OMV could become regional chemical leader through Turkey Petrol purchase
By Will Beacham on 27 October, 2010 in Uncategorised
Austria’s OMV has been trying to transform itself into a regional oil refining hub for some time through the acquisition of Romania’s Petrom and, on 22 October, by boosting its stake in Turkey’s Petrol Ofisi from 42% to 95% though an E1bn deal.
This deal gives it opportunities for further growth in chemicals. ICIS news reports that OMV is considering whether Petrol Ofisi should offer to buy a minority stake in a $4.9bn (€3.5bn) initiative, centred on a 15m tonne/year refinery in the port of Ceyhan in southern Turkey.
The Ceyhan project’s investors so far are Turkey’s Calik Holding, Kazakhstan’s KazMunaiGaz (KMG) and the Indian Oil Corp (IOC). Ceyhan is the terminus for the new Baku-Tbilisi-Ceyhan (BTC) pipeline that delivers Caspian Sea crude oil.
Moody’s Investors Service says the deal gives OMV the chance to develop a third business hub. In analysis released after OMV said Petrol Ofisi could channel investments into refining, petrochemical and gas opportunities in Turkey, specifically via the purchase of a stake in a 15m tonne/year refinery in the port of Ceyhan in southern Turkey: “Moody’s recognises that this transaction is consistent with OMV’s strategy to position itself along the European Growth Belt.
“More specifically, the acquisition of Petrol Ofisi will allow OMV to accelerate the process of developing Turkey as a third integrated business hub [besides Austria and Romania].”
OMV committed to buying majority control of Petrol Ofisi – Turkey’s largest fuel retailer – on 22 October
About Will Beacham
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