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Romania's OMV Petrom to transfer 40 oil/gas fields to Dacian Petroleum

Romania's OMV Petrom to transfer 40 oil/gas fields to Dacian Petroleum Author: OMV Petrom. License: All rights reserved.

BUCHAREST (Romania), January 9 (SeeNews) - Romania's top oil and gas group OMV Petrom [BSE:SNP] said it has reached an agreement for the transfer of 40 onshore oil and gas fields in Romania to Dacian Petroleum.

The transfer is part of the portfolio optimization programme within the Upstream Division of OMV Petrom, which aims to streamline operations and focuses on the core and most profitable fields, OMV Petrom said in a statement filed with the Bucharest Stock Exchange, BVB, on Wednesday evening.

Under the agreement, OMV Petrom will also transfer wells and related oil and gas infrastructure, together with approximately 190 employees. The selection process for the company to take over the licences was conducted according to best international practices, the group said. The process spanned over 30 months and several operating companies from Romania and abroad participated in it.

The transfer of rights and obligations under the concession agreements is subject to approval by the relevant authorities, pursuant to the Petroleum Law. Located in southern Romania, the 40 fields have a total oil and gas production of approximately 1,700 boe per day, representing roughly 1% of OMV Petrom’s production. 

Dacian Petroleum enters into the business transfer arrangement with a view to extending the life cycle of the 40 fields, which are considered marginal for OMV Petrom.

This is the third divestment within OMV Petrom’s Upstream portfolio optimization program. Previously, 28 other fields were divested to Mazarine Energy Romania - 19 fields in August 2017 and 9 in March 2019,

Shares of OMV Petrom traded flat at 0.4490 lei ($0.1/ 0.09 euro) as at 1040 CET on Thursday on the Bucharest Stock Exchange.

(1 euro =4.7776 lei)