"Rafo" Onesti would work free of charge for "Petrom"to pay its debts

The "Rafo" refinery might pay its debt to "Petrom" (almost ROL 1,500 billion) processing free of charge the crude oil in the Moldova basin for "Petrom", during the next three years. Mr. Paul Ivascu, general manager for "Rafo", declared that this is a perfectly viable project, it was already submitted to "Petrom" which is inclined to agree. According to this plan, "Rafo" agreed to work for free one week per month, on behalf of "Petrom", for three years. According to our sources within the Ministry of Economy and Commerce, the main shareholder of "Petrom", the company might take advantage of its real estate guarantees in "Rafo", reaching ROL 1,550 billion. The same sources confirmed negotiations with "Rafo", but, according to them, negotiations are still ongoing. Anyway, the problem of "Rafo" debts towards "Petrom" is expected to be solved before the privatization of the latter. Several companies of the Tender Group took over "Rafo" debts last year, committing to pay through services.

Mr. Paul Ivascu stated that "Rafo" requested this deal to be suspended for three years, allowing "Rafo" to pay its debts to "Petrom" by its own means.

By the end of this month, "Rafo" shareholders will meet to debate on some proposals issued by managers concerning the acquisition of several assets, in order to set up a network of gas stations. The "Rafo" strategy for the next two years includes a network of 80 gas stations to be built (approximately USD 45 million), plus several local fuel ware-houses. Shareholders will also decide on "Rafo"'s participation in the equity capital of "Top Oil". The other shareholders are "Tender" SA (50% of the equity capital) and VGB Invest (40% of the equity capital). VGB Invest is also shareholder in "Balkan Petroleum", currently owning 90% of "Rafo". The "Rafo" managers also proposed to sell stakes owned by the company in "Rafo Trans" SRL and "Iaco Invest" SRL.