Romania's government has approved the sell-off strategy aimed to turn the country's crude oil company SNP Petrom private in line with observing the country's pledges under financial agreements with western creditors, a cabinet statement said.

The Petrom sell-off strategy envisages the sale of a 33-34% share accompanied by an increase in share capital aimed to raise the newly main shareholders stake to 51%. The government said the approved strategy is the best option for Petrom, which badly needs investments to modernise mainly its crude oil refineries in line with the EU requirements.

Petrom will start its sell-off advertisement in local and international media immediately after the government decree on its privatisation strategy will be published in to country's Official Gazette.

Petrom is a vertically integrated oil company. Its annual crude oil output stands at some six million tons. It also has two crude refineries and operates some 600 filling stations across Romania. It opened a branch in Hungary and now eyes markets like Serbia and Republic of Moldova.

(NewsBase 04.viii.03)