Petrom and Exxon Mobil continue explorations in the Black Sea

Newsroom 22/07/2011 | 11:32

Gas and oil producer Petrom in partnership with Exxon Mobil are expanding their exploration venture in the Black Sea, in the Neptun block, after the Romanian government has decided to extend the concession contract for explorations in this area. This new phase will allow Petrom and Exxon Mobil to install a deep exploration well in Romania’s offshore Neptun block by the end of 2011, improving the chances of discovering viable oil deposits.

“Entering a new stage in exploring the Neptun block is a significant step which confirms our commitment to reach full potential in Romania for exploration and production. We have to keep in mind that the Romanian section of deep-water in the Black Sea hasn’t been explored yet, and deep-water explorations pose a high investment risk. Generally, offshore exploration and development costs are higher than onshore operations,” said Johann Pleininger, member of the Petrom Directorate, responsible for exploration and production activities.

Petrom and ExxonMobil Exploration and Production Romania Ltd signed a concession contract in 2008, allowing Exxon Mobil to acquire a 50 percent stake in the Neptun Block. Since then, the two companies have cooperated on a 3D seismic acquisition and an evaluation program of the Neptun Block.

Petrom Group is the largest oil group in South East Europe. It posted a EUR 4.4 million turnover for 2010 and earnings of EUR 709 EBIT. OMV, an Austrian public company, owns 51,01 percent of Petrom shares. The Romanian government stake of 9.84 in Petrom is currently on public offer at RON 0.381 per share. (You can read more about the SPO here).