The company filed its suit with the European Court of Human Rights following a court battle against brothers Dan and Radu Stegaroiu of Cluj county, who demanded the return of a property in Boldesti, Prahova county, according to the sale prospectus for a 9.84% stake in OMV Petrom, owned by the Economy Ministry.
The suit was brought on by the two brothers before Petrom was privatized, in 2004, arguing that the property in question was nationalized illegally. In 2008, an appellate court forced OMV Petrom to pay the brothers 51 million lei (equal to EUR13.8 million at the time) in compensation. The company contested the decision, but its move was rejected.
In May last year, the Stegaroiu brothers requested OMV Petrom’s insolvency, but two successive court rulings rejected their request.
OMV Petrom launched a new suit, to determine whether the obligation is the company’s or the state’s. The appellate court’s ruling was amended. OMV Petrom requested “reparatory measures” in the amount of RON51 million, which should be paid by the state, but this decision may be challenged, according to the prospectus.
The company filed the restitution request with the National Property Restitution Agency, which initially refused to accept it. In June, a court forced the Agency to accept the request, but this decision may also be contested.
Apart from this dispute, OMV Petrom is also a party in 28,000 cases against former and current employees, regarding varying interpretations of the collective work contract, says the prospectus.
OMV Petrom, together with the Regional Environment Protection Agency and Environment Ministry, has been sued by several companies, which demand the annulment of the sale-purchase contracts for certain plots of land in Straulesti, Bucharest (the location of the company’s headquarters), over violations of environment rules.
The total value of the contested contracts if EUR55.4 million, of which the plaintiffs have paid EUR9.03 million, says the prospectus. The first hearing is scheduled for November 2011.
In another case, regarding the sale and purchase of oil and lubricants, the Astra Romana refinery has requested EUR114 million in compensation from OMV Petrom, due for October 2004 – 31 December 2010.
An OMV Petrom branch in Kazakhstan, Korned LLP, was sued by Shakharmunaigas JSC, which demanded EUR16 million in damages for the overdue payment of fuel exploitation and production rights.
OMV Petrom was also taken to court over the illegal use of intellectual property, with the plaintiffs demanding EUR100 million in damages.
Romania’s National Customs Authority has seized oil products worth RON21 million from OMV Petrom, after it found problems with their transport between tax warehouses. The company challenged this decision and the case is pending.
Austrian group OMV owns 51.01% of OMV Petrom’s shares. Romania owns 20.63% through the Economy Ministry and Fondul Proprietatea owns 20.11%. The sale will bring the ministry’s participation to 10.79%.
OMV Petrom’s profit last year was EUR520.2 million.