OMV Petrom signs contract for block offshore Georgia

Romanian oil and gas company OMV Petrom has signed the production sharing contract (PSC) for the offshore Block II in the exclusive economic zone of the Georgian Black Sea.

OMV Petrom won the international tender organized by the Ministry of Economy and Sustainable Development of Georgia for the offshore acreage in June 2020.

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.

Christina Verchere, CEO of OMV Petrom, said: “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.

“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”.

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, which will allow for a detailed evaluation of this block’s potential.

Currently, OMV Petrom has exploration, development, and production operations in the Istria shallow-water block and exploration operations in partnership with ExxonMobil in the deepwater Neptun area.

Oil and natural gas production in shallow waters amounts to approximately 24,000 boe/day. In 2020, it accounted for 16.4 per cent of the Group’s domestic production.

As for Istria, OMV Petrom made an investment of $38.6 million for a new drilling campaign on the block in January. The first drilling operations started at the end of December 2020 and the drilling of the second well was scheduled for the start of 2021.

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.

Also, at the end of 2020, OMV Petrom sold its onshore oilfields in Kazakhstan to focus on its portfolio in the Black Sea region.