Romanian oil and gas company OMV Petrom (SNP), part of the Austrian group OMV, signed the Production Sharing Contract (PSC) for the offshore Block II in the exclusive economic zone of the Georgian Black Sea with Georgia's State Agency of Oil and Gas.

In June 2020, OMV Petrom won the international tender organized by Georgia's Ministry of Economy and Sustainable Development for offshore acreage.

The PSC provides for the exploration, development, and production of hydrocarbon resources in the offshore Block II, which covers a total area of 5,282 square kilometers with water depths between 400 and 2,000 meters.

OMV Petrom CEO Christina Verchere expressed confidence in the Black Sea's potential and her company's operational experience in the area.

"We take an important step in the eastern part of the Black Sea, in line with our strategy of looking for opportunities in the Black Sea region. We believe that the Black Sea has a high potential for the upstream sector. With our operating experience of over 40 years in the Romanian offshore area, we have a competitive advantage in evaluating the opportunities of this basin," Verchere said.

"The entry of such a large and reputable, strong company into Georgia right now, when our economy is experiencing challenges caused by the Covid-19 pandemic, is a very important message to foreign investors in general. The main thing that led to this company's entry in Georgia is our openness, the best business environment, political and macroeconomic stability, including the fact that our government is committed to the course of European reforms," said Georgian economy minister Natia Turnava.

As the perimeter's operator, OMV Petrom will establish a company in Georgia, proceed with geoscientific and environmental studies in 2021, and prepare a large offshore 3D seismic campaign in 2022, which will allow for a detailed evaluation of this block's potential.

OMV Petrom also owns 50% of the Neptun Deep offshore gas project in Romania's Black Sea section and a minority stake in a similar project in the Bulgarian section.

(Photo: Pixabay)

iulian@romania-insider.com