000 jobs in Romania.
One of the projects is related to the construction of a cogeneration plant (which produces both energy and thermal energy) on Petromidia platform, in partnership with Midia Thermoelectric Plant. The plant will be able to supply with energy both the town of Navodari and also Petromidia refinery. The investment is mounting to USD 120 million, with a completion deadline of 4 years since the start of the construction works.
Another project refers to the expansion by about 80 stations of the oil station network on the local market. The new stations will be developed by greenfield investment, with the total estimated sum at stake mounting to USD 100 M.