Romania: GazpromNeft NIS Serbia gets approval for oil research project with East West Petroleum

, SEE Energy News

Romania’s government has approved an agreement for the performance of geological exploration works that were signed by East West Petroleum and the National Agency of Natural Resources of Romania for concession blocks BaileFelix, Periam and Biled. Such prior permission of the Government of Romania issued to partners GazpromNeft NIS Serbia and East West Petroleum for joint project – the block Tria.

Liabilities which partners took over envisage to implement 2D (total length – 880 km) and 3D (total area – 600 km) seismic investigations on the territory of four blocks, as well as to define the drilling of 12 exploratory wells (each 3 wells in each of four blocks).

Part of the 2D seismic-research works has already been carried out on the block Tria, and cycle for 3D seismic-exploration tests is currently being prepared.

It is planned that the seismic-research works on blocks BaileFelix, Periam and Biled start in the first half of 2014. On the territory of the blocks Partners will conduct only geological surveys of conventional hydrocarbon reserves with the use of environmentally friendly technologies.

Carrying out geological exploration in the territory of blocks BaileFelix, Tria, Periam and Biled is carried out in the framework of implementation of agreements signed in 2011 between the National Agency of Natural Resources of Romania (NAMR) and the Canadian company EastWestPetroleum. Subsidiary company NIS in Romania has the status of the operator of the project.

Participation in the project is divided in relation to 85 percent in favor of NIS and 15 per cent in favor of EastWestPetroleum.

– Ratification of licenses for oil and gas blocks in the framework of a joint project with East West Petroleum enables us to approach the realization of undertaken license liabilities. Based on the results of performing detailed seismic-research work we intend to confirm the preliminary estimates of reserves and to define the optimal methods of production in these blocks – said General Director of NIS, Kirill Kravchenko.

We have serious grounds to count on a positive result of the geological research, because there are four Romanian geological blocks associated with oil and gas on the territory of Serbia, he added.

– NIS has twice increased the volume of proved reserves and production of hydrocarbons in Serbia in recent years. I’ll add that we successfully work in the upstream segment and other key countries in the region, but a joint project with East West Petroleum is currently the largest foreign project for us – said Kravchenko.

Source; Serbia Energy/NIS

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