Kazakh state-owned KazMunayGas acquired 75 percent of Romania's Rompetrol for $2.7 billion.

Rompetrol hopes to acquire access to energy resources that will boost independence from Russian raw material supplies.

"This transaction guarantees the rapid development of Rompetrol through access to Kazakhstan's resources," Dinu Patriciu, chairman and owner of the Rompetrol Group, told reporters.

Patriciu, whom the Romanian press now considers the wealthiest Romanian citizen after the transaction, said Europe fears the long-term security of Russian oil and gas imports, the Hungarian business newswire reported.

The two sides said in a statement KazMunayGas "doubles its refining capacity and gains access to 630 petrol stations held by Rompetrol across seven European countries from Georgia to France" through this transaction.

Romania's largest oil company Petrom, majority-owned by Austria's OMV, said that changes in the ownership structure of Rompetrol will not influence the Romanian market directly.

"Rompetrol is and will remain, most probably, a strong competitor in the downstream sector, an area both competitive and developing rapidly," a Petrom representative was quoted as saying.

Iran to begin new set of projects in south

Iran plans to begin new activities for developing the oil industry and implementing major projects in the south, the government said.

Mohammad Reza Nematzadeh, managing director of the National Oil Refining and Distribution Co., told reporters the government plans to increase capacity of Bandar Abbas to the Isfahan pipeline in this southern port city.

He said the company will construct two new refineries with total capacity of 660,000 barrels per day in Bandar Abbas.

"The crude oil treatment capacity of Bandar Abbas refinery will increase from 232,000 to 300,000 barrels per day and an oil dock is being designed to be constructed in the near future," he said.

According to the Asia Pulse, the Persian Gulf Star gas condensate refinery will process 360,000 barrels per day while the super heavy crude oil refinery will be capable of treating 300,000 barrels per day, Nematzadeh said.

Sinopec refinery on schedule

Sinopec, Asia’s largest oil refiner, said its new 200,000 barrels per day refinery in east China is still on target for completion in the first half of next year despite speculation over delays, according to local reports.

The company is holding talks with Saudi Aramco, which is expected to take a 25 percent stake, for a refinery in the coastal city of Qingdao.

Earlier this month industry experts said the project faced delays and was more than likely to be operational towards the end of next year.

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Closing oil prices, Aug. 31, 3 p.m. London

Brent crude oil: $72.38

West Texas Intermediate crude oil: $73.87

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(e-mail: energy@upi.com)