ExxonMobil and OMV Petrom will extract 6 billion cubic meters of gas per year from the Black Sea, ANRM official says

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ExxonMobil and OMV Petrom will extract 6 billion cubic meters of gas from the Neptun block in the Black Sea as of 2020-2021 and Romania will produce a total of 18-20 billion cubic meters of gas if all the projects are developed in the Black Sea, Sorin Gal, Director General with the National Agency for Mineral Resources (ANRM) has said on Tuesday.

At present, about 11 billion cubic meters of gas are extracted in Romania, and national consumption is still around that value, he said.

The Black Sea gas reserves amount to 200 billion cubic meters in the blocks where drilling was made, which would mean that the total output of a country could double for 20 years, Sorin Gal said.

“Exxon should express its intention to move on to the development phase of the project in November 2018,” Gal said.

The ANRM representative showed that the study for the assessment of resources and reserves in the Neptun block is about to be finalized and probably this year will be submitted for approval to the ANRM.

OMV Petrom and ExxonMobil Americans have successfully completed the second drilling campaign in the Black Sea Neptun block, where the two companies have invested a total of EUR 1.5 billion since 2008 hitherto. The first estimates show that the Neptune block could have between 42 and 84 billion cubic meters of natural gas.

Petrom already produces 1 billion cubic meters of gas per year in the Black Sea.

Another company, Black Sea Oil and Gas (BSOG), which has taken under lease the Midia and Pelican blocks in the Black Sea, will start production at the middle of next year.

“The company is already in the process of finalizing the project of the surface installation, and they have made an association with the EBRD to get additional funding. Sometime at the middle of 2019-2020 they will start to produce around one billion cubic meters per year,” Gal added.

A third important project in the Black Sea, in which Romgaz is also involved, is the Trident block, where there is a gas discovery, but which has not been declared commercial so far. The production could start at a one-two-year difference to the Neptune block.

Thus, Romania will reach a gas production of 18-20 billion cubic meters by 2025 if production starts in all of the Black Sea blocks, Sorin Gal concluded.

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