Romania: OMV Petrom-Exxon Black sea oil-gas JV project feasible

, SEE Energy News

It must be possible to export natural gas from offshore fields in the Black Sea developed by OMV Petrom in partnership with ExxonMobil for the project to be feasible, said the CFO of OMV Petrom, Andreas Matje.

In order to have Black Sea exploitation project to be feasible, we need export opportunities explained said Matje.

Romania has consumed in 2015, 121 100 000 MWh of natural gas, 4.5% lower level than that registered in 2014 , namely 127 million MWh, according to reports of the National Regulatory Authority for Energy (ANRE ). Previously, the Romanian natural gas consumption had dropped sharply in 2013 and 2014 after a peak recorded during 2010 – 2012. Consumption fell by over 8% in 2013 and by a further 4% in 2014. The main reason was the massive reduction in consumption industry, especially producers of fertilizers.

The final decision on the investment in the area of natural gas field Neptune Deep in the Black Sea concession JV of OMV Petrom and US group ExxonMobil, could be developed in two years , and production on the perimeter could begin early next decade, shown in the 2015 the preliminary report on Romanian oil and gas producer.

In January 2016 second drilling campaign was completed, which included the drilling of seven wells in total, the majority indicating the presence of gas, and the successful testing of a probe structure Domino. Total investment in this project since 2008 exceeded $ 1.5 billion, costs divided equally among the partners in the concession.

Campaign results of drilling are sufficiently encouraging for further analysis in more detail in order to determine the viability of commercial development. The partners will analyze, evaluate and optimize development strategy to determine the most effective development plan for the resources discovered. This could include a development in stages. Considering information available at this time, the final investment decision could be taken about two years, and the first production could be achieved early next decade, explained OMV Petrom official.

ExxonMobil and OMV Petrom each hold 50% of the deepwater Neptun block, operated by the American company. The two companies announced in February 2012 that they made a significant discovery of hydrocarbons from Domino-1 well drilling, preliminary estimates placing the deposit of natural gas to 42-84 billion cubic meters, transmits