ECONOMIC - PETROLEUM, ORGANIZATION POLITICAL - MINISTRIES, SOVIET CONTROL

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000600150175-1
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 11
• Document Creation Date: December 22, 2016
• Document Release Date: June 15, 2011
• Sequence Number: 175
• Publication Date: March 18, 1954
• Content Type: REPORT

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CENTRAL iNTELLlGENCE AGEIUCY
COUNTRY
SUBJECT
GC NG.
QATE ?iST.f~1+?ar 1~$~
N0. OF PhGES iz
SUPPLEMEtdT TO'
&eonomic - Petroleum, orgammiaatian
Political -Ministries, Soviet control
'REPpRT N0:
TFi!& 15 i)?~EVALU4TEi~? INFQRt+IATlQ4~"
ORGANIZATION OF TH,E RUMANIAN PxTROLE[lM INDUSTRY
After kheir antry into ~,umani4, the 8ovietr+ tank iameediate poasessioa of
B11 petroleum interests previously purchased by the Germane. These iarluded
Petrofina Belge (Helgaea 011 Company) purchased from the Belgians sad Omalum
des Petrolea (Petroleum Trading Company) acquired from the French. The 4o11ov-
ing are the enterprises bought by the Geaxsns during World Was II:
Name of Company
Cc~co,dis
Starnaphta
Colombia
?oraky Romaneac
Credit Minier
Prahova
Copacen~
Petroiul Ro~snasc
Former Ovness
Petrofina Belge
Crncordia
Omnium des ?etroles
Petrofina Helge
Romans-Cekoslovaque
Societe ItalSenne
Conccrdia
3nng11t b: Fo: sky .?,~uasnesc
cu-ssl~c~noN _ _ _ _ _ _ _
{TOTE NAM'.' -r Mf!1~ _ OISTAIw~l01J1 ~ ~~
~MI~ AM ill _ _ _ _ _ -
~,, ,F,n.~. y -
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S-E-G-R.-$-T
possession of the following refiner?~ea:
Petrolifera R
Redevtnta
Forage Lesaaine
IRDPpossibly ls~astria Romans
de Petrol, Rumsnian Petrol?um
Enterprise,
Yn addition to the oil coaepani.es mentioned above, the Soviets
Former ()~rnera
pica
klica
Petrof iae~ )}cl$e
Credit Mtiraier in Rrazi
Pe*.ro1 Blnck i,n Pioesti.
Redeventa (;dumanian
Company) in Ploeati
:Lnasmuch as These refineries were German holdings, 'che Sevlets claimed
them as aar booty and proceeded to incorporate then into Scvrompetrol (Soviet-
Ramsnian :'e~reJ..eum Enterprises). The remalring petroleum companies were
maned by the ?ollouing foreign interests:
Doicesti?-Targoviste
Venus (located ir, Aamnicui-Sarat)
Petrol
Sought by S*.andard. Oil
?ihese companies, several smaller companies, and all the refineries belong-
ing to both the mayor and minor companies were exploited "oy their foreign
cvnrrs until the Allied military mi,ss~.ons left Rumania. The nct~rly formed
government of the I1~msnian People?s R^pubiic then nationalized all 4;he petro-
le??mi companies ani set up the SR~P `Societatea Rcmana 3e Petrol, a1:me.nian Pe-
troleum Ccti:pany) vh:ch inc laded tkic tt7C ma3ar petrole~ regions, one in
Ministry of32dinesoandrPetroleumvana ,:ontro~lPle3 theifolllsringCr~~i"inerieso the
Ro~^.aro-ra~,ei-i csro
Sospiro
Astra-Rcx9ana
Steaua RoaaZs
;inirea
Dacia-Romans
Ro7uaao-Pelge des fetroles
- 2 -
S-S-C-R-B-M
50X1-HUM
,~
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6
Alame of Retiu~ry Location.
Rcsmano-America 'P'e1ea,~an
Antra-Rte Ploesti
....
Ploesti
~Inirea ate Orion
Steaua Rtn~i Carcpin~+.
Photog~?n Brasov (1'acue?Ta Gil wompany)
ISacia k~omana Ploesti
~ ymars, the S1?P a,x.'.ususted all its egcTipmenttreserves ana te5,as ~~~ awe-?--??o
_ _. --- -- ... to...nr+~ara it. Fv^nPfc
FJestern neatioae vim. t2:e U?:~t.
