Romania has over 160 years of history in crude oil production & refining. It was among the first producing countries and one of the largest oil producers in the world at the beginning of the 20th century. Currently, after more than a century and a half of production, most of the fields have matured. However, recent gas discoveries in deep waters of the Black Sea indicate great potential. OMV Petrom is the successor of this rich history.
In 1857, with Romania being the first country to statistically report crude oil production and the first refinery in Europe (Mehedințeanu) being built near Ploiești, the fascinating journey of the Romanian oil & gas industry started to develop.
By the beginning of World War I, the industry saw a rampant development, mostly due to foreign investment. Before the beginning of World War I, approx. 75% of the invested capital in the Romanian oil industry was German, British and Dutch, while the Romanian capital had only an 8% share.
International players who were attracted by the Romanian oilfields included Standard Oil (Româno-Americană subsidiary, created in 1904) and Shell (Astra Română subsidiary, created in 1910).
The communist era
The period between 1947-1989 is known as the Communist era in the Romanian history. All oil companies were nationalized after the end of World War II and their assets were exploited by Sovrom Petrol, a company owned by the Romanian state and Russia. In 1976, a spike of 15 MN tons of oil production was reached and production started to decline thereafter.
A state owned company in a transition economy
After the Revolution in 1989, all Exploration & Production activities in Romania were taken over by the Romanian Petroleum Company, a state-owned company. The company continued to face challenges related to lack of investments and political interference. In 1997, it was transformed in SN Petrom, which also included two refineries - Arpechim and Petrobrazi, likewise lacking investment and coping with negative refining margins.
End 2004, OMV Petrom was privatized, with Austrian OMV AG being the new majority shareholder. The company underwent a vast reorganization & restructuring process and benefited from major investments for modernization (EUR 17 bn between 2005 and 2021). Currently, OMV Petrom is a solid and modern company.
Exploration & Production major projects:
- Neptun Deep: 8 wells drilled in Black Sea deepwater sector during exploration phase (2012-2016), most of them successful, 42-84 bn cubic meters initial estimates for resource accumulation
- Significant discoveries, currently producing: Totea (onshore gas, discovered 2011), Delta (offshore oil, 2009), Padina (gas, JV Hunt Oil, discovered 2015)
- New gas treatment plants: Burcioaia, Madulari Hurezani centralized gas treatment hub comprising of a gas compression unit a dehydration unit and CHD Hurezani (Centralized Hydrocarbon Dewpoint Hurezani),
- Multimillion euro investments every year in drilling and workover activities
- Seismic data acquisition campaigns
- Energy efficiency program in which we built G2P (Gas 2 Power) and CHP (Combined Heat and Power) units that generates electricity and steam for internal use
- Viscous water injection projects in various fields
Refining & Marketing major projects:
- Petrobrazi refinery modernization: 1.2 billion euro invested 2004-2014
- New units to capitalize on market opportunities (e.g. Polyfuel)
- Refinery tank farm and storage network optimization
- Implementation of digital technologies for maintenance and operations (Advanced Process Control & Distributed Control System)
- Modernization and optimization of filling stations network
- Development of strategic partnerships on non-fuel business and alternative mobility
- Modernization of filling stations network
Gas & Power major projects:
- Brazi power plant: the largest private greenfield project in electricity generation; can cover up to 10% of Romania's electricity consumption (at maximum capacity); investment > 500 million euros
- Utilio: the 100% online platform dedicated to small and medium enterprises, where businesses can sign a gas or power supply contract within minutes and benefit from a unique end to end digital experience