OMV Petrom awarded oil and gas exploration block in the Black Sea, offshore Georgia

OMV Petrom has been selected as the winner of the open international tender held by the Ministry of Economy and Sustainable Development of Georgia for the Offshore Block II.

Peter Zeilinger, member of the Executive Board, responsible for Upstream, said:

‘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 licence in offshore Bulgaria. It is a natural continuation of our more than 40 years of experience in the Romanian Black Sea waters.’

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.

Background

An open international tender was announced by the State Agency of Oil and Gas on the 15^th January 2020 for a licence to conduct a search for oil and gas on the country’s Black Sea shelf, where currently no companies are operating.

On offer were Block II and Block III. The area of Licence Block II is 5,282 square kilometres, while the area of Licence Block III is 3,468 square kilometres.

OMV Petrom in the Black Sea

Exploration in the Romanian continental shelf of the Black Sea started in 1969. The first hydrocarbon discovery was in 1980, and the first production in the Black Sea started in 1987.

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.

Source: Energy-pedia