Russian-British company TNK-BP is the first investor to drop out of the Petrom race, even before being granted access to the data room of Romania's largest company. Economy and Trade minister Dan Ioan Popescu yesterday disclosed the identity of the first investor of the shortlisted eleven that decided to quit the race. The remaining investors are expected to submit non-committing offers (price not included) by November 21. Ten companies are left in the race, of which only one is Russian - gas giant Gazprom. Also still in the competition for Petrom are American companies Occidental, Conoco Philips and Alon, Italian group ENI, trading company Glencore (Switzerland) and a group of companies interested to expand in the area, such as OMV (Austria), MOL (Hungary), PKN Orlen (Poland) and Hellenic Petroleum (Greece).
"TNK BP has sent a written notification, announcing it is no longer interested in participating in the privatisation of Petrom. The company withdrew before being granted access to the data room; we have this official letter from TNK BP in our possession," said the Economy minister, who did not reveal the reasons behind the company's decision.
"TNK BP (among the first companies to have submitted an expression of interest in Petrom) was not interested in the company's gas production, which is part of Petrom's portfolio. The company's officials were hoping for a breach in the sale of Petrom, in order to take over only those assets TNK BP was interested in. They decided to withdraw from the Petrom race in October," market sources told Ziarul Financiar.
According to more market information, TNK BP does not have enough cash to take over 51% in Petrom, a stake whose value was estimated at $1-1.4 billion by analysts. The Romanian State is selling 33.34% in Petrom to the strategic investor, who will then participate in a capital increase, in order to come to hold 51% in the company.
TNK BP officials could not be contacted for comment by press time.
TNK BP had been scouting for a powerful law firm on the Romanian market in the past few months, able to provide the necessary legal counselling for the Petrom transaction. According to market sources, the company was at some point in talks with Popovici & Asociatii law practice.
TNK BP is Russia's third-largest oil group, after YukosSibneft and LukOil, and the world's tenth-largest. With $6bn in annual turnover, TNK BP was born this summer, as a joint venture held by the UK's oil giant British Petroleum and a Russian consortium comprised of the Alfa group and two companies - Access Industries and Renova. adrian.mirsanu@zf.ro
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