CONPET plays a crucial role in the Romanian economy by transporting oil and related products by railway tanker and over some 3,800 km of pipelines it operates throughout the country. General Manager Liviu Ilasi points out, “Romania’s three major energy transporters are Transelectrica for electricity, Transgaz for natural gas, and CONPET, which transports all Romania’s domestic and imported crude oil, rich gas, ethane and condensate.” In 2016, CONPET will celebrate 115 years of transporting oil by pipeline in Romania and 25 years as an independent enterprise.
Although it is a state-owned company with a monopoly position, CONPET operates as competitively as a private enterprise and has proved it can meet the needs of its demanding private-sector clientele, which includes OMV Petrom, Lukoil and Rompetrol-Midia. Staffed by highly skilled professionals, most of them graduates of Romania’s University of Oil and Gas, CONPET is a top performer for its shareholders. It has been listed as a first-tier company on the Bucharest Stock Exchange (BSE) since 2013 and has attracted strong investor interest. CONPET had a very good year in 2014 and Liviu Ilasi anticipates continued strong growth.
Ambitious regional expansion plans
One of CONPET’s goals is to link up Romania’s oil-pipeline network with those of neighbouring countries, particularly Serbia, which has several refineries CONPET could supply. CONPET is currently exploring a project with Serbia’s Transnafta to build an oil pipeline between Pitesti and Pancevo. Implementing new transport links to Constanta Port, site of Europe’s biggest oil terminal, is another priority for CONPET.
CONPET already has the right fundamentals in place to position itself as a regional energy leader. Liviu Ilasi points out, “CONPET has a strong track record, extensive experience over many years of successful operations, the financial resources to tackle major projects, and a dominant market position, since CONPET is the biggest company of its kind in Eastern and Southeastern Europe. Romania’s strategic location is another plus.”
To achieve its ambitious growth plans, CONPET aims to continue to derive funding from the BSE as well as from other sources. As Liviu Ilasi explains, “CONPET’s successful transition from the secondary Rasdaq market to the BSE demonstrated the company’s strengths, including its sound management, transparency and commitment to creating shareholder value.”
CONPET welcomes new investment. Liviu Ilasi concludes, “CONPET’s projects are grounded in the realities of the moment. The value of CONPET shares on the BSE have evolved very positively, and CONPET will continue to generate secure returns for our investors.”