Romania's Rompetrol starts drilling for OMV Petrom in USD 29 mln contract

Romania’s two major oil companies, Rompetrol and OMV Petrom, have started to collaborate. Rompetrol announced the company had begun drilling a test well in Prahova County. Rompetrol's investment in the well is set to reach USD 8.5 million. Gheorghe Georgescu, the new unit’s general manager, said the money was for high performance drilling equipment. He believes Rompetrol’s experience and expertise will allow them to expand, drilling on land and off-shore in the Black Sea.

The USD 29 million service contract between Rompetrol and OMV Petrom was signed this year, following a public bid. Rompetrol Rafinare, member of Rompetrol Group, reported a consolidated turnover of USD 3.7 billion in the first nine months of 2011, up 40 percent on the same period last year. OMV Petrom posted around a USD 5.7 billion turnover in 2010, while its pre-tax profit stood at around USD 922 million. The Romanian state owns a 20.64 percent stake in OMV Petrom. Austrian OMV is the majority shareholder in the company. Fondul Proprietatea owns a 20.11 percent stake, the European Bank for Reconstruction and Development some 2.03 percent; while 6.21 percent is free floating on the BSE. Liam Lever, liam@romania-insider.com