Romania's state-controlled natural gas company Romgaz (BVB: SNG) confirmed that it resumed drilling works at the deep reservoir discovered in 2016 at Caragele – where the company has already been extracting gas from a more accessible, low-depth deposit. 

"Romgaz is restarting, by its forces, the drilling program in the Caragele perimeter, after years of blockages," minister of energy Sebastian Burduja said while visiting the drilling site, Profit.ro reported.

The contractor for the new deposit found in 2016, the Romanian oil services company Foraj Sonde Craiova, has reached 1,500 depth already with the first well (76 Rosetti) but needs to reach over 5,000m depth where the gas was found. This is expected for June this year.

At the same time, exploration wells are used to identify the best places for more extraction wells.

"If all the data is confirmed, production will start in 24 months. The investment in this well alone exceeds RON 100 million (EUR 20 million), and the total investment at Caragele will exceed RON 1 billion (EUR 200 million) by 2027. I asked my colleagues at Romgaz to keep up the high pace of work. The management confirmed that important progress has been made, and they are committed to keeping pace," said minister Burduja.

Romgaz announced its biggest find in three decades at Caragele in 2017, saying it had an estimated accumulation of gas of roughly 25-27 billion cubic meters, which could ensure the country's entire consumption for up to three years.

iulian@romania-insider.com

(Photo source: Facebook/Romgaz)