Page 5 - EurOil Week 12 2023

EurOil COMMENTARY EurOil

Romania gas production has fallen from some Three compressor stations at Podisor, Bibesti
from 34 bcm/year in the early 1980s to 8.5 bcm/ and Jupa will give it a capacity to deliver 4.4 bcm/
year in 2021, according to BP’s Statistical Review year to Hungary. The pipeline is to have reverse
2022, whereas domestic consumption was flow capability in order to ensure security of sup-
reported at 11.4 bcm for 2021. Like most of East- ply to Southeast Europe, enabling the region to
ern Europe, Romania has been dependent upon have multiple sources of supply.
imports of Russian gas to cover annual demand Neptun Deep lies in Romania’s deepwater
until Russia’s invasion of Ukraine a year brought section of the Black Sea and has been under-
EU imports of Russian gas to a halt. Produc- going exploration and appraisal since 2006.
tion at Neptun Deep should allow the country OMV Petrom and Romgaz are equal partners
to meet domestic needs and export gas to other in the block, which covers some 7,500 sq kms in
EU-member states. water depths of 100 to 1,700 meters. In March
Gas from Neptun Deep is due to land near 2022, Romgaz bought ExxonMobil Exploration
Tuzla from where Phase 1 of the new pipeline and Production Romania’s 50% share in the
will carry up to 12 bcm/year 32 kms to Amza- license for $1.06bn and later changed to name to
cea. From there, Phase 2 will continue for 276 Romgaz Black Sea Ltd.
kms with a 9 bcm/year capacity to Posidor and Around $1.5bn has been invested in explo-
connect with the existing T1 international gas ration work in the block over the years and the
transmission pipeline, or BRUA, which extends partners are due to make a final investment deci-
to Recas near Timisoara. sion (FID) on development later this year with a
Posidor is also a connection point for natural view to starting gas production in 2025-27. Two
gas entering Romania from Bulgaria. Late last 3D seismic surveys have been acquired of the
year, Bulgaria and Greece connected their gas area and two drilling campaigns have resulted in
transmission systems with the opening of the eight exploration and appraisal wells. The Dom-
Interconnector-Greece-Bulgaria (IGB) pipeline, ino-1 well, the first deep water well drilled off-
which links up with the Southern Gas Corridor shore Romania in 2012, confirmed the presence
from Azerbaijan and LNG terminals in Greece. of a natural gas reservoir, the size of which has
Phase 1 of BRUA was completed at the end been estimated at 1.5-3.0 tcf.
of 2020 pipeline, at a cost of €423mn and with a “We believe the Black Sea holds a significant
capacity of 1.75 bcm/year. Phase 2 of the project potential for natural gas and Neptun Deep is a
has been authorized and will involve pipeline strategic project for OMV Petrom and for Roma-
construction from Recas to the location of the nia,” Christina Verchere, CEO of OMV Petrom
Horia gas metering/compression station near was quoted by SeeNews as saying. “It is at the
the Hungarian border. Total cost of the Roma- core or our Strategy 2030 and will play an essen-
nian section is estimated at around €479mn. tial role for Romania’s energy security.” ™

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