Exploration and hydrocarbon production activities are Petrom’s main profit driver, as well as the company’s main focus of investment since privatization in 2004. Investment on this segment cumulates more than EUR4.4 billion so far.
Should negotiations fail, Petrom’s activity may be prevented from identifying new oil and gas reserves locally, according to a report by Austrian OMV, Petrom’s owner. The state, then, regains possession of the blocks.
“Petrom has oil contracts signed over a 30-year period, until 2030, with these agreements including exploration, development and exploitation stages. The exploration stage for certain perimeters expires in September. Negotiations to extend the term for this stage should be completed by September 12. Talks are held for each perimeter,” said Alexandru Patruti, president of the National Agency for Mineral Resources (ANRM).
Petrom shows that it has observed the terms of the contract and not extending the timeframe by three years would mean a waste of time, until other investors come in these areas.
If the exploration term is extended, Petrom pledges to also study the unconventional gas potential, with the possibility of attracting international partners.
(English version by Catalina Apostoiu)