Rompetrol – Sterling Resources, a strictly commercial relationship

The Rompetrol Group considers that the speculations and innuendos regarding its involvement in the development/operation of Black Sea perimeters are exaggerated and are not based on any real facts, and reserves the right to demand that the culpable parties assume legal liability for any statements that could infringe its current activities, as well as its employees and shareholders.

“We are witnessing political manipulation, by the creation of conspiracy theories which target my disparagement and that of the activities / employees of The Rompetrol Group. I would like to mention that neither The Rompetrol Group, whose majority shareholder is KazMunaiGaz, nor myself, as CEO of the Group, have not had and do not have any connection with the perimeters in question. Many persons issue opinions about the situation of Black Sea perimeters, but very few people take into consideration the opinion of specialists in the field, who say that the numbers regarding the potential of the continental platform are exaggerated, and the exploration/operation costs are very high, tens or even hundreds of millions of dollars” declared Dinu Patriciu, CEO of The Rompetrol Group.

The attempt to find a connection between The Rompetrol Group and companies Sterling Resources/Midia Resources is exaggerated, taking into consideration that only commercial relations existed between them, for performing services for perimeters Craiova Sud and Midia. These contracts were performed only between May 2005 - June 2006 and October 2007 - June 2008, and not since 1995, as previously alleged.

For example, the contract with Midia Resources, completed in June 2008, represented approximately 1% of the turnover of company Rompetrol Well Services in 2008.

Regarding Mr. Nicolae Vidu’s situation, we would like to mention that he has 35 years worth of professional expertise in geology and exploration and in 2007 he was chosen as Director of Rompetrol Well Services, with 2 other persons. The position he occupied does not contravene current laws, and such situations occur both in Romania and abroad.

Out of respect for the company, but also in order to eliminate all the speculations regarding the connection between Rompetrol and Sterling Resources/Midia Resources, Nicolae Vidu has decided to resign from his position of Director of Rompetrol Well Services, a company listed at Bucharest Stock Exchange since 1998.
Rompetrol Well Services was incorporated in 1951 and since 2000 it is a member of The Rompetrol Group, and specializes in well services (cementing, consolidation and casing operations, stimulations, testing, instrumentations, well tubing operations, etc.) for crude oil and natural gas extraction. The company cements over 500 drilling pipes annually, at depths between 500 m and 4,500 m, and performs consolidation and casing operations for approximately 200 crude oil and natural gas shafts.

Rompetrol was incorporated in 1974, then privatized in 1993 by MEBO, and in 1998 the majority share package was taken over by Dinu Patriciu. After the privatization of the company in 1993, the representation of the interests of the Romanian State in the contracts of exploration and division of the production of crude oil / natural gas corresponding to the perimeters in Romania was taken over by the National Agency for Mineral Resources.

The Rompetrol Group has not expressed until now interest taking under license or setting up partnerships regarding the exploration/operation of Black Sea perimeters. In Romania, The Rompetrol Group owns in concession 5 exploration perimeters – Satu Mare, Zegujani, Greşu, Nereju and Focşani and a production perimeter at Goleşti.