When Petrom sells petrochemical unit, Rompetrol invests $18m in capacity

Rompetrol Petrochemicals, the petrochemical unit of Rompetrol oil group controlled by Kazakhstan's KazMunaiGaz state-owned company, says it will invest $18m (13.5m euros) to boost by 70% the capacity of the high-density polyethylene installation by March 2011. The company's polyethylene installation was halted in 1996 as a result of the raw material shortage, and in 2007 was restarted in the wake of several investments worth 14.5m dollars (9.8m euros). Last year, the market experienced serious problems amid the falling international quotes of petrochemicals and contracting demand. Domestically, Rompetrol's move to invest in the petrochemical segment is all the more surprising as its direct rival Petrom last year decided to sell the petrochemical segment to Oltchim chemical plant, in a 13m-euro deal. The petrochemical segment is not the only one where Rompetrol and Petrom strategies diverge. Thus, while Rompetrol will go ahead with its plan to boost the capacity of Rompetrol Rafinare (Petromidia), Petrom announced it wanted to sell Arpechim refinery and at Petrobrazi will cut the refining capacity amid an oil processing overcapacity in Europe.