Saturday, July 4, 2020
Home Oil & Gas OMV Petrom confirms winning bid for Black Sea Offshore license in Georgia

OMV Petrom confirms winning bid for Black Sea Offshore license in Georgia

Romanian integrated oil company OMV Petrom continues to expand its operations in the Black Sea region after being selected as the winner of an open international tender organised by the Ministry of Economy and Sustainable Development of Georgia.

The final award will depend on the successful negotiation of a production sharing agreement. After this step, the perimeter could be officially leased and OMV Petrom could obtain the rights to carry out oil and gas exploration activities in the field.

The second offshore perimeter is covering a total area of 5,282 square kilometres. Before starting drilling works OMV Petrom will carry out two- and three-dimensional seismic exploration works.

“We continue our plans to expand our upstream activities in the Black Sea region,” commented Peter Zeilinger, Member of the Board of Directors responsible for Upstream Activity upon the company’s announcement.

“This is another important step, following the signing of a contract for entry into the Han Asparuh exploration license in Bulgaria’s offshore area,” underlined Mr Zeilinger. “It is a natural continuation of our experience of over 40 years in the Romanian waters of the Black Sea.”

Last December OMV Petrom signed a contract to acquire the stake from OMV Exploration & Production in the Han Asparuh exploration licence in Bulgaria. The transaction is expected to be completed by mid-2020.

Christina Verchere, CEO of OMV Petrom confirmed in May that the company also wants to continue the Neptun Deep project, which is estimated to contain natural gas resources of approximately 42 to 84 billion cubic metres (bcm), equivalent to three to six times the annual Romanian consumption. However, the final investment decision on the project is postponed to next year.

The Black Sea shelf is still rather untapped in Georgia, although a licensing round has been in preparation for a few years. Georgia relies heavily on imports to cover most of its natural gas and oil consumption.

“The entry of a new, important and well-known investor into Georgia confirms that the country’s business environment, including in the field of natural gas and oil extraction, is transparent, attractive and easy to understand,” said Natia Turnava, Minister of Economy of Georgia.

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