OMV Petrom has signed an agreement with Expert Petroleum to enhance production at 13 small oil fields in Western Romania. The oil fields are described as “mature” and some have been exploited for over 40 years. Typically, the oil fields in the deal produce 2,400 BOE/D (barrels of oil equivalent per day).

“The results obtained, thanks to the production enhancement contracts concluded during the past years are encouraging. These reservoirs require a customized approach, high investments and modern technologies to improve the recovery of oil and gas,” said Petrom executive board member Johann Pleininger.

Under the new contract, Expert Petroleum will take over and finance operations at the 13 sites, with Petrom employees to be transferred to Expert Petroleum. OMV Petrom will remain the sole titleholder of the concession contracts and own the hydrocarbon production, the existing assets as well as the rights and obligations as defined by the Petroleum Act. Expert Petroleum will be paid a services fee, which will vary according to production levels achieved.

Austrian oil and gas company OMV owns a 51 percent stake in OMV Petrom. The group is active in exploration and production, gas and power as well as refining and marketing, with Romania and Austria as core countries. In 2011, turnover was over EUR 5.3 billion, while EBIT (earnings before interest and taxes) was EUR 1.16 billion. The rest of the shares in OMV Petrom are owned by the Romanian government and the Fundul Propriatatea (around 20 percent each), with the remainder free-floating on the Bucharest Stock Exchange.

Romanian oil and gas company Expert Petroleum specializes in enhancing production at older oil fields. The firm manages operations and carries out engineering and technical work in oil and gas production. The company also has contract with Hungarian oil and gas group Mol.

editor@romania-insider.com