ExxonMobil, OMV Petrom Strike Gas Offshore Romania

ExxonMobil’s affiliate EMEPRL Corporation and OMV Petrom SA, the 51% subsidiary of OMV Aktiengesellschaft, today confirmed a potentially significant gas discovery in the Black Sea offshore Romania.

Operated by ExxonMobil, the Domino-1 well is the first deep water exploration well offshore Romania and has a total depth of more than 3,000 meters below sea level. The Domino-1 well is located in the Neptun Block, 170 kilometers offshore in water approximately 930 meters deep.

The exploration well encountered 70.7 meters of net gas pay, resulting in a preliminary estimate for the accumulation ranging from 1.5 to 3 trillion cubic feet (42 to 84 billion cubic meters). Drilling operations started at year-end 2011 and are in the process to be finalized. ExxonMobil and OMV Petrom plan new 3D seismic acquisition during 2012. The evaluation of the Domino-1 well results and the new seismic will determine next steps.

Petrom’s report says that it is too early in the data evaluation and exploration process to determine whether the Neptun block will ultimately prove to be commercially developable or not. However, should further work confirm the technical and commercial feasibility of deep water gas production from the Neptun block, further investment during both the exploration and development phases could reach several billion USD with the potential for first production towards the end of the decade at the earliest.

The drilling of Romania’s first deepwater well began last month. The well is being drilled by the world-class, sixth generation drillship, Deepwater Champion, which recently transited to Romanian waters after completing its drilling program offshore Turkey.

[mappress]
Offshore Energy Today Staff, February 22, 2012