Romania

OMV Petrom - the largest energy company in Southeast Europe

OMV Petrom is the largest integrated energy Company in Southeast Europe. The Company is active along the entire energy value chain: from exploration and production of oil and gas, to refining and fuels distribution, and further on to power generation and marketing of gas and power.

In 2004 OMV Aktiengesellschaft  became the majority shareholder with 51.2% of the Petrom share capital, following the privatization and subsequent capital increase of Petrom S.A. The Exploration and Production (E&P) Division had more than 26,000 employees operating in three regions with approx. 300 production licenses. Until today the organization went through various reorganization programs leading to the current structure of five onshore, one shallow offshore Assets and three Production Enhancement Contracts (PEC), employing around 6,000 staff. Post privatization OMV Petrom invested in E&P operations in Romania and Kazakhstan more than EUR 12 bn. This included drilling of more than 2,200 new wells and sidetracks, as well as modernization and automation of the existing infrastructure.

Exploration 

OMV Petrom is currently engaged in exploration activities in ten exploration licenses in Romania, covering over 26,000 km²; including two offshore licenses. In March 2022, OMV Petrom finalized the acquisition of the Spineni 3D seismic survey in the exploration block X Craiova. In June 2022, the exploration well 1 Verguleasa (X Craiova) discovered oil in the Meotian formation. In October 2022, the exploration well 3000 Stan Poetaș (VIII Urziceni block) operated by Hunt Oil was finalized. In November 2022, the exploration well 1 Ocnița North (VI Târgoviște block) discovered oil in three different formations (Helvetian, Meotian and Oligocene). The well will be tested in 2023.

Operations 

Currently OMV Petrom E&P operates in Romania 150 commercial fields, including 20 fields under Production Enhancement Contracts. The production infrastructure includes approx. 6,000 production wells, around 10,000 km of pipelines and more than 900 facilities. Significant progress was achieved since privatization in terms of equipment integrity and reliability by reducing the number of well interventions to around 4,200 per annum leading to an well Mean Time Between Failures (MTBF) of 841 days. In 2022, OMV Petrom production in Romania amounted to a daily average of 119.1 kboe/d, with 48% oil and 52% gas. OMV Petrom produces around 15% of its domestic production from the shallow water of the Black Sea from Istria block. Production in the Black Sea began more than 40 years ago and today six fixed offshore platforms are operated at 80 km from shore. In 2019 the decommissioning of the Gloria production platform and removal from its production location in the Black Sea was completed. This marked the end of a 40 years history as drilling and production platform in the Romanian Black Sea and the first offshore decommissioning operation in Romania. OMV Petrom invested around 200 mn euro between 2010-2019 for the development of a centralized gas treatment hub serving domestic gas production in Hurezani - Southeast Romania. The project increases energy efficiency and contributes significantly to the reduction of greenhouse gas emission, while ensuring safe operations for the infrastructure on the long-term.

Neptun Deep

Neptun Deep represents the deepwater sector of the XIX Neptun block in the Romanian Black Sea, where OMV Petrom is conducting activities through a joint venture with ExxonMobil. In 2009 and 2013 3D seismic acquisition programs covering the entire area of the block were completed. The first exploration drilling campaign in Neptun Deep led to the Domino-1 discovery in 2012. The initial resources amounted to 21 to 42 bn. bn m³ of natural gas (OMV Petrom share). Between 2014 and January 2016, a second exploration drilling campaign was conducted, during which seven wells were drilled. The majority of these wells encountered gas. In addition, a successful well test of the Domino structure was performed. The investments made since 2008 were in excess of USD 1.5 bn (thereof 50% OMV Petrom).
As of August 2022, OMV Petrom became operator of the Neptun Deep offshore license block, after the takeover by Romgaz Black Sea Limited of the 50% stake in the license previously held by ExxonMobil. The declaration of commercial discovery (DoC) was submitted to the National Agency for Mineral Resources in December 2022, this represents an intermediate step towards the final investment decision, planned for mid-2023. On June 21, 2023, OMV Petrom and Romgaz announced the decision to develop Neptun Deep, the largest natural gas project in the Romanian Black Sea. 

Reserves Replacement Rate (RRR)

As of December 31, 2022, the total proved oil and gas reserves in Romania amounted to 380 mn boe, while the proved and probable oil and gas reserves increased to 741 mn boe. For the single year 2022, Romania RRR was 10%.

Sustainability and CSR

Since 2007, OMV Petrom has included corporate responsibility principles into its business strategy. Between 2007 and 2022, the Company has allocated approx. EUR 83 120 mn to develop communities in Romania, focusing on environmental protection, education, and health and local development. This also includes the EUR 10 mn sponsorship to the “Dăruiește Viață” Association project for the construction of the first Pediatric Oncology and Radiotherapy Hospital in Romania. OMV Petrom is currently involved in various community engagement projects benefiting Romanian local communities, where E&P operations are taking place (e.g: the contribution of EUR 3 mn from 2022  to the modernization of Ploiesti County Emergency Hospital „Dr. Constantin Andreoiu” continued in 2023 with other EUR 2 mn). 

Technology and innovation 

Operating fields which have a long production history comes with challenges related to declining production and well productivity. OMV Petrom has expertise in using improved and enhanced recovery technology to maximize field recovery rates while remaining competitive from a cost perspective. After the first promising results of the viscous saltwater injection pilot project in Independența, a full field application project in Vata field has started.  OMV Petrom E&P operations use high-tech solutions like digital oilfields and 3D visualization of reservoirs to optimize operations, explore business opportunities and develop new business models.

Facts/Milestones
 

• 1976 First exploration drilling in the Black Sea
• 1976 Highest oil production in Romania's history: 15.1 mn t/a
• 1987 First crude oil production from shallow offshore (Black Sea)
• 1997 National Oil Company Petrom S.A. founded
• 2001 Petrom shares are listed on the Bucharest Stock Exchange
• 2004 Petrom privatization – OMV acquires 33.34% of Petrom share capital, which increases to 51% following a capital increase
• 2008 Petrom enters a 50%/50% partnership with ExxonMobil (operator) for the exploration of Neptun Deep
• 2011 Totea Deep field discovery in Oltenia region
• 2011-2012 First deepwater exploration drilling in the Black Sea
• 2012 The Domino-1 exploration well encounters natural gas in Neptun Deep
• 2013 OMV Petrom and ExxonMobil successfully complete the largest 3D seismic in the Romanian waters of the Black Sea
• 2014 OMV Petrom in partnership with Hunt Oil discovers Padina field in the south of Buzău County
• 2016 OMV Petrom celebrated 40 years of offshore activities in the Romanian part of the Black Sea
• 2018 First multilateral horizontal offshore well in the Black Sea
• 2019 First offshore decommissioning project in the Black Sea (Gloria jack-up rig)
• 2019 Hurezani centralized gas treatment hub completed
• 2021 OMV Petrom divests production assets in Kazakhstan
• 2022 OMV Petrom became operator of the Neptun Deep offshore license block
• 2023 OMV Petrom announced the decision to develop Neptun Deep, together with the partner Romgaz