May 19, 2011
- The five new key-wells, which were successfully brought on stream, contribute with around 6% of Petrom daily gas production in Romania
Petrom, the largest oil and gas producer in Southeastern Europe, announces several successful projects in the Exploration and Production business segment. Five wells drilled onshore on three fields located in Oltenia region contribute significantly to the company’s production, representing more than 6% of the daily gas production.
Johann Pleininger, member of Petrom Executive Board, responsible for Exploration and Production: "Ensuring a sustainable production in Romania is a challenge. Most of our operated fields are mature fields, with an average production age of around 45 years and therefore require significant investments: in the last 6 years we invested around EUR 4 billion in Exploration and Production and we will continue our investments at the same high level. Successfully bringing the five new wells on stream is an excellent result and shows our commitment to supply energy in Romania".
The production obtained by the five new wells is a result of the re-development programs we initiated on a series of fields in Romania and exploration programs realized in order to compensate the natural decline and to unlock our potential in the exploration and production segment.
The wells Mamu 4335 and Mamu 4338 were drilled as part of the Mamu field re-development program, which includes the drilling of new wells and the modernization of surface production facilities. Mamu is a condensate gas field, where the exploitation began in 1988. After putting on stream the two wells drilled at a depth of around 5,000 meters, the production on this field increased by around 2,800 boe/day.
The well Radinesti 50 was drilled in the Radinesti structure, which was discovered following a 3D seismic program performed in 2007. Drilled at a depth of around 2,700 meters, the well contributes with a daily production of around 1,900 boe/day.
The wells Bustuchin 1007 and Bustuchin 1009 were drilled in the Bustuchin field which has been producing since 1959. Drilled at a depth of around 2,700 meters, the two wells increased the field’s daily production by around 1,200 boe/day.
The five new wells contributed significantly to the increase of the domestic gas production in the first quarter of this year which reached more than 93 thousand boe/day.
"These wells were all drilled in fields located in Oltenia – in the Southwestern region of Romania. We believe Oltenia has a high gas potential and therefore we focused important investments in this area. Last year we successfully finalized the gas compressor station in Hurezani and we will continue by launching a major initiative to optimize the gas production systems in the Southwestern region of Romania", Johann Pleininger added.
Petrom Group is the largest oil and gas group in South-eastern Europe, with activities in the business segments of Exploration and Production, Refining and Marketing as well as Gas and Power. The Group consolidated its position on the oil market in South-eastern Europe following a far-reaching modernization and efficiency increase process whereas investments accounted for more than EUR 6.6 bn during the last six years.
In Romania and Kazakhstan, the Group exploits proved oil and gas reserves of approximately 832 mn boe (in Romania 805 mn boe) and has a maximum annual refining capacity of 4.5 mn tons.
On the distribution market of oil products, Petrom Group is present through a network of approximately 800 filling stations, operated under two brands, Petrom and OMV. The activity in Romania is performed through OMV Petrom Marketing, 100% owned by Petrom. OMV Petrom Marketing operates 546 filling stations, out of which 389 are Petrom and 157 OMV. The Group also owns an international network of approximately 250 filling stations, located in Republic of Moldova, Bulgaria and Serbia.
For the Group’s sustainable development, its strategy includes business diversification by approaching the power market. In this context, Petrom is building a 860 MW gas fired power plant at Brazi and acquired the project for the construction of a 45 MW wind park.
In 2010 the Group’s turnover was EUR 4,421 mn, EBIT was EUR 709 mn.
OMV, one of Austria’s largest listed industrial companies holds a 51.01% share in Petrom. OMV is active in 13 countries in its Refining and Marketing business segment while in Exploration and Production is active in two core countries, Romania and Austria, and holds a balanced international portfolio. Ministry of Economy holds 20.64% of Petrom shares, Property Fund SA holds 20.11%, the European Bank for Reconstruction and Development 2.03% and 6.21% is free float on Bucharest Stock Exchange.