Petrom invests in Romanian wind power

ROMANIA - Romanian oil and gas group Petrom is buying a planned wind power project, seeking to tap the potential of renewable energy to insulate against the inefficiency of its existing refineries.

Petrom, Romanias largest listed company and majority owned by Austrias OMV, is buying 100 percent of Wind Power Park SRL, which owns a fullypermitted 45 megawatt capacity wind power project near the Black Sea, it said.

Petrom would invest a total 100 million euros US $136.4 million for both the purchase and development of the project, to be equipped with turbines from Vestas Wind Systems, for which acquisition contracts are already in place.

Investors welcomed Petroms increased focus on electricity generation — it is also building a 860 megawatt gasfired plant in the southern town of Brazi — and shares gained 2.9 percent to 0.36 lei by 0749 GMT.

Overall I think the strategy is a good one to move away from only oil and gas and toward electricity, especially as the gas prices in Romania are regulated, said Erste analyst Thomas Unger.

The group would have more funds at its disposal from a scheduled capital hike, if it is approved by shareholders meeting on April 29.

We do expect to see some more acquisitions, but in which direction the funds will be allocated is hard to say at this point, Unger said.

The Romanian groups chief executive, Mariana Gheorghe, told Reuters last month it could consider investing in wind energy, though she ruled out major acquisitions.

Our strategy for electricity envisages the development of a balanced projects portfolio, from both conventional sources, such as gas, but also from renewable sources, executive board member Gerald Kappes said in a statement.