OMV to spend €1 bln on Romanian unit Petrom by 2010
OMV is planning to spend €1.1 billion on developing Petrom, increasing crude distillation capacity about 30%.
OMV AG, central Europe's biggest oil company, is planning to spend €1.1 billion ($1.4 billion) to develop its Romanian unit, Petrom SA, through 2010, a company executive said. The developments will include increasing the annual crude distillation capacity of Petrom's Petrobrazi refinery to 6 million tons from the current 4.5 million tons, Jeffrey Rinker, a member of Petrom's management committee, said at a conference yesterday in Budapest, the Hungarian capital.
Vienna-based OMV is also planning to build a hydrocracker with an annual capacity of 2 million tons by 2010, Rinker said. Hydrocrackers convert heavy hydrocarbons into lighter fuels through the addition of hydrogen. The Austrian company will also add a new pipeline to connect the Petrobrazi facility with Petrom's Arpechim refinery. OMV bought a 51% stake in Petrom in December 2005 for €1.5 billion. The purchase included access to the company's oil-exploration rights in Romania and abroad. (Bloomberg)
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