The additional state guarantees to be provided by the Romanian government for Oltchim SA’s purchase of Arpechim Pitesti constitute state aid and their compatibility with the European single market must be evaluated, says PCC in a press release.
The shareholder also states that the purchase of an inefficient and non-operational refinery is contrary to Oltchim’s interests. PCC argues that high refining costs, the considerable distance to suppliers, run-down equipment and low demand for its products were the main reasons behind OMV Petrom’s decision to shut Arpechim down.
On September 9, the Economy Ministry announced that authorities want to buy the Arpechim Pitesti refinery from OMV Petrom and the company is willing to start negotiations “as soon as possible.”
OMV Petrom announced in March that it would permanently shut down Arpechim, for lack of a “credible” buyer. The unit was to be transformed into a storage facility for crude oil and oil products. Following this announcement, the government started talks with the oil company, in view of restarting the refinery.