OMV has submitted a binding offer for the acquisition of a 51% stake in the Turkish refining company Turkiye Petrol Rafinerileri Anonim Sirketi (TUPRAS). TUPRAS, a pure refining company with a yearly refining capacity of 27.6 mn tons, would be a strategic fit for OMV as it would represent an enlargement of the company's core region within the growing market in Europe.

OMV is the leading, integrated oil and gas company in Central Europe, with a strong international E&P portfolio, and TUPRAS is the sole refiner in a fast growing economy. Both companies would profit from their refining expertise and would increase their strong supply positions in the growing Central European and Turkish markets.

The core of OMV's strategy is profitable growth and OMV has submitted a plan to the Turkish government that is in line with this strategy. Regarding the details of the offer, the parties have agreed to retain confidentiality. The Turkish government will provide updates on the progress of the privatization process.

Through the acquisition of 51% of the Romanian company Petrom, OMV has become the biggest oil and gas group in Central Europe, with oil and gas reserves of more than 1.4 bn boe, daily production of approximately 345,000 boe, and an annual refining capacity of 26.4 mn t. OMV has 2,457 filling stations in 13 countries and a market share of 18% in the Danube region.

TUPRAS operates 4 refineries with a total capacity of 27.6 mn t. Two of them are located close to the cost in Izmit and Izmir. The other two are smaller inland refineries. TUPRAS also has storage facilities of 4.7 mn m? for crude oil and other products. The 2004 net sales reached approximately EUR 6.3 bn and net profit amounted to around EUR 330 mn.

TUPRAS started its privatization process in 1991 when shares corresponding to 2.50% of TUPRAS's capital were offered to the public. By the end of 1999, approximately 3.58% of TUPRAS's shares were traded on the Istanbul Stock Exchange, with the remaining 96.42% held by the Privatization Administration. In April 2000, a secondary offering of TUPRAS shares was completed and the percentage of shares traded on the Istanbul and London Stock Exchanges reached 34.24%. On March 4, 2005, 14.76% of TUPRAS were sold to foreign investors. As a result, 49% of TUPRAS?s shares are publicly traded with the remainder being up for privatization.

"AK&M", 05/09/2005 13:50