OMV Petrom, the largest oil and gas producer in Southeastern Europe, has sold its 99.99% interest in its non-core gas distribution company Petrom Distribuţie Gaze (PDG) to Ligatne (Ligatne, Cyprus). The parent company of Ligatne is also the majority owner of SC Gaz Sud SA (Gaz Sud) and SC Grup Dezvoltare Retele SA (GDR). The decision is in line with the OMV Petrom strategy of optimizing the downstream operations with a view of improving efficiency. The parties have agreed not to disclose the transaction value; the completion of transaction is subject to approval by the Competition Council.
PDG SRL was set up in 2007, when the Romanian legislation was modified to observe the EU Directive which specified the separation of gas distribution from other activities in order to guarantee market competition and transparency. At the end of 2012, the distribution network of PDG SRL measured approximately 1,000 km in length and served more than 21,000 clients, mainly located in the neighboring areas of Bucharest and Timişoara. Together Gaz Sud and GDR currently operate a gas distribution network measuring approximately 700 km in length and serving over 22,000 clients located primarily in the neighboring areas of Bucharest. Ligatne was selected following a selling process which started in June 2012. Both Gaz Sud and GDR have a strategic focus on the Romanian gas distribution market, especially within the greater Bucharest area.