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KMG International
Company type	Stock Company
Traded as	BSE: RRC BSE: PTR LSE: 0JK8 LSE: 0IZW
Industry	Oil and gas
Founded	1974
Headquarters	Bucharest, Romania (corporate headquarters); Amsterdam, Netherlands (registered office)
Key people	Zhanat Tussupbekov (Chief Executive Officer) Azamat Zhangulov (Senior Vice President) Catalin Dumitru (Vice President)
Products	Fuels (Efix, EfixS), LPG Oils, Additives and Auto cosmetics, Lubricants, Services (Fill&Go, Hei), Filling stations (Rompetrol, Rompetrol Express, Rompetrol Partner, Dyneff)
Revenue	US$ 13.6 billion (2014)
Number of employees	7,500 (2015)
Parent	KazMunayGas
Website	www.rompetrol.com www.kmginternational.com

KMG International[edit]

KMG International N.V. (formerly known as The Rompetrol Group N.V.) is an international oil company with operations in 15 countries throughout Europe, Central Asia and North Africa. The group is active primarily in refining, marketing and trading, with additional operations in exploration and production, and other oil industry services such as drilling, EPCM, and transportation.

KMG International owns the largest and most modern refinery in Romania and the Black Sea region – Petromidia Navodari – which boasts a processing capacity of over five million tons per year.

The company’s retail network that operates under the “Rompetrol” brand incorporates over 1,100 fuel distribution points in Romania, Georgia, Bulgaria, Moldova, and under Dyneff brand in France and Spain.

As of 2010, the group is entirely owned by NC KazMunayGas JSC, the national petroleum company of the Republic of Kazakhstan, in turn controlled by the NWF Samruk Kazyna JSC.

The company employs over 7,500 people worldwide, of which around 6,000 in its „home market”, Romania.

New operating model[edit]

Starting 2014, KMG International implemented a new operating model, in accordance with the strategy to consolidate and develop the activities and operations of the group in Romania and South-Eastern Europe.

The reorganization of the activities is aimed at providing greater flexibility of the operations, with a significant impact in increasing the efficiency and the cost structure.

Divisions[edit]

Refining and Petrochemicals

Rompetrol Rafinare (Petromidia)
Rompetrol Rafinare (Vega)
Petrochemical Division

Rompetrol Rafinare is the division in charge of the group’s refining operations, centered mostly around Petromidia refinery, in Navodari, on the Black Sea coast. Rompetrol Rafinare operates the Petromidia Navodari and Vega Ploiesti refineries, along with the Petrochemical Division of the Group.

Rompetrol Rafinare (Petromidia)

Petromidia is the biggest refinery in Romania and one of the most efficient medium-sized refineries in South-Eastern Europe, accounting for more than 40% of the actual refining capacity of Romania. It has a Nelson complexity index of 10.5, following a large investment program of USD 380 million that began in 2006 and ended in 2012. Petromidia is the only one located by the Black Sea shore, supplied directly through the Midia Marine Terminal, located 8,6 km in Midia Port. Petromidia is also the first Romanian refinery to successfully align to European environmental regulations and fuel standards. Rompetrol Rafinare reached a historical record in 2014 in terms of the volume of processed feedstock, of over 5 million tons. Since its foundation, in 1979, Petromidia refinery has processed 100 million tons of feedstock. Historical records reached by the company in 2014 include the volume of diesel produced - 2.46 million tons, while Yields reached 48.8% for diesel and 85.7% for white products. The processing cost was lowered to 21.2 USD/ton, the lowest in the past 10 years. Rompetrol Rafinare exports reached over 2 billion USD in 2014 (1.7 billion USD in 2013,1.7 billion USD in 2012), ranking first among the country’s largest petroleum products exporters and second at national level. The company continued to be an important contributor to the Romanian state budget, paying over 1.8 billion USD by the end of the year, 28% more than in 2013 (1.4 billion USD). The overall value of investments in Petromidia platform reached 1.4 billion USD between 2007 (when the first 75% stake was acquired by KazMunayGas) and 2014.

Rompetrol Rafinare (Vega)

With 100 years experience in the field of crude oil refining, Vega Refinery is also operated by Rompetrol Rafinare, having evolved from a classical refinery to a producer and provider of special products and solutions: ecologic solvents, heating fuels, special purpose bitumen etc. Vega refinery processed over 300 thousand tons of feedstock in 2014, an increase by 28% compared to the previous year (over 240 thousand tons). Vega refinery is a producer and provider of special products and the only Romanian producer of naphtha and n-hexane in central and Eastern Europe.

