Transcript Titlu Slide - Swiss-Kazakh

The Rompetrol Group
Corporate Presentation
The Rompetrol Group:
A solid investment and
a long term commitment
Our Strategy
Romania, the bridge for the Kazakhstan resources to Western Markets
Kazakhstan and Romania: A long term partnership
The energetic bridge between Asia and Europe
Rompetrol acquisition is the first step of the expansion strategy into the European refining and distribution segment and a
critical strategic move to build the energy bridge between Kazakhstan and Europe. This requires a long term commitment to
Romania and a clear partnership relationship.
The Rompetrol Group HQ
Representative Offices
Crude
Refining & Services
Products
Storage & Distribution
Our Strategy
Romania, the bridge for the Kazakhstan resources to Western Markets
Kazakhstan facts
 5,300 million tones reserves of crude oil
(representing 3% of the world total);
 80 million tones production in 2012;
 130 million tones production by 2020 (75% for
export);
 12 million tones/year refining capacity of
existing three Kazakhstan refineries;
KazMunayGas is pursuing
 Capitalize on Romania as a geo-strategic
location to bridge Eastern resources and
Western markets;
 Logistical outlets to sell crude oil and products
outside land-locked Central Asia closer to final
consumers;
Black Sea Region: A getaway to Europe
Romania – A strategic position
Black Sea region counts 160 million people;
Bosporus has become bottleneck for access to Western Europe for sea transport. However, pipeline projects north of Bosporus
are in progress, supported by central and western European countries and EU leadership;
Emerging economies, like those surrounding Black Sea, are growing at fastest rate in Europe.
Oil
consumptio
n million
tones
Austria
Belgium
Bulgaria
Czech Rep.
France
Germany
Greece
Hungary
Italy
Kazakhstan
Netherlands
Poland
Portugal
Romania
Slovakia
Spain
Switzerland
Turkey
Ukraine
2006
2007
2008
2009
2010
2011
14.1
33.4
4.7
9.8
93.0
123.6
22.1
7.8
86.7
10.3
52.0
23.3
14.4
10.3
3.4
79.4
12.6
32.7
14.2
13.4
33.7
4.6
9.7
91.4
112.5
21.7
7.7
84.0
11.3
53.5
24.2
14.4
10.3
3.6
80.4
11.3
33.5
15.6
13.3
36.8
4.6
9.9
90.8
118.9
21.3
7.5
80.4
11.1
51.1
25.3
13.6
10.4
3.9
78.0
12.1
31.9
14.9
12.8
32.2
4.2
9.7
87.5
113.9
20.1
7.1
75.1
9.0
49.4
25.3
12.8
9.2
3.7
73.6
12.3
31.6
13.4
12.9
33.5
3.8
9.1
84.4
115.4
18.7
6.7
73.1
9.5
49.9
26.7
12.5
8.7
3.9
72.1
11.4
30.2
13.0
12.5
33.7
3.5
9.1
82.9
111.5
17.2
6.5
71.1
10.2
50.1
26.3
11.6
9.0
3.7
69.5
11.0
32.0
12.9
Rompetrol: The right expertise in the right place
The energetic bridge between Asia and Europe
Rompetrol is the entry point for
Western and Central Europe
Educated and cost competitive labor
Vast experience in oil and gas
industry
Over 150 years of crude production
and refining operations
Higher technical standards compared to capacities in neighboring countries, e.g. Turkey and Ukraine lacking Euro5
standards, preventing access to European market;
Excess capacity in Romania allows better quality/price ratio at acquisition;
Actively pursuing partnerships to diversify its oil and gas supply sources from Russian predominance;
Good political relations between Romania and Kazakhstan. Romania was the first to recognize independent Kazakhstan;
The Rompetrol Group:
General Presentation
The Rompetrol Group – Management Team
Zhanat Tussupbekov
CEO, The Rompetrol Group, NV
Mariana Durleșteanu
Chief Financial Officer,
The Rompetrol Group, NV
Alexandru Nicolcioiu
Vice-President,
The Rompetrol Group, NV
Felix Lunev
Senior Vice-President,
The Rompetrol Group, NV
Azamat Zhangulov
Senior Vice-President,
The Rompetrol Group, NV
About Us
General information on The Rompetrol Group
Operations in 12 countries
worldwide: Romania, Republic of
Moldova, Georgia, Bulgaria, Spain,
France, Kazakhstan, Ukraine, Libya,
The Netherlands , Switzerland; and
Turkey;
Activities in almost every field of the
oil & gas industry and a European
retail network of over 1,100 fuel
distribution points;
Over 7,000 employees in the
whole Group;
A turnover of 10,8 mld USD in
2012.
