Mercuria’s Investment Proves Romania is Next Big Thing

Switzerland’s Mercuria Energy Group has completed a $50 million investment in Amromco Energy, the largest upstream gas producer in Romania. 

“The investment from Mercuria will enable Amromco to accelerate growth, through increasing production from existing assets and the acquisition of additional opportunities in Europe”, Amromco CEO Ron Carpenter commented in a note. 

According to the Romanian company, the equity will be used to accelerate growth in the country and across Eastern Europe.

“The agreement also places the company in a good position to execute on additional strength to its proven operational track record and ability to offer mutual beneficial marketing and off-take arrangements”, Carpenter said.

Amromco recently acquired three oil fields in Northeast Romania from Petrom, a subsidiary of OMV and the largest oil and gas producer in Eastern Europe. Partners include also RomGaz, a state-owned company.

‘As part of the agreement, Amromco and Mercuria will also establish a marketing joint venture for commodities in Romania, providing additional gas marketing opportunities’, reads the press release.

ROMANIA: THE NEXT BIG THING

 “Mercuria is delighted to partner with Amromco and First Reserve in this investment. We believe Romani is poised to become a significant energy hub in the region and Amromco is uniquely positioned to become one of the relevant participants in the ongoing gas market liberalization”, Shameek Konar, Chief Investment Officer of Mercuria, stated. 

Mercuria Energy Group’s investment in Romania proves how traders are looking to benefit from the country’s emergence as a natural gas exporter in a less-regulated Eastern European market. 

According to analysts, the ongoing liberalization creates significant opportunities within the Eastern bloc energy.