EUR 1 bn investment to maintain the current level of oil production in Romania

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There are necessary investments of EUR 1 billion per year to maintain the domestic oil production at the same level, Romanian Petroleum Exploration and Production Companies Association (ROPEPCA) notes on desprepetrol.ro.

“Without investments, Romania’s production of oil will run out in 12 years and natural gas production in nine years,” ROPEPCA said, considering that the output suffers a natural decline of 10 percent.

According to the quoted source, Romania has almost a third of all employees in oil and gas extraction industry in the EU, namely 25,600 of the total 77,900.

Romania has 13,000 active wells, well above the UK, which has 2300 wells, Denmark – 1500, Italy – 900 or Norway – 400. However, the output per well in Romania is the smallest of these countries, meaning 21 barrels per day compared to 2,350 barrels per day in Norway, 964 in Denmark, 363 in UK and 271 in Italy.

ROPEPCA representatives show in a study recently that an investment of EUR 1 billion in the onshore upstream sector generates a significant direct and indirect impact on GDP, on the number of jobs and the tax contributions to the state budget.

In addition, through the chain of interdependence, these effects are propagated in other economic sectors, generating also a considerable induced impact. Specifically, an investment of EUR 1 billion translates into a contribution of 3.2 billion in GDP and approximately 45,900 new jobs created or maintained in the economy, representing approximatively 15.000 jobs during the year of the investment and an average of 3000 new jobs yearly during the next 10 years.

ROPEPCA gathers 19 of the most active companies in the onshore industry: ADX Energy, Amromco, Aurelian Petroleum, Bankers Petroleum, East West Petroleum, Expert Petroleum, Fora Oil & Gas, Hunt Oil, Moesia Oil & Gas, NIS Petrol, Oilfield Exploration Business Solutions, OMV Petrom, Panfora Oil and Gas (MOL Group), Raffles Energy, Repsol, Sand Hill, Stratum Energy, Winstar Satu Mare/Serinius Energy, Zeta Petroleum.

ROPEPCA’s members in 2014 had conducted cummultative investment of EUR 1.5 billion, EUR 2.5 billillion cumulative contribution to the state budget. This economic impact had been generated by the oil and natural gas exploration and production sector as well as by the refining activities, conducted by ROPEPCA’s member with integrated activities.

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