BUCHAREST (Romania), January 9 (SeeNews) – U.S. company Exxon Mobil Corporation and Romanian oil and gas group OMV Petrom [BSE:SNP] said on Monday they have started exploration drilling on Domino-1, the first deepwater exploration well in the Romanian sector of the Black Sea.
The Domino-1 well is located in the Neptun Block, 170 kilometres offshore in water about 1,000 metres deep. Drilling operations are expected to take about 90 days, the two companies said in a joint statement.
Exploration drilling, especially in such frontier, unexplored areas as the deepwater Black Sea, may or may not result in a discovery. If commercial discoveries are made, the development of the Neptun Block would yield significant positive industrial, social and economic benefits for Romania.
“Deepwater exploration carries high investment risks and requires investments of several hundred million U.S. dollars, yet a potential success would fundamentally change the perspective of the Romanian energy sector,” OMV Petrom’s Executive Board Member responsible for Exploration & Production, Johann Pleininger, said in the statement.
Exxon Mobil Corporation will operate the drilling via its Romanian affiliate, ExxonMobil Exploration and Production Romania Limited, which signed an agreement in November 2008 with Petrom to acquire a 50% interest in the deep water portion of the Neptun Block.