Competition Council approved Petrom to take over Petromservice activities

The Competition Council approved the takeover by Petrom of oil services activities from Petromservice, a transaction in amount of 328.5 million euros, considering the operation was not presenting "serious doubts" over the compatibility with the competition environment.

"The Competition Council finds the transaction, although falls under the incidence of Competition Law No.21/1996, republished, does not show serious doubts concerning its compatibility with a normal competition environment on Romanian territory. Consequently, the Romanian competition authority issued a decision of non-objection", reads a release of the Council.

Petrom took over activities carried out by Petromservice, such as derrick repairs, maintenance, drilling and transports, as well as contracts concluded with third parties connected to these services, the release also reads. The contract between the two companies was concluded on 18 September 2007. By this transaction, Petrom also took over about 9 800 Petromservice employees, and the integration of the oil services will lead to significant cuts of the production cost.

Following this operation, Petrom created a new department, of services for exploration and production, and the company will invest some 90 million euros in the coming years, in technologies, equipment, infrastructure and IT applications.

Petromservice was established in 2002, by externalising certain Petrom services. The company carries out oil service activities, as well in constructions, being controlled by the Petrom Employees Association.

At the end of 2004, Petrom was taken over by Austrian group OMV, through a combined transaction of acquiring shares from the state and capital increase, in a total amount of 1.5 billion euros.

In 2005, Petrom and Petromservice concluded a contract, valid until 2012, which established for the company controlled by OMV of a minimum set of works in amount of 180 million euros for 2006. According to the contract provisions, the minimum sum was to decrease by 10% every year, up to the contract finalisation.

Following the takeover of Petromservice activities by Petrom, the 2005 contract will end.

Curierul National