Thursday, September 8, 2011

Romania’s Government Approves License Extension for OMV Petrom

Romania’s government approved a three-year extension of OMV Petrom SA (SNP)’s exploration licenses in the country, government spokeswoman Ioana Muntean said.

The country’s biggest oil company gave up about 30 percent of the initially contracted permits for the oil and gas blocks it plans to explore, Muntean said in a phone interview today.

The Romanian licenses, which OMV AG (OMV), central Europe biggest oil company, holds via Petrom, are due to expire on Sept. 12 and were granted to Petrom before it was sold to OMV in 2004.

A failure to renew the licenses or a renewal delay would have “a material adverse effect on Petrom’s business, results of operations and its financial condition,” OMV said in May in the prospectus of a planned share sale.

To contact the reporter on this story: Andra Timu in Bucharest at atimu@bloomberg.net.

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net

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