Romanian government offers to buy Petrom's Arpechim refinery

09 September 2011 16:34  [Source: ICIS news]

BUCHAREST (ICIS)--The Romanian government is to make an offer to oil and gas company Petrom, which is majority-owned by Austria’s OMV, to buy its Arpechim refinery, trade and economy minister Ion Ariton said on Friday.

“We have expressed our intention to buy the refinery. On its part, OMV management said the company is willing to start negotiations as soon as possible,” Ariton said following a meeting in Bucharest with OMV’s CEO, Gerhard Roiss.

Petrom said in late March that it would close the Arpechim refinery after failing to find a buyer for it. Romanian chemical company Oltchim was also interested in purchasing the refinery, but no deal was concluded.

Last year, Oltchim bought the petrochemical unit of Arpechim with the intention of revamping and restarting it to secure ethylene supplies. The Arpechim units include a 200,000 tonne/year ethylene plant and 80,000 tonne/year low density polyethylene (LDPE) production line.

Petrom mothballed the units – which served as Oltchim’s key feedstock supplier – in late 2008. The Arpechim refining and petrochemical facilities are in Pitesti, southern Romania.

Oltchim’s product range includes caustic soda, petrochemicals, agrochemicals, inorganic products and building materials including polyvinyl chloride (PVC) insulating products.

For more on ethylene visit ICIS chemical intelligence

By: Marian Chiriac
+44 20 8652 3214

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