Bucharest-based integrated energy company OMV Petrom has discovered new crude oil and natural gas resources in the Oltenia and Muntenia regions of southern Romania, the company said Tuesday.
The discovery showed over 30 million barrels of oil equivalent (MMboe) in cumulative recoverable resources, equivalent to around three-quarters of OMV Petrom’s 2022 production, the company said in a news release. OMV Petrom invested $21.56 million (EUR 20 million) in the exploration drilling and testing of three wells from June 2022 to April 2023.
OMV Petrom identified crude oil resources totaling around 20 MMboe in the Verguleasa exploration area, Oltenia region, representing the company’s largest crude oil discovery in decades. The discovery is in the vicinity of another production area, and “will offer synergies by facilitating a faster start of production”, the company said.
In the Targoviște exploration block, OMV Petrom identified crude oil resources of around six MMboe. The company also identified natural gas resources of seven MMboe in the Targu jiu exploration block, which it said is equivalent to almost one-third of Romania’s natural gas production in 2022.
“The new discoveries will contribute to reducing the decline of our production and to the continuity of the supply of essential products for the economy”, OMV Petrom Executive Board Member Cristian Hubati said.
According to the release, OMV Petrom’s exploration strategy focuses on near-field opportunities located close to existing infrastructure, which “facilitates quick development, tie-ins and early production of newly found resources”.
Financing for Green Hydrogen Project
In an earlier news release, OMV Petrom said it signed a financing contract to build a facility for hydrogen production by water electrolysis at its Petrobrazi refinery through Romania’s National Plan for Recovery and Resilience.
Romania’s energy ministry will fund the project for a maximum of $42.05 million (EUR 39 million), and the total project investment is estimated at around $79.79 million (EUR 74 million), the release said. As a next step, the company will start the public tender for the purchase of an electrolyzer, and its final investment decision will be made in 2024, with project completion estimated in 2025.
The project targets a capacity of 20 MW for hydrogen production by water electrolysis, with the entire process being powered by renewable energy. OMV Petrom estimates the production of green hydrogen from the project to be over 2,600 tons per year, which will lead to the reduction of at least 70 percent of carbon dioxide emissions compared to conventional fuels.
"We believe that Romania has significant potential for the development of green energy projects, and the funds available to finance these projects open opportunities for the economic growth of the country”, OMV Petrom CEO Christina Verchere said. “We are committed to support the energy transition in Romania and in the region, with investments of around [$11.86 billion] EUR 11 billion until the end of this decade, out of which approximately 35 [percent] will support low and zero carbon projects.”
“We estimate that the hydrogen demand will increase significantly in Romania, especially in the next decade. We believe OMV Petrom has the opportunity to become the main integrated player on Romania’s hydrogen market”, OMV Petrom Executive Board Member Radu Caprau added.
According to the company website, OMV Petrom is the largest integrated energy company in southeastern Europe, with an annual hydrocarbon production of approximately 43 MMboe in 2022. The company has a refining capacity of 4.5 million tons annually and operates an 860-megawatt high-efficiency power plant. It has oil and gas production activities in Romania and is engaged in exploration activities in Romania, Bulgaria, and Georgia.
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