Romania: Rompetrol Rafinare’s contract with KazMunayGas

, SEE Energy News

Romanian refiner Rompetrol Rafinare, the owner of two refineries Petromidia and Vega, has signed a contract worth 10.3 billion dollars with Kazakh state-owned KazMunayGas, a member of its parent KMGI Group.

The signed contract is related to the supply of crude oil from Kazakhstan to Romanian refinery Petromidia located on the Black Sea coast in the next five years, namely until the end of 2025. Rompetrol Rafinare will pay for the supplied crude oil within 30 days from the delivery.

Rompetrol Rafinare recorded a 156 million dollars net loss in the first nine months of 2020, compared to a 26.9 million dollars net loss in the same period last year. The decline was due to an unprecedented volatility in the oil market, but also due to the influence of COVID-19 pandemic on the demand for petroleum products. Rompetrol Rafinare’s posted a negative consolidated operating result (EBITDA) of 21.66 million dollars in the January-September 2020 period, compared to a positive EBITDA of 101 million dollars in nine months of 2019. The drop was caused by unfavorable factors in the global environment, but also by the rapid decline in domestic and regional demand for petroleum products, especially car and aviation fuels, caused by the restrictions on travel introduced since the beginning of the pandemic. The company’s turnover dropped to 2.51 billion dollars from 3.9 billion dollars in the first nine months of 2019, mainly as a result of lower market quotations compared to the same period last year, along with a smaller volume of sales.