Rompetrol expands into Ukraine

The Rompetrol Group N.V. (TRG) announced today the opening of Rompetrol Ukraine, a new subsidiary that will initially carry out wholesale trading and will grow to operate about 200 gas stations within two years. Rompetrol Ukraine will supply fuel to Ukrainian gas station networks from Rompetrol Rafinare, TRG’s main refining unit in Romania.

“The Ukrainian market needs quality products, such as the ones produced by Rompetrol Rafinare, and this year’s chief goal is to develop here a gas station network, via franchising and by way of building new stations. Ukraine has seven refineries, but only four are operational, and their output is below capacity. On the other hand, car fleets are undergoing continual change, and new cars require quality Euro 3 and Euro 4 grade fuels. Rompetrol is needed on this market,” said Eric Kish, TRG Vice President for regional development and expansion.

The CEO of Rompetrol Ukraine is Laurenţiu Argeşanu, former operations manager of Rompetrol Downstream since 2003. Argeşanu will initially coordinate development projects in Southern Ukraine, and then expand to a national level focusing on large cities in the North of the country. In 2001, Argeşanu contributed to the opening of the first Rompetrol station in Romania, and was then involved in the restructuring of the TRG gas station networks.

He was also part of the team that implemented the “Fill&Go” fleet management system and participated in the initiation and execution of the “Hei” new gas station shop project.

“One of Rompetrol’s competitive advantages is the strategic position of Rompetrol Rafinare, which is the closest refinery to the Ukrainian Black Sea coast, being just 500 km away. The absence of well-established companies on the Ukrainian market translates into a good opportunity for Rompetrol to establish a base, capture market share and achieve commercial success, as we have done in other markets where we entered at the right time,” said Argesanu.

Rompetrol Ukraine will operate in a market with sizeable consumption potential and a population of 47.3 million. While some regional competitors hold distribution networks ranging from 30 to 90 gas stations, no company holds a dominant market share.