ExxonMobil and OMV Petrom Explore New Prospect on Neptun Block offshore Romania
ExxonMobil Exploration and Production Romania Limited (EMEPRL) and OMV Petrom S.A. (OMV Petrom) have started drilling the Pelican South-1 exploration well on a new prospect in the Neptun Block.
The Ocean Endeavour rig is drilling the Pelican South-1 wildcat well about 155 kilometers offshore in the Romanian sector of the Black Sea.
The Pelican South-1 well will test a new geological structure on the Neptun Block.
Earlier in October, the Ocean Endeavour rig completed drilling the Domino-2 well and data from the well are being evaluated.
"Exploration for oil and gas in frontier areas is complex and very detailed, often taking years to complete. A thorough understanding of the geology is essential prior to making the significant investments required to develop such a discovery", said John Knapp, managing director of ExxonMobil’s affiliate in Romania.
"The Black Sea region plays a central role in our strategy and we allocate significant financial and technical resources to the offshore projects. We are encouraged by the good results so far, in shallow and deep waters. However much of the activity in the Black Sea deepwater area is of a frontier, pioneering nature, involving high investment risks and therefore requiring a stable investment framework", said Gabriel Selischi, member of OMV Petrom Executive Board responsible for Exploration and Production.
ExxonMobil Exploration and Production Romania and OMV Petrom each hold 50 percent of the deepwater sector of the Neptun Block. ExxonMobil Exploration and Production Romania Limited is the operator.
Neptun Block (Deep Water Sector)
The Neptun Block deep water sector covers an area of approximately 7,500 square kilometres in water depths ranging from 100-1,700 meters. ExxonMobil Exploration and Production Romania Limited and OMV Petrom signed an agreement in November 2008 for ExxonMobil to acquire a 50 percent interest in the deep water sector of the Neptun Block. In 2012, ExxonMobil and OMV Petrom announced the Domino-1 exploration well had encountered natural gas in the deep water sector of the Neptun Block. The Domino-1 well is located 170 kilometres offshore in water about 1,000 meters deep.
ExxonMobil is highly experienced in deep water operations. The company has drilled more than 250 wells over the last decade in water depths of 750 meters or more. ExxonMobil is a recognized global leader in operating complex offshore projects and has been involved in more than 32 deep water developments since 2005.
OMV Petrom is the largest integrated oil and gas group in Southeastern Europe, with an annual oil and gas production of approximately 66 mn boe. The Group has a refining capacity of 4.2 mn tons / year and owns an 860 MW high efficiency power plant and a 45 MW wind park. OMV Petrom is present on the oil products retail markets in Romania and neighboring countries through approximately 800 filling stations.
OMV, Austria’s largest listed industrial company, holds a 51.01% share in OMV Petrom. The Romanian state, via the Ministry of Economy, holds 20.64% of OMV Petrom shares, the Property Fund holds 18.99% and 9.36% is free float on the Bucharest Stock Exchange.
In the last nine years investments for the consolidation and modernization of OMV Petrom amounted to EUR 10 bn. The annual direct, indirect and induced impact of OMV Petrom in Romania’s GDP is around 5%.
Starting 2007, OMV Petrom integrated the principles of corporate responsibility within its business strategy. In this period, the company allocated more than EUR 40 mn for the development of communities in Romania, focusing on environment protection, education, health and local development. Andrei’s School is the main platform for community involvement.
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