Greece’s largest oil refiner, Hellenic Petroleum, signed an agreement on October 10 with the government of Montenegro to acquire 54.35 percent of crude oil importer and trader Jugopetrol Kotor for 65 million euros.
The Greek company outbid major rivals in the international tender to privatise the state-owned company, including Russian oil giant Lukoil and Austria’s OMV. Bids were also submitted by Croatia’s INA, Slovenia’s Istrabenz and Slovenian Petrol.
In addition to the cash component of its offer, Hellenic Petroleum will invest 35 million euros in the company, will spend 4 million euros on social programmes and will pay 1.5 million euros to the local government.
Part of the proceeds to be invested in the company will be used to improve its facilities, which currently include 170,000 cubic metres of storage facilities and a network of 56 petrol stations, of which 33 are owned by the company.
Jugopetrol sells 500,000 tonnes of petrol products per year. In 2001 it reported earnings of 200 million euros and after tax profits of 10.6 million euros. It also holds the rights for hydrocarbon exploration in Montenegro.
The acquisition is in line with Hellenic Petroleum’s goal to become a major player in the Balkans. It already owns a petroleum marketing company in Bulgaria and operates the OKTA oil refinery in FYROM. In Albania it operates a chain of petrol station chains and has concessions to explore and exploit hydrocarbons.
S.D.