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September 18, 2020
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OMV Petrom invests EUR 42 M in developing mature oil deposit

The redevelopment of the Independenta deposit unlocks supplementary oil reserves * The Independenta deposit currently covers 7 per cent of OMV Petrom’s oil production

 

OMV Petrom, the biggest oil and natural gas producer in South East Europe, continues its investment in the production of hydrocarbons in Romania. According to a company communiqué, the investments in Galati County are focusing on the redevelopment of the Independenta oil deposit. The project entails investments of approximately EUR 42 M in 2012-2016. The investment will unblock supplementary oil reserves.

Upstream Director Gabriel Selischi, member of OMV Petrom’s Board of Directors, stated: “Continuing the investments on the Upstream segment is essential in ensuring the production of oil and natural gas for Romania, against the backdrop in which we operate a portfolio of deposits with an average rate of natural decline of approximately 10 per cent annually. In 2015 however, the investments will reflect the deteriorating market conditions and the volatile environment. In what concerns the deposit redevelopment projects, they will be given priority and some of them will be redrafted.”

Independenta is a mature oil deposit whose production started in 1959. This is one of the most important oil deposits in OMV Petrom’s portfolio, ensuring in 2014 approximately 7 per cent of OMV Petrom’s oil production in Romania.

The redevelopment of this deposit seeks to boost Independenta’s oil production through drilling in previously undeveloped areas. The project consists of the drilling of 13 horizontal wells, the installation and modernization of some collection and measurement installations and the construction of a connecting pipeline between them. Four of the 13 wells have already been drilled.

The project entered the execution stage in 2014, a series of specific studies taking place prior to that. The investments made in 2012-2014 totalled approximately EUR 10 M.

At the end of 2014, OMV Petrom will have in its portfolio 12 deposit redevelopment projects in operational stages, projects that concern both oil and natural gas, onshore and offshore deposits. The recoverable supplementary reserves targeted by the 12 projects total approximately 130 million barrels of oil equivalent.

OMV Petrom is the biggest integrated oil group in South-East Europe, registering an annual oil and natural gas production of 66 million barrels of oil equivalent in 2014. The group has a refining capacity of 4.5 million tons per year, owns an 860-MW high-efficiency electricity plant and a 45-MW wind farm. On the distribution market, OMV Petrom had approximately 780 gas stations in Romania and in neighbouring countries at the end of 2014.

OMV, the largest industrial company listed in Austria, owns 51.01 per cent of OMV Petrom shares. The Energy Ministry owns 20.64 per cent of the shares, Fondul Proprietatea 18.99 per cent and 9.36 per cent of the shares are traded freely on the Bucharest Stock Exchange.

The investments in modernizing and consolidating OMV Petrom surpassed EUR 11 bln in the last 10 years. OMV Petrom’s annual direct and indirect contribution to Romania’s GDP stands at approximately 4.5 per cent.

Starting in 2007, OMV Petrom has integrated the principles of corporate responsibility in its business strategy. Since then, the company has earmarked over EUR 40 M for the development of local communities in Romania, focusing on environment protection, education, health and local development. “Tara lui Andrei” is its main community involvement platform.

 

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