Business Review

Oltchim’s minority shareholder remains confident of securing a further stake in the chemical maker’s privatization. Wojciech Zaremba, business development director of Petro Carbo Chem (PCC), told Business Review that the acquisition of the petrochemical division Arpechim could be disastrous for the struggling firm and will not reverse years of losses. He believes that Oltchim needs to spend EUR 200-250 million on new greenfield projects over the next two-three years to become a financially viable business. 

The two national energy companies are now taking shape – the project finally received government approval at the end of last week. Specialists say this is just a short-term solution, as the formula adopted merely channels money from the profitable energy companies to the less efficient ones.

By Dana Ciuraru

The oil and gas company Petrom has recently acquired the Kazakh company Korned LLP, which owns the exploration license of the onshore Kultuk oil deposit. 

Szabolcs Ferencz, VP and corporate communications at MOL Group will replace Zsolt Szalay as country retail manager and country chairman at MOL Romania, starting January 1, 2010. 

Falling prices, hold-ups in ongoing wind energy projects and long delivery periods for technologies, depending on the financial credibility of the developers – this is how Carmen Neagu, country executive for Romania, Bulgaria and Moldova at American giant GE Energy, summed up this year’s local energy market for Business Review.
By Dana Ciuraru

The local thermo power plant scene continues to be the black hole of the energy system. Constant increases in fuel prices and a lack of investment in this sector mean the state finds itself continuously having to subsidize the cost of heating for the public. But market specialists say the Economy Ministry's plan to include these units in one or two national energy champions is not the best solution to put the thermo system back on the track. By Dana Ciuraru

Oil price continues to hike on international markets. Because of this, local oil market players estimate that next year Romanians will have to spend 5 percent more on fuel.
By Dana Ciuraru

Running out of money and dependent on cash infusions from international financial institutions, Romania now finds itself unable to afford important projects such as its investment in nuclear units 3 and 4 at Cernavoda. As a possible solution, the state is flirting with the idea of reducing its stake in the project company to the benefit of other partners involved in the project. Also, a veil of doubt has been cast over Romania's capacity to finance its share of the Nabucco pipeline project, as next year the management company will sit at the negotiation table with international financial institution to get the money for the development. For Romania, this will mean new guarantees and actual money for investments in the project.
By Dana Ciuraru

In the light of the fall in industrial companies' electricity consumption, energy producers are shifting the focus to smaller customers, hoping to pick up some new clients. This could imply that the current economic context is a good reason to bargain down electricity prices. But large consumers say that prices are instead likely to increase, as energy producers have not put electricity for 2010 up for sale, arguing that the imminent establishment of the two state energy companies is likely to send energy prices soaring.

Despite months of discussions and scenarios, the creation of the two state energy companies is far from a fait accompli. State officials disagree on the type of management for the companies, the people in charge, the Bucharest Stock Exchange listing, the Property Fund's stake in these companies and what will happen with the ongoing contracts of the firms that will form the state-controlled energy giants.
By Dana Ciuraru