OMV Petrom, the largest oil and gas producer in South-Eastern Europe, kicks off the implementation of the Suplacu de Barcau field redevelopment project (Romania’s northwest), requiring investments worth some 200 million euros over 2013-2015, the company announced in a release to Agerpres.
„We operate highly mature fields and in the past years we have been able to reduce the production decline rate to roughly 1 percent per year. We are currently covering approximately 40 percent of Romania’s oil and gas demand. Field redevelopment projects are and will remain essential to keeping production stable,” said OMV Petrom CEO Mariana Gheorghe.
Field redevelopment projects are aimed at unlocking additional hydrocarbons reserves. At present, the average reserves recovery rate for the 238 fields operated by the company is 25 percent for oil and around 49 percent for gas.
„Practically, with the help of new technologies, we will be able to extract more from fields that have been in exploitation for decades. We believe the potential of these mature fields is not yet exhausted,” said Gabriel Selischi, OMV Petrom Director of Domestic Assets.
Suplacu is a mature oil field that has been producing for over 50 years now, and whose daily production accounts for 10 percent of OMV Petrom’s total oil production in Romania.
The Suplacu field redevelopment project consists in the additional drilling of 105 wells, the implementation of top-notch technologies to increase the hydrocarbons recovery factor, the construction of a new gathering system and of a wastewater treatment plant, as well as the modernization of the gas evacuation system and of the air compression system.
OMV Petrom plans to carry out 6-8 field redevelopment projects by 2015. At the end of 2012, four field redevelopment projects were in the engineering phase and two projects – namely Suplacu and Oprisenesti – had put behind the stage of the final investment decision. The production on these six fields accounts for roughly 40 percent of OMV Petrom’s current production. The necessary investments for the implementation of the six projects, Suplacu included, will reach approximately 400 million euros, and additional reserves are estimated at 70 million boe.
Petrom is the largest oil and gas group in Southeastern Europe, with activities in the business segments of Exploration and Production, Gas and Power as well as Refining and Marketing. The group has consolidated its position in the Southeast European oil market following a far-reaching modernization and efficiency increase process that involved more than 8.8 billion euros in investments during the past eight years.
The Ministry of Economy, Commerce and Business Milieu holds 20.64 percent of the OMV Petrom stake, Proprietatea Fund SA holds 20.11 percent, the European Bank for Reconstruction and Development has 1.62 percent and 6.62 percent is free float on the Bucharest Stock Exchange.