The petrochemical Division

The Petrochemical Division of Rompetrol Rafinare is the only producer of polymers in Romania, polypropylene and polyethylene of low and high density. The quality and diversity of the products, the position of distribution/delivery routes, the technical assistance, made the Petrochemical Division of Rompetrol Rafinare a trustful partner in Romania and in the Black Sea region. The production capacity of the company exceeds 200,000 tons per year. It also operates a marine terminal for ethylene discharge and a cryogenic tank with a storage capacity of 10,000 tons. The integration of the petrochemical operations within Rompetrol Rafinare started at the beginning of 2014. The reason of integrating petrochemical activity within Rompetrol Rafinare was the optimization of the entire technological process and the concentration of all operations in a single company, simplifying the organizational structure.

Supply Chain Management and Trading

KMG Trading
Byron Shipping
Midia Marine Terminal
Rompetrol Turkey

KMG Trading AG (formerly Vector Energy) is specialized in crude supply and products sales within KMG International. KMG Trading AG is in charge of selling crude oil and oil products but also of developing the logistics required by KazMunayGas for its own needs and for the development of commercial operations and access to new markets. It also manages the product stocks in the refining and retail divisions and is in charge of streamlining the fuel sales operations to the Group’s subsidiaries (Bulgaria, Moldova, Georgia, Ukraine), as well as for the non-Group companies in the Black Sea region. In Romania, the trading activity is efficiently handled by Midia Marine Terminal and Byron Shipping.

Byron Shipping is a transport agency for maritime and river ships, undergoing its activity both in Midia and Constanta Ports and providing significant support for the trading activities of the Group for over 7 years.

Midia Marine Terminal secures the presence of NC KazMunayGas JSC and KazMunayGas International in the geographic arch that connects the Caspian Sea (Kazakhstan, Georgia) and the Black Sea (Ukraine, Moldova, Romania, Bulgaria). It operates the maritime terminal of the Group and also its berths no 1-4 (for oil transit) and no 9-9A, 9B and 9C (for products transit) in the Midia port. The off shore terminal is one of the most important projects for the development of the trading activity. Built in 2008, 8.6 km out in the Black Sea, the terminal has a capacity of 24 million tons/year and it receives vessels up to 160,000 tons deadweight. It is linked to the refinery tank farm with a storage capacity approximately 500,000 cubic meters. The main benefits consist in providing a shorter transit route of about 33 kilometers than through Constanta port, thus providing significant cost reductions.

Rompetrol Turkey is a subsidiary of KMG International established in 2011 with the goal of expanding operations into new markets with high potential. The activity of the subsidiary consists firstly in developing trading and wholesale operations.

Retail

Rompetrol Downstream (Romania)
Rompetrol Gas (Romania)
Rompetrol Moldova
Rompetrol Bulgaria
Rompetrol Georgia
Dyneff France & Spain

Retail is one of the KMG International core activities, adding value to the refining and trading activities. In Europe, the group’s distribution network consists of more than 1000 points of sale distributed across 6 countries, each operated by separate commercial entities: Romania (Rompetrol Downstream, Rompetrol Gas), Republic of Moldova (Rompetrol Moldova), Bulgaria (Rompetrol Bulgaria), Georgia (Rompetrol Georgia), France and Spain (Dyneff). The group increased its distribution chain from 54 to 1000 points in 6 countries over the past decade and rebranded existing stations to a new concept that sets a new quality for the Rompetrol brand.

Rompetrol Downstream (Romania)

The Romanian retail segment is handled by Rompetrol Downstream (gasoline and diesel) and Rompetrol Gas (LPG). In Romania, the company operates over 740 fuel distribution stations namely own filling stations, Rompetrol Partner stations, Expres mobile stations and 9 and 20 m³ Fill&Go Fixed Units. The company launched in 2013 a new concept of gas stations, characterized by changing components of visual identity (Rompetrol logo), by a distinct ambient, which includes a modern architecture and a reorganization of the interior space, quality of materials and high-end details. In 2014 the company rebranded 90 stations and the process will be completed in 2015. Rompetrol Downstream has always developed specific products able to meet the proximity-related needs, therefore the local distribution infrastructure enlarged rapidly. It established partnerships with a series of independent filling stations all over the country developing Rompetrol Partner network. Due to the investment in retail visual identity branding and installations, these filling stations are now equipped with modern devices and pumps according to the group’s standards, and only deliver fuel produced by the Petromidia Refinery. To cover rural areas, the company started to install Expres mobile stations and then developed the Fill&Go Fixed Unit concept, tanks of 9 cm and 20 cm installed on the premises of car-fleet owning companies. As for the services, Rompetrol Downstream launched Fill&Go, the first on-site identification card, with monthly payment, offered exclusively by KMG International. Rompetrol Downstream also coordinates the activity of 7 warehouses located strategically in Arad, Craiova, Mogoşoaia, Şimleul Silvaniei, Vatra Dornei, Onesti and Zărneşti, ensuring the fuel distribution flow nationwide. Today, the Group’s local and European consolidation and development strategy is supported by the exclusive production of Euro 5 fuels in the Petromidia Refinery, together with the fuel distribution logistic facilities.

