Petrom Pays State 547.7 Mio RON Royalties For 9 Months

Nine months through the year, Petrom, a subsidiary of the Austrian-based oil group OMV, paid the Romanian State royalties in the amount of 547.7 million RON for the oil fields conceded from the National Mineral Resources Agency (ANRM), ANRM President Bogdan Gabudeanu told NewsIn on Tuesday.

Of this amount, 349.1 million RON was paid as royalties for oil and 198.5 million RON as royalties for gas. In 2007, Petrom paid royalties in the amount of 524 million RON, of which 282.6 million RON for oil and 241.4 million RON as royalties for natural gas.

Petrom and Romgaz generate approximately 80% of the overall royalties, whereas the remaining 20% come from the concessions for the areas bearing solid resources (coal, sand, gravel etc): the Turceni Energy Complex, the Oltenia National Lignite Company, the Rovinari Energy Complex, the National Pit Coal Company, Carpatcement, Lafarge, Cuprumin, Holcim and Salrom.

According to the Oil Law, the State is entitled to royalties for the concession of oil fields via the ANRM. According to the law, such oil fields are usually conceded for up to 30 years. The actual duration of the agreement depends on the deposit in each oil field and the production capacity, ANRM specialists explained.

ANRM is the governmental institution in charge of issuing mining licenses. Petrom operates in the fields of Exploration & Production, Refining & Petrochemical Products, Marketing, Natural Gas & Energy and is currently exploiting proven oil & gas resources of approximately 0.9 billion in oil equivalent barrels. The company has a maximum refining capacity of 8 million tons per year and approximately 550 fuel stations in Romania. Petrom also owns an international network of 257 fuel stations in the Republic of Moldova, Bulgaria and Serbia.

The Austrian-based OMV holds 51.011% in Petrom. The State Assets Recovery Authority (AVAS) holds 20.64%, while Fondul Proprietatea holds 20.11%. The European Bank for Reconstruction and Development holds 2.026%, while various minority shareholders hold 6.214%.