Spanish energy giant invests almost EUR 15 M in oil exploration in Romania

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Spain’s largest oil company Repsol invests EUR 14.6 million in the companies in Romania which operates the four oil exploration blocks, together with OMV Petrom, according to the Trade Registry data available for February.

The biggest investment, EUR 6.35 million, is for Repsol Targoviste SRL, followed by Repsol Baicoi SRL with EUR 3.39 million and Repsol Targu Jiu SRL – EUR 2.10 million.

“Spain’s Repsol is among the few who still invest in oil exploration in Romania,” Artur Stratan, President of Romanian Petroleum Exploration and Production Companies Association (ROPEPCA) said, which also includes Repsol.

According to him, the exploration contracts of the four blocks will expire this year or next year, and depending on what they find, Repsol and OMV Petrom could extend the exploration phase.

On the other hand, the perimeters could be abandoned, if large deposits will not be discovered. “They will not stay in Romania for small discoveries,” Stratan noted.

ROPEPCA President adds that oil exploration sector in Romania has no encouraging prospects for development because of the new fiscal framework that could ward off investors. “Investments in exploitation have a high risk. And when it’s an unattractive fiscal framework and the oil price is where it is, the development prospects are not encouraging,” Artur Stratan concluded.

Repsol signed in February 2013 a farm-out contract with OMV Petrom (contract to transfer derived rights from the oil concession agreements), the Spanish company buying thus a 49 percent equity stake for exploring onshore areas at Baicoi V, Targoviste, Pitesti XII and Targu Jiu XIII for depths beyond 2,500 – 3,000 metres.

The partnership was concluded in order to evaluate the hydrocarbons existing potential of the four perimeters. The two big companies are to evaluate together the data within the seismic programme carried out to determine the opportunities for exploration drillings. When signing the contract, OMV and Repsol estimated the investments for the exploration drillings in the above mentioned areas could amount to EUR 50 million. The Austrians have also exploration and/or production partnerships with Repsol in Libya and Bulgaria.

 

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