So~~ro~apetrol subsequently assumed complete control of ::he SR3', siting
the incompetence of the SlrP dixectors and the ~Yeairp "to simplify things" as
excuses Por this step. Thr. new company vas known as Trustul Petrolului (the
date of its organization ie unknown). Frew then on, Sovrompetroi Deeame dr,-
pendent directly cn the Coviats erld ccatr~lled g17. of Rumania's petroleum
TZ. GR(p,~$IZATI?$ AFTF~R 1948
A, Sovrom etr~l
1. The Influence of Sovrompetrol
After *.he Allied military mission departed, the organization of the
ant Petroleum; ~iauwer, actua], c^rtrr,1 rested with Sovrompet.ol. gxploraiion
was in the hands cf the Geological Cca?ittr_e.
Juvrvwpcoa ..~ _..
the following manner: Sovroxpetrol informs the Soviets of any action required
.at .,O MME{e4sT9 *!1
..
_
-
_
_
?i.:iQ L[Ie AO'11C ?,a y:a ..w.? ... ..,., _..- -__
perform ~.t. The Council of Ministers`jhen re+~y the order to the State Plan-
_ _ .,.,.e,,,. a,,,,,?r,"rnntrOl and the
_ -
n;III~T VGl[4111G~AVa.. a., ~..,..,_ ___- _r _
vcs~i:,us rtiaietries and organizations in Rumenla are controlled in the same
the
t
d
o
ers
ke.y. 3ovr~+etrol roports to the So*~iets, vho}forvard the or
__ ___ ~ .,,. l,..ri ?~ f~hnn SnPnsMQ tZ1E'
Petroleum recsive all their o;dera from the Council of Wiaiatera, which re-
_ __ .._____n--- ai,~ C..,.,s4a urn
controlling the petroleua industry iu Huruansa.
?,omomipetrol coa;~rals the Yatrolexpor*. organization in thr same
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Rumania's petroleum products are sent to the USSR, either ~',hrcugi: pipeline ',
fray Reheni or tPsrough the port of ~onatanta. A ataall quantity of petroleum
'is sold by Rumania outside the Iron Curtain and, from time to time, the
Soviets ths!mselvea also sell shiploads of Ruasanie.'e crude oil on the tdedi-;'
terra~re~en maar~set. The director of I'etralexport is i~einberg (fnu), a former;
chemist with Tkacia Romans. Sapira (fnu) is also on the management staff of,
Petrolexport.
Relations bet+aaxer~ Sovrompetrol and the Minister, of p?oreigzi Trade '?re
the same as tLose betaeer, Sovrc~petrol and Petrole~port. Relations with the
Stag Geological Committee, however, are sasrewhat diff gent. Since this tndy
is directly under the control. of the Council of A@inisters, Sovrorw'cpetrox rcuet
It is treataKi by th~z ~ovieta as being ~n the s~+e footing wi*.h all?ather 3ovie~,
The. min hea?~qudrte: a of Sovrorasetrol, whicki era loos*,e~ ir,
Buct-armst, ax~t umdar the` conts~al' of "a' Sovi?t dirmctpr'gaceraa.. Several 'sovieti
aaaiatnnt diraotore era aaciated Ly Rumanian gpaciai ate, ti,c latter grans cor.-
?leting of man appointafl wither bemuse of their technical kncvledge or be-
cause c* their politics. A1,7. orders pertaining to oil exploitation come from
the USSR, and the Rumanian engineers are employed only to insure execution of
these orders.
Rumania's oil fields nre g*.?ouped according tv regionr, snd f'o:?m regiune
gror~ps. Each regiune Errcup is headed by a Soviet director and several Soviet
assistant directors, and is staffed by Rummaninn engineers. The orders issued
to these directors come Directly from the L'SSR. Most of the Soviets employed
at Savr~pe:tsol 4D not kn?ov `he Rumanian language and therefore e~nQags in ver)
limited contact with the natives. All technical orders are given through in-
terpreters. Tlie Soviets employed at Sovrompetrol do not delve into politics
and are concerned only with their work.. They oftet ask the members of the
party in Rurmsnia t~ leave them nlene.
