OMV Petrom (BVB ticker: SNP), the largest oil and gas producer in South-Eastern Europe found a new oil reservoir on the continental shelf of the Black Sea, according to a company announcement. This discovery comes after exploration drills by Petrom in Istria XVIII offshore shallow water perimeter.

“The Black Sea is an important area for OMV Petrom, an area which continues to have potential for new discoveries. Currently, production from shallow waters accounts for 18 percent of the company’s hydrocarbons production in Romania”, said Gabriel Selischi, member of the OMV Petrom Executive Board, responsible for Exploration and Production.

The exploration well Marina 1 was drilled 60 km from shore, in Istria XVIII Perimeter, to a depth of about 2,150 meters below the seabed. Water depth in the area is about 50 meters.

First estimates from production tests show a potential production per well of 1,500 – 2,000 boe per day, which is about 1 percent of the company’s current production of 182,000 boe per day.

Cost of drilling the exploration well amounted to approximately EUR 19 million. After the completion of tests, the Marina 1 well will be plugged with cement and abandoned.

In the following months, OMV Petrom will evaluate the results of the Marina 1 well and assess its commercial viability in order to develop and start production from the new reservoir. In order to exploit the reservoir, it is necessary to develop required infrastructure, including drilling of the production wells.

Production from the Marina discovery – depending on the decision on its commercial viability – could start over the next 3-4 years. Investments necessary for reservoir development are estimated to more than EUR 100 million.

Andrei Chirileasa, andrei@romania-insider.com