- Additional, pre-appraisal evaluation of Domino-1 well results enables an initial estimate of potential gas production of approx. 630 mn cf per day
OMV Petrom continues to progress plans for future activity in the deep water sector of the Neptun Block offshore Romania, following the gas discovery made at the first well - Domino-1 - announced in February 2012, jointly with operator ExxonMobil Exploration and Production Romania Limited (EMEPRL).
A 3D seismic survey on the Neptun Deep block, the largest survey ever recorded in the Romanian sector of the Black Sea, started at the end of 2012 and is expected to be completed in Q2/13. EMEPRL and OMV Petrom expect to invest up to USD 1 bn in their exploration program, which comprises the ongoing 3D seismic survey and further exploration and appraisal drilling, expected to begin in late 2013 or early 2014.
Further evaluation of the Domino-1 well results has enabled an initial pre-appraisal estimate of potential gas production from a future Domino development of approx. 630 mn cf/d (million cubic feet per day). However, further acquisition and interpretation of data, including appraisal drilling and well testing, is needed to confirm the resource size and its commerciality before any decision is taken to proceed to a development phase. Moreover, should further work confirm the technical and commercial feasibility of deep water gas production from the Neptun block, further investments during both the appraisal and development phases could reach several billion USD with the potential for first production towards the end of the decade at the earliest.
"OMV Petrom and EMEPRL remain very encouraged by the Domino-1 discovery which is very important to Romania" said Mariana Gheorghe, CEO, OMV Petrom. "The Neptun Deep block is unique and technically challenging, thus future development will require very substantial investment over a long time period. While we are enthusiastic about the program results and early development planning, we are very much looking forward to commencing the following drilling campaign planned by end of the year."
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Neptun Block (Deep Water Sector)
The Neptun Block deepwater sector covers an area of approximately 9,900 square kilometers in water depths ranging from 50 to 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 deepwater portion of the Neptun Block. In January 2012, ExxonMobil and OMV Petrom announced the Domino-1 exploration well encountered natural gas in the deepwater sector of the Neptun Block. The Domino-1 well is located 170 kilometers offshore in water about 1,000 meters deep.
Petrom is the largest oil and gas group in Southeastern Europe, with activities in the business segments of Exploration and Production, Gas and Power as well as Refining and Marketing. The Group consolidated its position on the oil market in Southeastern Europe following a far-reaching modernization and efficiency increase process whereas investments accounted for more than EUR 8.8 bn during the last eight years.
As of the end of 2012, the Group exploited proved oil and gas reserves of approximately 775 mn boe in Romania and Kazakhstan (thereof 750 mn boe in Romania). With a maximum annual refining capacity of 4.2 mn t, Petrom is present in the distribution market for oil products in Romania, the Republic of Moldova, Bulgaria and Serbia through a network of approximately 800 filling stations, operated under two brands, Petrom and OMV. In Romania, this activity is performed through OMV Petrom Marketing, 100% owned by OMV Petrom.
For its sustainable development, Petrom has expanded the gas value chain into power. In this context, Petrom started commercial operations of the 860 MW gas fired power plant at Brazi and at the Dorobantu 45 MW wind park.
In 2012, the Group’s turnover was EUR 5,891 mn, EBIT was EUR 1,270 mn.
OMV, Austria’s largest listed industrial company holds a 51.01% share in OMV Petrom. In Exploration and Production, OMV is active in two core countries Romania and Austria and holds a balanced international portfolio. In Gas and Power, OMV sold approximately 437 TWh of gas in 2012. In Refining and Marketing, OMV has an annual refining capacity of 22 mn t and as of the end of 2012, approximately 4,400 filling stations in 13 countries including Turkey.
The Ministry of Economy holds 20.64% of OMV Petrom shares, the Property Fund SA holds 20.11%, the European Bank for Reconstruction and Development 1.62% and 6.62% is free float on the Bucharest Stock Exchange.