March 10 (SeeNews) - Romania's top oil and gas group OMV Petrom [BSE:SNP] said on Wednesday that it has signed a production sharing contract for Block II in Georgia's exclusive economic zone in the Black Sea.
Exploration works are expected to start this month, OMV Petrom said in a press release.
The contract provides for exploration, development and production of hydrocarbon resources in the offshore Block II. It covers a total area of 5,282 sq km and the water depth varies between 400 and 2,000 m.
OMV Petrom will establish an operating company in Georgia, proceed with geoscientific and environmental studies in 2021 and prepare for a large offshore 3D seismic campaign in 2022, which will allow for a detailed evaluation of this block’s potential.
"By signing the PSC for the offshore exploration Block II in Georgia, we take an important step in the eastern part of the Black Sea, in line with our strategy of looking for opportunities in the Black Sea region," OMV Petrom CEO Christina Verchere said. "We believe that the Black Sea has a high potential for the upstream sector and with our operating experience of over 40 years in the Romanian offshore area we have a competitive advantage in evaluating the opportunities of this basin."
OMV Petrom won in June an international tender organised by the Georgian economy ministry for offshore acreage.
OMV Petrom has exploration, development and production operations in the shallow waters (Istria block) of the Black Sea, and exploration operations in partnership with ExxonMobil in deep water areas (Neptun Deep) of Romania. Oil and natural gas production in the shallow waters amounts to approximately 24,000 boe/day. In 2020, it accounted for 16.4% of the group’s domestic production.
In a joint venture with operator Total, OMV Petrom is also active in exploration and appraisal activities in the Han Asparuh Block in Bulgaria. The total exploration acreage of OMV Petrom’s interests in Romania and Bulgaria amounts to 26,000 sq km.
OMV Petrom is the largest integrated energy company in Southeast Europe, with an annual group hydrocarbon production of 53 million boe in 2020. The group has a refining capacity of 4.5 million tons annually and operates an 860 MW high efficiency power plant. It is present on the oil products retail market in Romania and neighboring countries through 793 filling stations, at the end of 2020, under two brands – OMV and Petrom.
Austria's OMV Aktiengesellschaft holds a 51% stake in OMV Petrom. The Romanian state, through the economy ministry holds 20.6% of OMV Petrom shares, Fondul Proprietatea holds 7%, and 21.4% is the free float on the Bucharest Stock Exchange and the London Stock Exchange.
Shares in blue-chip OMV Petrom traded 0.50% higher at 0.4010 lei ($0.1/0.08 euro) by 1458 CET on Wednesday on the Bucharest Stock Exchange.
($=4.8863 euro)
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