OMV Petrom and Petrofac agreed on the early termination of the production enhancement contract for Ticleni area
- Since 2010, based on the production enhancement contract, Petrofac has been exploiting nine oil fields in Ticleni area
- After the early termination of the production enhancement contract, petroleum operations in the area will continue
OMV Petrom, the largest oil and gas producer in South-Eastern Europe, has agreed with Petrofac, upon the latter’ s request, on the early termination of the production enhancement contract for Ticleni area, Gorj County (PEC Ticleni). The contract concluded in 2010 for a 15 year - initial period aimed at the revival of mature oil fields in this area, through a field redevelopment project. During the contract, Petrofac performed production operations and related services, while OMV Petrom remained the titleholder under the petroleum concession agreement and holder of the existing rights and obligations as defined by the Petroleum Law.
Further to this early termination, Petrofac will exit PEC Ticleni during the second quarter of 2016.
"The current international low crude price environment raises many challenges for the exploitation of mature fields with declining production, such as many of the fields in Romania are", said Gabriel Selischi, member of OMV Petrom's Executive Board responsible for Upstream.
After termination of PEC Ticleni, production operations will be continued by a company owned by OMV Petrom which will take over from Petrofac all its approximately 870 employees.
The nine oil fields in Ticleni area that were targeted by the contract with Petrofac are mature and have been in production for more than 60 years.
About OMV Petrom
OMV Petrom is the largest integrated oil and gas group in South-Eastern Europe, with an annual oil and gas production of approximately 65 mn boe in 2015. The Group has a refining capacity of 4.5 mn tons / year and operates 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 as of end of 2015.
OMV, one of Austria's largest listed industrial companies, holds a 51.01% share in OMV Petrom. The Romanian state, via the Ministry of Energy, Small and Medium Enterprises and Business Environment, holds 20.64% of OMV Petrom shares, Fondul Proprietatea (Restitution Funds) holds 18.99% and 9.36% is free float on the Bucharest Stock Exchange.
For more details and information:
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Website: www.omvpetrom.com; www.petrom.ro