BU’s Presentation
Refining
&
Petrochemicals
The biggest refinery
capacity in Romania
5 million tons,
Petromidia.
Trading
& Retail
Total storage capacity
of 1.3 million cubic
meters in Europe.
1,100 fuel distribution
points spread in the
whole Europe.
Upstream
& Industrial services
Expansion in
existing markets
through capital
investments,
partnerships and
acquisitions.
The Rompetrol Group:
Refining
& Petrochemicals
Division Refining & Petrochemicals
Products and Capasity
100,000 barrels per day (5 million tons per year). Based on market
price conditions for crude oil and oil products and on the analysis of
financial indicators, the refinery is run at 3.8 – 4.2 million tons per
year.
Products: automotive gasoline, diesel fuel, Jet fuel, LPG, coke,
sulfur.
Unique location
Petromidia Refinery is he only Romanian refinery located on the
Black Sea shore, thus having the advantage of direct raw
material supply from the oil terminal in Midia port.
Petromidia Refinery
Crude oil processing dynamics in 2005-2012 and planned
processing for 2012-2015 period
Crude oil processing,
tons
Technological losses, %
Since 2005 the company is systematically working on improving the efficiency of its production activity being
supported by the consultancy company Solomon Associates.
As a result of this actions the operating activity was optimized, including the reduction of technological losses
down to minimal historical values.
PEM workflow after modernization
Petrochemicals
Petrochemical complex
The only in Romania manufacturer of polypropylene, high (HDPE)
and low (LDPE) polyethylene.
Integration with Petromida Refinery:
Rompetrol Petrochemicals products are sold both on the internal
market and on the regional markets (Black and Mediterranean
seas areas, Central and Eastern Europe)
Possibilities
Location on the Black Sea shore, free access towards road and
railroad infrastructure
Ethylene supplies through Berth 9A
Capacities for storage of ethylene in the sea terminal
Possibility of dispatching finished products in big-bags and
containers
Strategy
Increasing of local and regional market share by means of
increasing the productivity of the existing HDPE and LDPE units
and construction of new facilities
Development of new grades showing high demand on the market
The Rompetrol Group:
Trading & Retail
Retail Business Unit
Over 1,100 fuel distribution points
(Romania, Bulgaria, Republic of
Moldova, Georgia, Ukraine, France
and Spain).
Innovative products and services:
Efix, Efix S, Fill&Go, Litro, Hei.
Strategic priorities are to consolidate and expand the distribution network (locally and
internationally), launch ergonomic distribution concepts and constantly improve the quality
of services and products.
Retail Network in Romania
COCO* Network
Network:
Coverage:
DODO** Network
131 locations
all counties
Network:
156 locations
Coverage: 36 counties + Bucharest
SM
BN
SJ
BH
SV
CJ
HR
MS
AR
AB
HD
TM
CS
BC
CV
SB
VN
BV
VL
GJ
IS
NT
AG
BZ
PH
DB
OT
DJ
GR
TR
BH
TM
CJ
CS
Gas Network
HR
MS
BV
SB
GJ
MH
CT
NT
AB
HD
TL
SV
BN
SJ
AR
GL
IL
I
F CL
MH
MM
SM
VS
BR
Network:
Coverage:
123 locations
26 counties
BT
High concentration
Medium concentration
Low coverage
BT
MM
Express Network
DJ
VL
VN
BZ
PH
DB
OT
TR
IF
GR
BH
BR
TL
CS
IL
CL
MS
CT
AB
HD
TM
GJ
SB
VL
IS
NT
CJ
AR
GL
SV
BN
SJ
VS
BC
CV
AG
IS
BT
MM
SM
BV
AG
MH
OT
DJ
TR
GL
CV VN
PH
DB
VS
BC
HR
IF
BZ
IL
CL
GR
RBI & “Cuve” Network – business solutions
240 own locations
90 third parties
Coverage: 35 counties + Bucharest
Network:
MM
BH
SJ
CJ
AR
TM
SV
BN
HR
MS
AB
CS
GJ
MH
BV
SB
HD
DJ
VL
IS
NT
AG
OT
CV
DB
VN
BZ
PH
IF
TR
VS
BC
GR
343 locations
all counties
236 customers
High concentration
Medium concentration
Low coverage
BT
SM
Network:
Coverage:
Customers:
*COCO station – company
owned, company operated
GL
BR
TL
IL
CL
CT
TL
BR
**DODO station – dealer
owned, dealer operated
CT
Dyneff France and Spain
Other European retail activities
Rompetrol Bulgaria, Moldova and Georgia
Established in 2002, Rompetrol
Bulgaria operates at this time a
retail network of 60 gas-stations,
spread all over the country.
