OMV Petrom announces investment in further re-development of mature oil fields in Romania

OMV Petrom is planning to spend EUR 90 million by year-end redeveloping the Oprisenesti oil field, located in Braila County, South-East Romania. The news follows an earlier announcement from the company of plans to carry out work on older oil fields, boosting their production and extending their lifespans. PMV Petrom's Oprisenesti field has been in production for almost 50 years and is thus considered a mature oil field. Its daily production accounts for around 2 percent of OMV Petrom's total oil production in Romania. The aim of the redevelopment is to unlock additional hydrocarbon reserves of 8 mn boe (equivalent to around 30 percent of OMV Petrom's annual oil production) by drilling new wells, re-pressurization, modernization of equipment and implementation of new techniques to certain mature fields. The Oprisenesti redevelopment includes drilling 30 wells, as well as using water injection and high pressure injection stations. OMV Petrom will also build a water treatment station, which, according to the company, will significantly reduce gas emissions and pollution sources. Back in March OMV Petrom announced that it would invest around EUR 400 million in the re-development of mature oil fields up until 2015. A scheme at Suplacu in North-Western Romania earlier entered the implementation phase and alone will carry a EUR 200 million investment over the next two years, according to an OMV Petrom statement published March 29. The Suplacu fields have also been exploited for 50 years and currently account for 10 percent of OMV Petrom’s daily Romanian oil production. As of the end of 2012, OMV Petrom exploited proved oil and gas reserves of approximately 775 mn boe in Romania and Kazakhstan, but with the vast majority in Romania, with a maximum annual refining capacity of 4.2 mn t. The company operates 800 filling stations under two brands, Petrom and OMV, in Romania, the Republic of Moldova, Bulgaria and Serbia. In 2012, the Group’s turnover was nearly EUR 5.9 billion and EBIT was over EUR 1.2 billion. OMV, holds a 51.01 percent share in OMV Petrom. Romania’s Ministry of Economy holds 20.64 percent of OMV Petrom shares, the Property Fund has 20.11 percent, the European Bank for Reconstruction and Development (EBRD) – 1.62 percent and 6.62 percent is free floating on the Bucharest Stock Exchange. editor@romania-insider.com photo source: sxc.hu