27 May 2011 11:13 [Source: ICIS news]
BUCHAREST (ICIS)--Oltchim has made an undisclosed offer to Romanian oil and gas company Petrom to buy its Arpechim refinery, the unprofitable Romania-based chemical company said on Friday.
“We can pay cash for the refinery and hope Petrom will respond to our offer as soon as possible,” Oltchim CEO Constantin Roibu said.
He added that by buying Arpechim, Oltchim would become a fully integrated company, making it more attractive to investors ahead of its privatisation.
Oltchim aims to conclude the deal with Petrom before the Romanian government sells its 54.79% stake in unprofitable Oltchim by the end of this year, Roibu said.
A spokesperson for Petrom would not comment on Oltchim’s offer.
Petrom, which is majority-owned by ?xml:namespace>
The move caused difficulties for Oltchim, which last year bought Petrom’s mothballed Arpechim petrochemical unit, including a 200,000 tonne/year ethylene plant located adjacent to the Arpechim refinery.
Oltchim purchased the petrochemical unit with the intention of revamping and restarting it to secure ethylene supplies.
The Arpechim refining and petrochemical facilities are located in
The site also contains an 80,000 tonne/year low density polyethylene (LDPE) production line, which is linked to Oltchim’s facilities in Ramnicu Valcea by pipeline.
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