Rompetrol Gas (Romania)

Rompetrol Gas operates 230 LPG stations, 9,000 gas cylinder distribution stations and 3 LPG stations in Constanţa, Arad and Bacău, total capacity of 60,000 tons of LPG per year.

Rompetrol Moldova

Rompetrol Moldova is the retail subsidiary of KMG International on the local market of Moldova. Established in 2002, the company has developed in the early years only wholesale operations, and in 2006 began developing the retail segment. Currently, Rompetrol Moldova operates a network of 69 filling stations and a fuel depot located in Chisinau. All fuels sold in the network stations are imported exclusively from Petromidia, this strategy being applied across the entire network of Rompetrol Moldova. In addition to these distribution stations, the company also owns four dedicated LPG filling stations in the north of Moldova, with the warehouse located in Târnova. In 2012, Rompetrol Moldova became the first local oil company to implement an integrated management system. The certificates were obtained for compliance to international standards ISO 9001:2008 (quality management), ISO 14001:2009 (environmental management) and OHSAS 18001:2007 (health management and operational security).

Rompetrol Bulgaria

Rompetrol Bulgaria EAD was established in December 2002 through a partnership between KMG International, as a majority shareholder, and local partners. In 2013, KMG International became the sole ownership of the company. Rompetrol Bulgaria EAD is specialized in the distribution of fuels and petroleum products through a current network of 63 fuel stations all over the country. The company sells European-standard quality fuels produced at Petromidia Refinery. The subsidiary operates a 5,800 cu.m. storage facility in Ruse, along the Danube, which employs the latest technologies in the field of oil product management and environmental protection. The rail, naval and road loading facilities of the terminal ensures smooth wholesale operations throughout the Bulgarian market.

Rompetrol Georgia

Rompetrol Georgia was established in 2005 and presently coordinates distribution activities of a 70 fuel-station network.The network includes Rompetrol stations and also rebranded stations, part of the franchise distribution system, started in 2009. Apart from the fuel network, the company carries out wholesale activities through the depot in Batumi port (23,500 cu.m.), as well as through Tbilisi depot which has been totally modernized, increasing the storage capacity from 6,500 to 9,550 tons.

Dyneff France & Spain

Dyneff, one of the leading independent fuel distributor in France, became a major subsidiary of KMG International, after its acquisition in 2006. Operating in both France and Spain, Dyneff sells more than 2.3 million m3 of petroleum products every year, through 3 distribution channels: filling stations (115 filling stations in Southern France and Northern Spain), a network of commercial agencies (10 agencies covering the South of France and North and East of Spain), and 2 wholesale agencies (Dyneff covers three quarters of France, as well as Northern and Eastern Spain). Dyneff offers a full choice of motor fuels, biofuels, heating fuels, supplementary products and services that fulfill all the market requirements. Dyneff is a major trader in the French and Spanish markets, operating significant capacities of import, storage and distribution in ports such as Barcelona, Valencia, Bilbao, Bordeaux and Le Havre. Dyneff’s full storage capacity is up to 375,000 m3 and includes owned, rented and joint-venture oil terminals.

Upstream

Rompetrol S.A.
Rompetrol Well Services

Rompetrol S.A. coordinates drilling, well services and exploration and production operations of KMG International in Romania and abroad (Kazakhstan, Libya). Local exploration and production activities include several oil fields across Romania (five blocks: Focsani, Zegujani, Satu Mare, Gresu and Nereju).

Rompetrol Well Services (BSE: PTR) is one of the leading companies on this specific market segment in Romania, offering a wide range of services for oil and gas wells, including cementing, consolidation and sand control services, stimulations, testing, slick-line, and casing running operations. The company also operates in Eastern Europe and Central Asia. Moreover, it oversees all ongoing projects from its headquarters in Ploiesti, Romania, providing technical support to 13 locations in Romania, Kazakhstan and Bulgaria. The overseas activity was strongly influenced by the collaboration between the Kazakhstan branch of Rompetrol Well Services and KMG E&P for their upstream operations in the western Kazakh regions of Mangistau and Atyrau.

