The investment will put Amromco in a better position to profit from the deregulation of the country’s gas market.
The equity will be used to accelerate Amromco’s growth in Romania and across Eastern Europe by expanding on existing partnerships and strengthening its position in the region and will also provide additional funding for the development of its 30 oil and gas concessions across Romania.
As part of the agreement, Amromco and Mercuria will also establish a marketing joint venture for commodities in Romania.
US private equity firm First Reserve, which has held Amromco since 2011, will remain Amromco’s majority shareholder.
‘We believe Romania is poised to become a significant energy hub in the region and Amromco is uniquely positioned to become one of the relevant participants in the ongoing gas market liberalization,’’ said Shameek Konar, chief investment officer of Mercuria.
Romania’s natural gas market will be completely liberalized for industrial consumers by October 2014 and by October 2018 for household consumers.
Amromco contributed 2.15% of Romania’s gas production in 2012, according to the energy market regulator ANRE. State-run Romgaz accounted for 51% of the total production, while OMV Petrom contributed 46.6%.
Amromco posted EUR17 million revenue and EUR15 million loss last year.
Mercuria posted $98 billion revenue in 2012.
(English version by Loredana Fratila-Cristescu)