Focused on wholesale and retail
activities, Rompetrol Georgia
has in its portfolio 71 gasstations and a fuel storage
capacity of 9,500 cubic meters.
The third national fuel retailer,
Rompetrol Moldova focused in
the last years on a fast network
expansion, reaching 47 stations.
General Presentation of Trading
• Trading BU is in charge with optimizing the entire
distribution chain (from raw materials supply, to
sale of the final products) of The Rompetrol Group;
• Operations that span from the Caspian Sea to the
Mediterranean
• Fuel depots with a total storage capacity of 1.3
million cubic meters (France, Spain, Romania,
Bulgaria, Georgia and Ukraine)
• Trading managed to reach a net result of 12
million USD in 2012
Division of the Trading Business Unit
KazMunayGas Trading AG
Midia Marine Terminal
• The trading division, has completed the integration of all
crude marketing operations within KazMunayGas
In Romania, the Group has already invested about 350
million USD for the development of logistic infrastructure. It
consists of building a marine terminal with a capacity of 24
million tons / year, extending Berth 9 with 3 terminals for
tripling the amount of finished products, dredging the 5
Berths (Berth 9 and Berths 1-4), allowing mooring of ships
with greater capacity, and construction of a terminal for
liquefied petroleum gas (LPG), all assets in Midia Port.
• This approach supports the shareholder’s strategy,
KMG, to unify all its abroad assets around Rompetrol
Group.
• The company aims to become the sole national operator
for the export trade of crude oil produced by Kazakhstan.
The Rompetrol Group:
Upstream and Industrial Services
Upstream
Rompetrol has over 35 years of experience in
many traditional markets including the Middle
East and Caspian Sea regions and focuses on
exploration and production, well services, drilling
and workover in Romania, Kazakhstan, Russia,
Middle East and North Africa.
In Romania, the company has five exploration
block Focsani, Satu Mare, Zegujani, Gresu and
Nereju.
Upstream units in The Rompetrol Group:
• Exploration & Production division (included in
Rompetrol SA)
• Drilling & work over division (included in
Rompetrol SA)
• Rompetrol Well Services Company
• Rompetrol Well Services – Kazakhstan
Branch
• Libyan branch of Rompetrol SA
• Rompetrol SA branch in Iraq
• Benon Rompetrol SA JV
Industrial Services
Rominserv: The general contractor of the Group,
integrates industrial maintenance services, project
management, technical and technological
development services;
Rominserv Valves Iaifo: The biggest Romanian
manufacturer of a wide range of industrial cast iron,
steel fittings and safety valves.
Palplast: Manufacturer of high-density polyethylene
pipes and fittings with a wide range of applications,
as well as sprinkler and drip irrigation systems.
Rompetrol Quality Control: has 6 modern
laboratories that offer specialized quality and
environmental testing services.
Ecomaster: integrated provider of industrial
ecological services; with over 12 years experience
on the local market, the company has accumulated
the expertise that make it one of the innovators in
the field.
Going Forward:
our Vision, our Plan, our Partnership
Going Forward
Our Vision, our Plan, our Partnership
Consolidate KMG trading activities
 KMG has a unique opportunity to expand in the Black
Sea markets, for:
Strategic positioning close to consumers in the
refinery’s natural markets
Synergic effects on increased vertical integration for
improved financial performance
 TRG expansion strategy is capitalizing on:
Strategic location of Petromidia at Black Sea for easy
access to those markets
TRG blended experience in both developed (France)
and growing (Romania) markets
 Multi-layer approach, structured on :
Developing a strong wholesale distribution network for
faster and lower cost expansion
Building high efficiency retail networks to secure long
term access to consumers
Rompetrol will intensify the exploration and production
activities on the blocked owned in concession in
Romania, and expand the well services in Libya and
Kazakhstan. Diversify the service range through
technological development and strategic alliances and
expand in other countries.
Refinery Investments for continuous operation
improvements at high European standards and energy
efficiency for optimum refinery performance.
A strong, long term partnership between Romania and Kazakhstan is
essential to leverage the role of both countries in creating the
energetic bridge.
Rompetrol is the key asset in realizing this partnership.
Thank you!