KazMunayGas to sell 51% of Dyneff to Chinese energy company

China CEFC Energy Company has signed a purchase deal with Romanian oil giant KMG International (KMGI) to acquire 51% of European fuel retailer Dyneff.

KMGI, fully owned by Kazakhstan´s national oil and gas company KazMunayGas, will be maintaining 49% of the shares in Dyneff, which has a retailing network of approximately 115 gas stations spread across Southern France and Northern Spain, and represents KMGI´s only investment in Western Europe.

According to Adrian Balan-Doltu, industry expert of the Romanian fuel market, investments in emerging markets such as Romania are always celebrated as victories, but the sale of the majority of Dyneff comes as a surprise.

“Kaz Munay Gas considered Dyneff as very important in the context of Rompetrol’s acquisition (2007-2009), both because its location (France-Spain) and its consistent positive results. By all means, Dyneff has been seen all these years as the mother-of-pearl for Rompetrol,” explains Balan-Doltu.

Dyneff now represents the gateway into new Western European markets for CEFC Energy, as well as the first step in the new partnership between the two energy giants, CEFC and KazMunayGas.

This operation will provide Dyneff the financial support needed to embark on future developments, such as the diversification into the natural gas segment, according to KMGI. In July 2015 it received authorization as an official natural gas supplier in France.

CEFC Energy is a major Chinese private collective enterprise focused on energy and financial services which is expanding its international presence.

KMGI currently owns over 1,000 distributing points in Europe, with most of them operating under the Rompetrol brand in Romania, Republic of Moldova, Bulgaria, Georgia, and Ukraine. Dyneff became a major subsidiary of KMGI after its acquisition in 2005.