Industrial Services

Rominserv
Rompetrol Quality Control

Rominserv

Rominserv is the first Romanian company integrating industrial maintenance services, industrial project management, and technical & technology development services. Based on the experience on the Petromidia platform, Rominserv also offers consulting services to the three refineries in Kazakhstan. Moreover, in 2013, Rominserv signed an EPC contract for the reconstruction of one of the three refineries, Pavlodar petrochemical plant. The contract exceeds 1 bln. USD – the biggest contract the company ever signed outside Romania.

Rompetrol Quality Control

Laboratory Division of KMG International, Rompetrol Quality Control – RQC, is one of the top companies on the national market of laboratory analyses. Since its establishment in 2004, RQC granted an ongoing support to its customers (both KMG International companies and external customers) efforts in identifying and implementing the safest and effective ways in order to protect the environment and provide the high product quality.

KMG International brands[edit]

Retail Brands

Rompetrol
Dyneff

Rompetrol is the company’s main brand and one of the most well-known and reputed Romanian origin brands on international markets. Rompetrol brand values are associated with its long history of over 40 years, initially as the company representing the Romanian oil and gas industry on international level, developing later in a complex oil company with operations in 15 countries. Although the name of The Rompetrol Group was changed into KMG International in 2014, Rompetrol brand will continue to be used in the distribution segment, being a strong brand both locally and internationally.

Dyneff is a brand purchased by the company back in 2005 and used for distribution of retail services in France and Spain. On the French market, Dyneff also operates Rompetrol gas stations (10) located mainly on highways.

Fuel brands

Efix
EfixS

Efix is KMG International’s most advanced range of fuels that offers outstanding protection properties. The products were designed with an optimum combination of additives and active compounds assuring not only the cleaning of the valves and injectors, but also fuel consumption reduction and an increase in engine performance.

EfixS is the premium range of fuels, especially designed for drivers that want maximum performance for their cars, and, at the same time, optimal performance. Efix fuels have been tested in Germany at the Competence Center Fuels & Lubes Laboratory, validating again their outstanding properties. The Efix fuels are present in four countries: Romania, Bulgaria, Moldova and Georgia.

Service brands

Fill&Go
Hei

Fill&Go is a new innovative pay-at-pump brand of services. Fill&Go offers customers the possibility to buy fuels and other products from stations for their personal use or for the company they work for. At the moment, the service is offered to the subsidiaries in 4 countries: Romania, France, Georgia and Bulgaria.

Hei is the first restaurant concept to become available on the local gas station market. This innovative concept, which was launched on the Romanian market in 2009, offers customers a store format connected to modern trends, modern facilities, quality products and services, a multimedia system both at pump and on-location.

CSR activity[edit]

CSR is a strategic development direction, ensuring business success through active and continuous responsible actions taken within the workplace, market place, community and towards the environment. The group has taken a two-sided approach to its CSR efforts, focusing on both internal and external CSR activities.

Internal CSR

Work Health
Work Safety
Personnel Training
Personnel Policy
Quality Management

External CSR

Environment Preservation
CSR Programs and Partnerships

Environment Preservation

KMG International carries out environment protection measures in full conformity with the requirements of national and EU environment legislation. The commitments and measures adopted by the Group maintain and improve the environmental impact in the vicinity of Petromidia refinery, located nearby sensitive areas such as the Black Sea, Sutghiol Lake, the Danube Delta Biosphere Reservation, as well as the cities of Navodari, Constanta and Corbu village. One of the environmental projects of Rompetrol Rafinare which aims at preserving the Danube Delta Biosphere consisted in the rehabilitation of the drainage system to protect groundwater, Siutghiol Lake and the Black Sea. Since 2008, KMG International has been a member of CONCAWE (Conservation of Clean Air and Water in Europe), an organization founded in 1963, that researches multiple aspects of environmental protection in the oil industry. Once affiliated to CONCAWE, all of the Group’s member-companies benefit from assistance in order to help them comply with the European REACH Regulation (Registration, Evaluation, Authorization and Restriction of Chemicals). All companies, members of KMG International, maintained their Germanischer Lloyd certifications for their integrated management systems (ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007).

