“The Chinese have the financial capacity while the Kazakhs have the operational experience, the trading experience and the resources. It’s a good thing.”
Sturza is regarded as the key man behind the deal in 2007 when Dinu Patriciu decided to sell 75% in Rompetrol to KazMunayGas.
Early this week, however, the Kazakh group, which is facing cash flow problems due to the oil price slump, signed an agreement with CEFC China Energy Company Limited to transfer control of KMG International (the former Rompetrol) over to the Chinese company.
KMG International, an entity registered in the Netherlands holds the Petromidia refinery and the 734 filling stations of Rompetrol in Romania.
“In 2007 we needed new capital for the refinery and they (the Kazakhs i.e.) came up with the money. To Rompetrol this is a good combination because it funds a new growth phase. The refinery needs the money,” Ion Sturza says.
“It’s an exceptionally well positioned asset and downstream (refining and marketing i.e.) is where the action is now. The Chinese do a more thorough due-diligence than the CIA. For the Chinese, to the Kazakhs and the government, what is happening now is a business opportunity,” he added.