A a*csr .~_ T_+.c?sa^at '_ ?.~ er,g,reers act as interpreters for the Soviets
Many o.^ them served w..*.h the uI?[aer British, American, and Dutch oil cvmpanie:.
and nox emirs a very Privileged position as Soo:'e'_ interpreters.
At the beginning of its activities, Sovrorapotrol paid the Rumanian
government a tax equal to the a.-~o;:rt _?u r.;eriy paid by t're oil. companies to
their foreign owners. After departure of the Allied military mission, the
tar, paid by Sovrompetrol was iorrered, but i::s eeac ~ amount cannot row be
estimated. It is known, i~awever, that Sovrompetrol is importing goods from
the G5SR fur resale to the Rumanian government, and thst the money accruing
from these saps is deducted from the tax owed t?:e government.
B. Ministries of Mines and F'etroletun
Aach ministry is under the leadership of a r!inister and a deputy min-
ieter, both :~` whom are well-known Rur.~aniar_ Communists.
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Directorate of Minerals, each under the leadership of a director and as asslst-
an1: di
t
E
rec
or.
ach directorate has several departments xhic2x Heal with suet:
:~.atters ~as supplies and organization, and each depaa?tment is cxader the we~der-
s:'aip oi' a Rumanian eae~ineer who csr~s out the orders ci' the minister.
The entire aiczistcy is wader tree suxvelllance of s, creraonne'~ service
.
i'his bod_? operates unaler the direction: of a personnel c:.ief, wha works in con-
.}unct-,Lan with the central part~? organs and the State Security. He reports ai.l`
th
at transpires within the' ministry. Tp;e whole personnel machinery is
veritable .espionage system, a;.l the more ;,~ ',nee the personnel ciaief :was ~,1if~
" Each naa ~impioya=e ~:ntoring the ministry is hand-z~ieked by the per-
"able, he is ire^.edia?e~y 3ismissed. The employees a!readyVon the gab are?under.
`
close survei..lancz . anti each must a~.pear regularly before the pe:?;>onnel chief'
Rumaniar. Com.?nunists. (The per;.urne.. r.hief is always present at mee~iiags will:
members of other ministries, fcr ::;~;l.cr personnel service operates .in each
of the other minintries.) Mo:?r_o; cr , .:: i. cf tree -lore importsnt non-Communist
employees are assisted by ComWun':_,... .r: o are CraininU to replace +.:hem.
The idinistry of Petroleum is organized similari,y to the Nunistt;, of
I?Sines, i.e., with a Directorate of ?etroleum and s Directorate cf Methane Gas.
The personnel u* both miaistrie., was expanded as the ministries requisitioned
s~.arroundirig private buildings, ar.9 con~ert~:d t'aem into a.Pice buildir~~s. The
number of employrees is believe3 to have been almoRt tripled is ordci? to place
in all eche7.ors of each ministry those in _?avor with the party and those
employed as soles. The personnel service is a network of political espionage
spreading `n:?ou,-i~ c_1 the ente:?p__;es, factories, and mines, irrespective o:
their rize. i3y Y,iai- :::ethod tree C;:-.:r._st -:art;/ controls all Rumania's in-
dus,,ricc.
Tl~e budEet c*_' the ministries i~f Nines arzd Petroleum is entreated at
2`x;00,060 lei in 'x?51. Ti;e .uncticm and 3uty of :.~cac txo mini:tries is Co
carry .ut the orders of the Ssvir_ts, wi.o are en;aGe3 in a campaign of svst?m-
ati.c exploitation of the coua'.:r,r's ,?esources.
... ;i;e State Geol~ica~ Com::.ittee
TY.e State Geological Committee is tree fc:rmer Rumanian Geological Institute.
It falls under the direc', ~urisdicti^,, of the Presidi+.r.: of ti-r Council of
Ministers, and its chief aim is to study and evaluate fire underground deposits
o` ti;c count?y. The corraittee is ctim_ used of flee ; O11Gwixxv se; `,icn,
i. Geology. ~nd_ topoLraptiy,
G. JL:rfnce exploration (scismo?;ran::y, ~;?avi.metry, etc.),
3. llri.it exploration:-,
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be an easy-going man. T?ze director of the Committee is Profesacr P~lacovei (fnu)'
In 1851 ths: State Geological Co-+~ittee was eo~posed of 58 sectors ai;sl r_~,ployeci"
4. vrilling exploration (average drilling 800 m.
