British oil company Petrofac could close down its activities in Romania after its profit dropped by almost USD 70 million (EUR 62 mln) in one year.

The company has been extracting oil in the last five years in Ticleni, Gorj county.

Around 1,000 people would remain jobless, if the company withdrew from Ticleni, reports local Digi24.

For the 1,400 families living there, oil extraction has been the only source of income in the last 50 years.

In 2010, Romanian oil & gas company OMV Petrom signed a contract with Petrofac for 15 years. The deal provided that Petrofac would continue extraction with its equipment and pay the workforce.

The village received annually about EUR 50,000 in social protection from the company.

editor@romania-insider.com