OMV Committed to Natural Gas Investments in Romania and Black Sea Region
OMV is prepared to undertake investments to ensure that its OMV Petrom unit remains the most important natural gas exporter in Romania and the Black Sea region.
Speaking with the press, the president of the CEO of Austrian oil and gas group, Gerhard Roiss, discussed plans for the Romanian natural gas market.
“We have high expectations regarding the resources from the Neptun block (in the Black Sea), and, as well, from the leases in Ukraine and Bulgaria, otherwise we would not have invested there” commented Roiss.
In February, Petrom and ExxonMobil Exploration and Production Romania announced an important gas discovery in the Black Sea. Preliminary assessments placed the resource at 42 – 48 billions cubic meters, which is equivalent to 3 to 6 times the yearly consumption in Romania. The Austrian group has acquired licenses for two more areas in the Ukrainian and Bulgarian territorial waters, both located near Neptun block.
Commercial production in the Black Sea is estimated for the end of the decade and the exploitation of the deposit could ensure the energetic independence of Romania with respect to the natural gas. Asked if OMV will export the gas that will be produced in the areas from the Black sea, Roiss said that the group will prioritise Romanian demand..
“We are a responsible company established in Romania and the act accordingly to the social needs. We will export gas only after satisfying the necessity in Romania.” declared Roiss.
Roiss deferred on the topic of the talks with the government in Bucharest regarding the possible increases of the royalties for oil and gas, as well as on the intention of the executive to establish a tax on the special incomes of the companies in the gas and electricity field.
“I will not comment; it is not my style” said Roiss.
The royalties for gas and oil, now between 3.5% and 13% of production were established in 2004 by the privatization contract of Petrom with OMV and are valid until December 2014.
Beginning in January 2013, the government intends to impose a tax on the extraordinary incomes of the companies acting on the gas and electricity market and, in the middle of next year, will introduce a new regulation and taxation regime for the companies in the oil and natural gas field.
In addition to prospects in the Black Sea, one of the most promising plays for Petrom is Oltenia and the Totea gas and condensates field. The Toteq gas field began production in 2011 with total proven reserves of the Toteq gas field are around 53.6 billion cubic feet and production is centered around 16.9 million cubic feet/day.
Silviu Molnar