COPY-PASTE ANSWERS The Ministry of Energy is dragging its feet on the memorandum with Rompetrol

The memorandum of understanding concluded in 2013, between the Romanian state and the former The Rompetrol Group NV (currently KMG International) has been extended until June 30 and a new schedule for its implementation will be set, according to a response sent by the Ministry of Energy, upon an enquiry by "BURSA". The response is almost identical to the one sent by the Ministry in February, whereby it was informing us that the Memorandum had been extended until April.

Basically, in April, the discussions were at the same stage as in December and they will probably be at the same stage in June.

The Ministry of Energy told us: "Through an additional act concluded on March 30, 2017, the Memorandum of Understanding between the Romanian state and the former The Rompetrol Group NV has been extended until June 30, 2017.

During this time will continue the debate of the aspects tied to the implementation of the Memorandum of Understanding, including a new calendar of the implementation of its provisions with the deadline for the effective carrying out of the operations to implement the Memorandum to be set according to the agreed upon calendar".

The memorandum signed in 2013 stipulates the fact that Rompetrol (currently KMG International) will acquire a stake of 26% in Rompetrol Rafinare for 200 million dollars, as well as the creation of a common investment fund of one billion dollars.

Senators in the Economic, Industries and Services Commission, have issued a negative opinion, in September 2016, on the draft law concerning the approval of the Memorandum of Understanding signed between the Romanian state and The Rompetrol Group N.V. on February 15th, 2013.

On Thursday, the draft law also received a negative opinion from the Commission for Constitutionality, civil liberties and oversight of the execution of decisions of the European Courts of Human Rights in the Senate.

In December 2016, the National Company KazMunayGas Kazahstan and CEFC (China Energy Company Limited) have signed an agreement, which certifies the commitment to perform the transaction to buy 51% of the shares of KMG International, announced in April 2016, after "both parties have clarified certain legal and technical aspects of the agreement".

In May 2016, the DIICOT prosecutors have seized 3 billion lei worth of assets and shares of "KazMunayGaz International NV" (former The Rompetrol Group NV), "Oilfield Exploration Business Solutions" (former "Rompetrol") and "Rompetrol Rafinare", in a new case against "Rompetrol", severed from the case taken to court in 2006, when Dinu Patriciu was tried along with other individuals.

Furthermore, information had appeared in the press that prosecutors were also investigating the Memorandum of Understanding with Rompetrol.

The Romanian state, through the Ministry of Energy, owns 44.69% of "Rompetrol Rafinare", while "KMG International" NV has 48.11% of the capital.