Black Sea projects will double local gas production for about 20 years

The natural gas reserves in Romania’s Black Sea section may be around 200 billion cubic meters (bcm), in the perimeters where exploration drilling has taken place, which may allow Romania to double its current gas production for a period of 20 years, according to the general manager of the National Mineral Resources Agency – ANRM, Sorin Gal. He referred to the Black Sea perimeters currently explored by ExxonMobil and OMV Petrom, Russian group Lukoil and Romgaz, and Black Sea Oil and Gas, local Agerpres reported. “When they will function at full capacity, some 9-10 bcm of gas will come from the Black Sea each year, for a period of 20 years, which will bring royalties of EUR 2.8 billion to the state budget,” Gal said at the ZF Power Summit energy conference. Romania’s gas production may thus increase to some 20 bcm per year by 2025, from the current level of 11 bcm per year, which almost fully covers the domestic consumption. US group ExxonMobil and Romanian company OMV Petrom operate the biggest gas perimeter in the Black Sea, in which they have invested close to USD 2 billion so far. They will announce their decision on the commercial exploitation of the Black Sea gas by the end of this year and production should start in 2021-2022. They may produce some 6 bcm per year in the Neptun Deep perimeter, according to Sorin Gal. Black Sea Oil and Gas may start to extract gas from the Black Sea as early as next year, after investing some USD 200 million in the Midia and Pelican perimeters. The company, which is owned by US investment fund Carlyle, may produce about 1 bcm of gas per year. Russian group Lukoil, which has invested some USD 500 million in exploring the Trident perimeter, may also start production in about four or five years, the ANRM director estimates. editor@romania-insider.com