- Large area of 15,000 square kilometers in Romania will see new modern oil & gas exploration activities over the next three years
- For the first time since its foundation in 1997, Petrom SA acquires new exploration acreage in Romania
Petrom, the largest oil and gas producer in the South Eastern Europe, will sign the contract for exploration licenses for three blocks in Romania. An area around 15,000 square kilometers will be explored to find new oil and gas by using most modern exploration technologies in the next three years. “ We consider winning this bid a real success, as we had to demonstrate our competitiveness as much as the participation in the bidding was an international one. Petrom’s targets for 2010 are very ambitious and this acquisition represents a new important step in reaching them”, said Mr. Werner Ladwein, member of the Managing Committee responsible for exploration and production.
In the course of a bid organized by the National Agency for Mineral Resources (ANRM) for the concession of the exploration licenses for three blocks, Petrom was declared the winner. According to the offer, Petrom has assumed to carry out seismic exploration for 2,700 km with 2D technology and around 100 km2 using state of the art 3D seismic technology. During the first phase, which will last for 3 years, Petrom will also drill 9 exploration wells. After this period, Petrom has the option to go into a second exploration phase for another 3 years, which includes further seismic and drilling of new wells.
The three blocks - Maramures is located in the northern part, Giurgiu and Rosiori in the southern part of Romania – each have a size of between 4,900 and 5,300 km2. „These areas until now have seen only little exploration activities and we consider, that there is a real potential for discovering new oil and gas reserves”, declared Mr Ladwein.
At the beginning of 2005, a new exploration strategy aiming at the implementation of modern technologies, namely the introduction of 3D seismic as well as performance driven drilling operations management was adopted. Advanced tools are being used in the exploration activities leading to increased accuracy. The very detailed and precise data acquired from 2D and 3D measurements will serve as a base for the drilling of new exploration wells and also for potential future field developments.
Until 2010 Petrom aims to stabilize its oil and gas production at a daily production of 210,000 boe in Romania, and to increase the reserves replacement rate to 70%. In addition, the company will develop its business in the Caspian Region. The investments in exploration and production will go up to EUR 300 mn per year. EUR 100 mn per year will be invested in exploration activity only.
Petrom is the largest Romanian oil and gas group, with activities in the business segments of Exploration and Production, Refining and Petrochemicals, as well as Sales and Marketing. Petrom has estimated oil and gas reserves of 1 billion boe, refining capacity of 8 million metric tons and 600 filling stations. In 2004 the sales revenue of Petrom was EUR 2,143 million, EBITDA was EUR 28 million. Since December 2004 OMV, the leading oil and gas group in Central Europe holds a 51% share in Petrom. OMV is active in Refining and Marketing, Exploration and Production, Gas as well as Chemicals in 28 countries on five continents. The Romanian state holds 40.74% of Petrom shares, the European Bank for Reconstruction and Development, 2.03% and 6.23% are owned by minority shareholders.