Romania’s integrated oil and gas company, OMV Petrom announced the signing of the Production Sharing Contract (PSC) for the offshore Block II in the exclusive economic zone of the Georgian Black Sea. The Romanian operator is hoping to become a key player in the Black Sea offshore developments in the long term.
OMV Petrom won in June 2020 the international tender organised by the Ministry of Economy and Sustainable Development of Georgia for offshore acreage.
The PSC provides for the exploration, development and production of hydrocarbon resources in offshore Block II. It covers a total area of 5,282 square kilometres and the water depth varies between 400 and 2,000 metres.
“By signing the PSC for the offshore exploration Block II in Georgia, we take an important step in the eastern part of the Black Sea, in line with our strategy of looking for opportunities in the Black Sea region,” said Christina Verchere, CEO of OMV Petrom.
As an operator, OMV Petrom will establish an operating company in Georgia, proceed with geoscientific and environmental studies in 2021 and prepare for a large offshore 3D seismic campaign in 2022 to evaluate the block’s potential.
“We believe that the Black Sea has a high potential for the upstream sector and with our operating experience of over 40 years in the Romanian offshore area we have a competitive advantage in evaluating the opportunities of this basin,” highlighted Mrs Verchere.
In Romania, OMV Petrom currently has exploration, development and production operations in the shallow waters (Istria block) and exploration operations in partnership with ExxonMobil in deepwater areas (Neptun Deep) of Romania.
Other operations in the Black sea include a joint venture with Total in the Han Asparuh Block in Bulgaria. The total exploration acreage of OMV Petrom’s interests in Romania and Bulgaria amounts to 26,000 square kilometres.
At the end of last year, OMV Petrom has sold its onshore oilfields in Kazakhstan to focus on its portfolio in the Black Sea region. In February, the company signed a memorandum of understanding with Ukraine’s Naftogaz to implement joint gas exploration and production projects in the gas fields of the Ukrainian Black Sea section.