S. Deer-drf~ling, exploration.
6. 4~orkshops section,
and assistant.topogra-phers, std 30 laborers.,;
ant engineers, 50 of'f'ice xcr!rcre, eraployel for field 'xor;~, , and 300 laborerr.:
100 engineers, j00 offlce workrr?s emoloyeu _?or field xorf, c:n~: 6,500 laborer.
5. The dean-drilling section l:as ~ ui:-ectors, :?~~ engineers, 100 office
workers, erd ltd laborers .
6. Tha workshops section his 2 directors, 15 en~inees and draftsmen,
80 office corkers, and 500 laborers.
7. The administration section has 2 directors (one a party member),
15 geolog..cal engineers. 30 office workers, and 50 .laborer.,,
All the work of the Staate Geological Committee is sut~mf.tted to the
Presidium of the Council of Mi~iLoters for transmittal to Sovreaapetrol. The
latter body crakes all decisions on exploitation and exploration. Sovrompetrol
has i+:. uxn depar':.::ent of exploration, but its activities are somewhat limited.
The budget ~` t.;:e State Geolo6_ca1 Committee is said to be unlimited, but the
expenses for '_~.-~5i -.rcr^_ ^rpro-~:sata~~: 13 million to 15 million lei.
A. Plants
The folloxing oil-well equipment plants operate in Rumania under the con-
trol of Savrompetrol and 3oti-rcmnetal:
1. The Central ConcorJia ilvrks in Ploesti rc:anutacture all types of drill-
ing equipment, e.E., csthesds, si~ecial frill ti~its, metal derric'ts, clsaning
pumps, rotary tables, etearn pumas, cranes, rotary sxiveis, stea.?c boilers, oil
reservoirs, and tool ,jai.nts. T'.e factory employs 2,5a; corkers s.nd is equipped
with ~rorkshops,two Bessemer f+:sna:es, and vsu?icun furnaces for mixing alleys of
nickel steel, chromium cast steel., and bronae steel. ihu?ir~ Ldorld War II tUe
factory produced antisircraft gum. The Soviets subsequently expanded the shops
to produce steam boilers, storage tanks, and tank cars. Al.l these were shipped
to the I1SSR under the guise of war aomnensation.
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building catheads, Tire ?riop p~?ods~ces ktea.ters s~nfl reservoirs, anti, repair$
b. ',^,:e k+lalara i~o:ka in liuc::are~it is a lococaotive-nasnuf'aetr,rrin ~:nc] _e-
v. Thy Ler:aitre ASetel:rGris in BucY;n: est prGduces tine sane ~~)e o? equip-
z7ent ~..~ the '.o'..^ clop.
mire 'Jug can 14eta1?w?o_ Ys preciuces eservoirs and boi i e:?s, and repairs
compressors, ciectris mctcrs, ~alln~ stocL, a.^.3 tubing.
iG. T?~.c Darr:enst`, hietal:mrlcs -.~^s built b;, a U~ ?irm tG ,~~a:rufaceure boahc
T:~e fac'~o.y later was converted :c :;'re production of petroleum equipment.
tel. tae i'Lnen Cent?al Worla ,n?oiuccy tcols aria equipment for the petro-
icur.. i_^.~hwtry. ~,, _ _'_oys approx., ~:n;.e~i ~ 6C0 men.
__. 'i::c .:c:._ _ .., _.. bra..,.. (?,:u :, a1_~:) de._'_s in beau,; Indust. end
l'3. rr.~ 7oiaza ,.,,__s ;.z: Brasov ~;_,,.:..__~ ,e .>._rc __)e Gf rmacl~ine~?y M..
i:;,c L.:hi17.:dorksnGp,
1=:. The former iHR (Int:;.i)rinderilc i.crornutice i3U~2Ste, ;.~sm:.:nian
f>e_o.L:.ui.ica_ Lnterp_ises) ..o_..~ produce., ..~e~.,.ic arc ~o1=ne rmoto_a, ccn-
pressors, and precision instr.Lrents. Thi.: .., t::e former itumanian ~teronnutica_
TdJrl.o .
L5. A :actor} fe^ the production of meia_.:cr:r~u too_s :.s located at
tea s r: ~v .
:1.6. Several. metal shoos for ;;?re p::>ductiun o ~ei.l'.f,~i::Y,e:i ruo