CSR Programs and Partnerships

"Impreuna pentru Fiecare" national program
SMURD
Ovidiu Ro Association
George Enescu International Festival and Contest
Civil Society Gala

"Impreuna pentru Fiecare" national program

To provide support and financial aid to socially vulnerable sectors, KMG International gathered its initiatives within the CSR platform "Energy comes from the heart" (launched in May 2009) - which includes a national program, "Together for each and everyone", and other separate programs in the supported fields of healthcare and environment protection. Through the national program, “Together for each and everyone”, the company has been offering financial support since 2009, in amount of more than USD 1,500,000 to 101 communities from Romania and the Republic of Moldova in order to improve healthcare or environment conditions at a local level. As a socially responsible company, KMG International is committed to supporting projects developed partnering various NGOs:

SMURD partnership & General Inspectorate of Aviation partnership since 2010 to support air emergency interventions, the transportation of both medical personnel and the victims.

Ovidiu Ro Association partnership, as of 2005, to support the national campaign “Fiecare Copil in Gradinita" (Each Child in Kindergarten).

George Enescu International Festival In the past 5 years the Group supported and will continue to support the prestigious George Enescu International Festival and Contest, held in several cities, in September. This association of Rompetrol with such a large scale event was meant to strengthen the international vocation of the two brands and its products - fuels and quality music.

Civil Society Gala - as of 2003, Rompetrol is a partner and main sponsor of the annual competition that awards the best projects of the year, initiated by NGOs, unions, individuals etc.

History[edit]

1974 – Rompetrol is established as the international operator of the Romanian oil industry.

1993 – Privatized by Management and Employee Buy Out (MEBO) and turnover subsequently reduced to below $6 million by 1998.
1998 – Control purchased by a local investor group, thus increasing company capital and contributing into a substantial turnover growth.
1999 – Holding company established as The Rompetrol Group N.V.(‘TRG’) in the Netherlands. First major acquisition: Vega refinery - located in Ploieşti - is bought and doubles its revenues in the first nine months after takeover.
2000 – Rompetrol takes over Petros - at that time Romania’s principal oilfield operator. The company has since been renamed Rompetrol Well Services. The Group’s largest acquisition, Petromidia S.A., is also Romania’s largest and most sophisticated oil refinery. Rompetrol committed itself to a sustained modernization process to make Petromidia a state-of-the-art facility in Eastern and Central Europe.
2001 – Rompetrol creates Rominserv S.A., Romania’s first Engineering Procurement Construction & Maintenance (EPCM) company focusing on the oil industry.
2002 – In 2002, with the newly founded company Rompetrol Petrochemicals in charge, the Petromedia refinery resumed its petrochemicals production.
2002 – Rompetrol opens subsidiaries in neighboring Moldova (Rompetrol Moldova) and Bulgaria (Rompetrol Bulgaria).
2003 – Rompetrol implemented its comprehensive program of expanding its gas station network in Romania. As part of its strategy the company unified the quality standards for its entire gas station network. To expand its network and make the process of distributing fuel easier, Rompetrol created a network of oil depots in various regions of the country (Arad, Craiova, Șimleu Silvaniei, Zarnesti, Vatra-Dornei, Constanta, Mogosoaia).
2004 – Rompetrol Rafinare S.A. is listed on Bucharest Stock Exchange (BVB).
2004 – KazMunayGas Trading AG (previously Vector Energy AG), specializing in the trade of oil and petroleum products.
2005 – Most significant Q1 results ever with net profit reaching $43 million. Rompetrol starts operations Georgia.
2005 – The Rompetrol Group N.V. announced the acquisition of 100% in the French company Dyneff S.A.
2006 – Rompetrol opens a subsidiary in Ukraine - Rompetrol Ukraine.
2007 – In August 2007, the Kazakh company KazMunayGas acquired 75% of the Rompetrol shares from Rompetrol Holding Switzerland^[1]
2008 – Rompetrol and KazMunayGas launched Media Marine Terminal for crude oil in Media Black Sea port.
2009 – KazMunayGas takes over the remaining 25% stake in Rompetrol.
2009 – In August 2009, Rompetrol opens its first two fuel stations, on the A2 motorway in Romania, designed as the new premium brand of the group^[2]
2010 - 2011 – TRG Petrol A.S., the group’s branch was established in Turkey with a view to expand the operations and enter new highly prospective markets.
2012 – Completion of Petromidia refinery modernization process following an investment of USD 380 million.
2013 – New filling station concept launch. The new filling station concept comprises a modern design that combines 3D elements with color schemes to create a minimalistic, aerial and warm concept.
2014 – The Board of Directors passed a resolution whereby the group was renamed into KMG International N.V