Petrom signed a new contract for production enhancement
- Mature fields specialist, PetroSantander, will undertake investments and perform services on behalf of Petrom in nine fields in the Arad area
- Estimated production enhancement of 50% from the respective fields within five years
Petrom, the largest oil and gas producer in Southeastern Europe, signed a 17-year production enhancement contract for nine onshore fields in the Arad area, with PetroSantander, a private Canadian company specialized in the operation and rehabilitation of mature fields. According to this contract, PetroSantander will manage the respective fields, provide the necessary expertise and technologies as well as the financial and human resources. A joint committee formed of Petrom and PetroSantander representatives will supervise the operations and Petrom will remunerate PetroSantander for delivered production, depending on the production level.
Johann Pleininger, member of Petrom Executive Board, responsible for Exploration and Production:” I am happy to announce a new contract for production enhancement on mature fields, with a Canadian company specialized in such operations. In Romania, optimization of oil and gas production will be achieved by applying the latest technologies and focusing our efforts on the re-development of several major fields as well as through partnerships with internationally reputed companies on selective fields”.
This contract covers nine mature fields situated in the West of Romania, close to Arad, fields that have been exploited for the last 40 years and which provide together approximately 1% of Petrom’s domestic production.
PetroSantander will perform services for the fields’ redevelopment and operation and will provide the necessary financing. In the first five years, through specific operations, PetroSantander expects production to be enhanced by at least 50%, compared to the production trend.
Production operations and related services, as well as the employees involved in these activities will be transferred to PetroSantander for the duration of the contract.
Petrom will remain the title holder of the concessions contracts, the hydrocarbon production, the existing assets as well as of the rights and obligations as defined by the Petroleum Law.
Petrom Group
Petrom Group is the largest oil and gas group in Southeastern 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 Southeastern Europe following a far-reaching modernization and efficiency increase process whereas investments accounted for more than EUR 5 bn during the last five years.
In Romania and Kazakhstan, the Group exploits proved oil and gas reserves of approximately 854 mn boe (in Romania 823 boe) and has a maximum annual refining capacity of 8 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 an 860 MW gas fired power plant at Brazi and acquired the project for the construction of a 45 MW wind park.
In 2009 the Group’s turnover was EUR 3,795 mn, EBITDA was EUR 969 mn. OMV, the leading energy group in Central and Southeastern Europe holds a 51.01% share in Petrom. OMV is active in 12 Central European countries in its Refining and Marketing business segment and in 17 countries on four continents in Exploration and Production. 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.