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OMV Petrom S.A.

(BVB:SNP) is a Romanian oilcompany, the largest corporation in Romania and the largest gas and oil producer in Eastern Europe. It is a subsidiary of OMV. History In late 2004, Petrom was privatized by the Romanian state and sold to Austrian oil company OMV. As of 2005, it was the largest privatization deal in Romania's history. Until 2005, Petrom owned six offshore drilling platforms, of which five, GSP Atlas, GSP Jupiter, GSP Orizont, GSP Prometeu and GSP Saturn were sold to Grup Servicii Petroliere for US$100 million. In January 2006, Petrom purchased OMV's operations in Romania, Bulgariaand Serbia and Montenegro. As a result of the transaction, 178 OMV stations were transferred to Petrom, but continued to operate under the OMV brand

Typical Petrom gas station in Iai, Romania From 1 January 2010, the company changed its name to OMV Petrom. In April 2010, Petrom expanded the portfolio of its projects, in terms of electricity production, through the acquisition of 100% of the SC Wind Power Park SRL, a developer of the Dorobanu Wind Farm. On May 18, 2010, Petrom announced the conclusion of an offshore campaign in the Lebada Est and Lebada Vest fields, located at the Histria block in the Black Sea. Following this offshore campaign, additional production of more than 300,000 boe was expected in 2010, from two existing wells (LO2 and LO4) and a new well drilled (LV05). On June 1, 2010, Petrom announced the start-up of the Hurezani gas delivery system, a project intended to optimize gas delivery into the national transportation network in periods when pressure in the system was very high. On July 12, 2010, Petrom announced the signing of a 15-year production enhancement contract for several fields in the area of Ticleni, Southwest Romania, with Petrofac, a leading international provider of facilities solutions to the oil and gas production and processing industry. Petrofac will perform services in the respective fields in order to maximize production while improving operational efficiency. The partnership targets cumulative production enhancement out of nine onshore fields in the Ticleni area by at least 50% in the next five years. On September 6, 2010, Petrom announced the sale of the 74.9% stake in Ring Oil (Russia) to its minority partner Mineral and Bio Oil Fuels Limited (MBO). From October 1, 2010, Petrom has completed the consolidation of marketing activities in Romania in a single entity, OMV Petrom Marketing SRL.

PetromCity, located in northernBucharest, serves as the company headquarters On December 2, 2010, Petrom inaugurated Petrom City, the headquarters that hosts the company's central operations. Situated in the northern part of Bucharest, it will be used by around 2,500 employees from 7 headquarters of the company in Bucharest and Ploiesti. The employee relocation process started in the fourth quarter of 2010 and was estimated to be finalized in the first half of 2011. In 2010, Petrom inaugurated the Hurezani gas delivery system, designed to optimize gas supply to the national transport network. The system included a new compressor station at Bulbuceni, and 11.5 kilometres (7.1 mi) of new pipe station. There was a new measurement system of the gas delivery point Hurezani, to adapt to changing parameters of the gas flow and pressure. The total investment budgeted amounted to about 135 million euros.[citation
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Operations Apart from its operations in Romania, the company operates in Bulgaria,Serbia, Hungary, Moldova, Kazakhstan, Iran and Russia. In Moldova, Petrom has operated 73 filling stations, being one of the leading oil companies, alongside Lukoil. In Hungary, there have been at least 2 Petrom filling stations. Petrom has operated in several countries:

Romania - largest company; Moldova - 2nd largest company, 31% market share; Bulgaria - 3rd largest company, 18% market share; Serbia and Montenegro - 3rd largest company, 13% market share.

In 2007 the company produced 5.5 billion cubic metres (190 billion cubic feet) of natural gas and 191,000 barrels per day (30,400 m3/d) of crude oil. Privatization controversy The Petrom privatization was realized during the last months of the Adrian Nstase government. In December 2004, OMV obtained a 51% stake in SNP Petrom SA. Major Romanian newspapers published articles criticising the privatization of Petrom, on the grounds that last-minute unadvertised moves gave Petrom all of Romania's oil and gas reserves just before the privatization contract was signed. It was claimed that this move gave away the control of the country's national resources . As a consequence, Petrom has a de facto monopoly on the oil production of Romania. Moreover, the state did not impose price controlling clauses in the privatization contract, so that Romanian-produced petroleum is sold in Romania at the same price as imported petroleum. Petrom Cross Petrom organized in 2008, 2009 and 2010 the Petrom Cross, an event in which the company builds a bike-trail metre (3.3 ft) for each participant. Nearly 4,200 feet (1,280 m) of new bike trails have been achieved from the 2009 and 2008 editions.