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Romania's Romgaz, Azerbaijan's SOCAR sign MoU on oil, gas production

Romania's Romgaz, Azerbaijan's SOCAR sign MoU on oil, gas production Romania's Romgaz, Azerbaijan's SOCAR sign memo on oil and gas production

BUCHAREST (Romania), October 25 (SeeNews) - Romanian natural gas producer Romgaz [BSE:SNG] said on Friday it has signed a MoU with Azerbaijan's national oil company SOCAR on cooperation in oil and gas upstream projects.

The purpose of this Memorandum is to establish strategic cooperation in order to develop projects of common interest primarily in Azerbaijan and Romania, as well as internationally, Romgaz said in a press release.

"Cooperating with a partner like SOCAR is an excellent opportunity that will bring many common benefits. Sharing know-how and transferring technology and experience between the two countries with a similar history in the field of oil and gas, will result in a successful partnership. The latest technology and expertise can generate significant discoveries in border basins, especially in less explored border basins," Romgaz CEO Constantin Adrian Volintiru said.

Romgaz and Socar first announced that they are considering a partnership in off-shore projects in the Black Sea in January.

Socar is involved in the exploration of oil and gas fields, processing and transport of petroleum, of gas and condensed gas as well as on petroleum and petrochemical products trading on domestic and international markets. It also supplies natural gas to industrial and household consumers in Azerbaijan.

The majority shareholder of Romgaz is the Romanian state with a 70% stake, with the balance of 30% in free float on the BVB. 

Shares in Romgaz traded 0.53% lower at 37.75 lei ($8.8/ 7.9 euro) lei by 1020 CET on Friday on the BVB.

The total hydrocarbon production of Romgaz edged up 0.9% to 25.5 million barrels of oil equivalent (boe) in the first nine months of 2019.

(1 euro=4.7528 Romanian lei)