Romanian Romgaz gives up operations in Poland after EUR 4.7 mln spent

Romanian gas producer Romgaz has invested EUR 4.7 million in exploration operations carried out in Poland, and it now wants to quit the operations, according to a company’s document. The document will be discussed in the General Shareholders’ Meeting on January 27, 2016. The probability of commercial success within these perimeters has dropped from 11.8% to 10.6%, according to the Business Development department within Romgaz. The oil prices have also dropped. Romgaz has a share of 30% in two exploration concessions in Poland. The gas producer made in 2014 a provision of EUR 4.7 million for these projects. Some EUR 3.9 million of the total project represent the actual work, whereas EUR 781,000 represent the amount paid to enter the partnership in 2008. Romgaz needs to constitute another provision of EUR 0.2 million to cover the costs of abandoning the operations, the value of the reports that have to be submitted to the authorities, and other legal formalities. Between June 2013 and October 2014, Romgaz wanted to sell a part of its stake in these perimeters to the US company Aspect - Horizon, but the deal has failed. editor@romania-insider.com