OMV strikes oil in Black Sea (Romania)
- Business & Finance
OMV Petrom has announced the success of an exploration well drilled in Istria XVIII offshore Perimeter (shallow water). The Marina 1 well encountered a new oil reservoir on the continental shelf of the Black Sea.
“The Black Sea is an important area for OMV Petrom, an area which continues to have potential for new discoveries. Currently, production from shallow waters accounts for 18% of the company’s hydrocarbons production in Romania. We have over 40 years of experience in exploration and production in the shallow waters of the Black Sea and we will continue to invest in the development of the offshore segment,” says Gabriel Selischi, member of the OMV Petrom Executive Board, responsible for Exploration and Production.
The exploration well Marina 1 was drilled 60 km from shore, in Istria XVIII Perimeter, to a depth of about 2,150 meters below the seabed. Water depth in the area is about 50 meters. First estimates from production tests show a potential production per well of 1,500 – 2,000 boe/day.
Cost of drilling the exploration well amounted to approx. EUR 19 mn. After the completion of tests, the Marina 1 well will be plugged with cement and abandoned.
In the following months, OMV Petrom will evaluate the results of the Marina 1 well and assess its commercial viability in order to develop and start production from the new reservoir. In order to exploit the reservoir, it is necessary to develop required infrastructure, including drilling of the production wells. Production from the Marina discovery – depending on the decision on its commercial viability – could start over the next 3-4 years. Investments necessary for reservoir development are estimated to above EUR 100 mn.
Exploration in the continental shelf of the Black Sea started in 1969. The first hydrocarbon discovery was made in 1980 and the offshore production started in 1987.
OMV, Austria’s largest listed industrial company, holds a 51.01% share in OMV Petrom. The Romanian state, via the Ministry of Economy, holds 20.64% of OMV Petrom shares, the Property Fund holds 18.99% and 9.36% is free float on the Bucharest Stock Exchange.