Petrom Starts Temporary Closure Procedure of Arpechim Refinery

The National Environmental Agency of Pitesti yesterday suspended the Integrated Environment Authorization no. 2/30.11.2005, based on which the Arpechim refinery operated and instructed Petrom to stop the activity in the refinery. The National Environmental Agency of Pitesti justified its decision by Petrom"s failure to take two measures provided in the Action Plan of the Integrated Environmental Authorization issued for the activity of Arpechim Piteşti, namely the modernization of fixed and floating cover tanks for gasoline and the the shutdown of both the CAN waste lagoon and the biological mud lagoon. Petrom assesses that the second measure is fully completed and the documentation in this regard was already submitted to the agency.

Regarding the modernization of the gasoline tanks, the refinery representatives prepared to implement more extensive modifications than the ones in the compliance program which required the extension of the term. Due to the fact that the refinery representatives found that it was impossible to complete the above mentioned measure in due time (December 31st, 2006), a series of discussions was initiated with the representatives of the Environmental Authorities in order to identify the best solutions.

Currently, as per the decision of the National Environment Agency in Pitesti, the temporary closure procedure of Arpechim was started. According to Petrom officials, the company will do its best to reduce the impact on the fuel supplies and customers. In addition, Petrom will use all legal means to contest the measure decided by the National Environmental Agency in Pitesti.

Petrom does not intend to shut down or sell the Arpechim refinery, acoording to a company press release. Petrom plans to invest approximately 200 mn euros until 2010 for the modernization and efficiency increase of Arpechim.