The block will be formally awarded only if negotiation of a Production Sharing Contract is successfully finalized. If so, OMV Petrom will obtain the rights to conduct oil and gas exploration activities in Block II, located on the shelf and within the economic zone of the Georgian offshore Black Sea.
“We continue our plans to expand our upstream activities in the Black Sea region. This is another milestone, after signing a contract to enter the Han Asparuh exploration license in offshore Bulgaria. It is a natural continuation of our more than 40 years of experience in the Romanian Black Sea waters,” said Peter Zeilinger, member of the Executive Board, responsible for Upstream.
OMV Petrom is also set to buy OMV’s Bulgarian subsidiary under an agreement signed in December 2019, giving OMV Petrom the share owned by OMV in the consortium holding the license to the Han Asparuh block offshore Bulgaria. The deal is expected to close mid-2020.
Currently, OMV Petrom has exploration, development and production operations in the shallow waters (Istria block) and exploration activities in partnership with ExxonMobil in deep-water areas (Neptun Deep).
Oil and gas production in shallow waters (Istria block) amounts to approximately 25,000 boe/day. In 2019, it accounted for around 17% of the Group’s domestic production.
OMV Petrom, majority owned by Austria’s OMV, is the largest energy company in South-Eastern Europe, with an annual group hydrocarbon production of 55.4 million boe in 2019. The group has a refining capacity of 4.5 million tons annually and operates an 860 MW high efficiency power plant. The group is present on the oil products retail market in Romania and neighboring countries through 800 filling stations, at the end of March 2020, under two brands – OMV and Petrom.