Romania's oil and gas industry is beginning to turn some heads these days, with an international energy conference scheduled for Sept. 30-Oct. 2 and new production commencing offshore.
With a host of prominent speakers lined up, next week's Black Sea Energy & Economic Forum looks to be a major focal point for high-level discussion about the region and its place on the world energy map.
Among the initial speakers are Romanian President Traian Basescu, US Sen. Chuck Hagel, Chairman of the Atlantic Council, Ambassador Richard Morningstar, US Special Envoy for Eurasian Energy, and Eni SPA Chief Executive Paolo Scaroni.
It looks to be an informative occasion especially given the hopes for the region's oil and gas, to say nothing of the politics which, in the past, have sometimes hindered their development and export to world markets.
SOCAR interested
Other interests are meanwhile eyeing Romania, including the State Oil Co. of the Azerbaijan Republic (Socar), which continues to show interest in refining in the country. "This issue is on the agenda, and it is attractive enough," said one Socar official.
In Romania, all refineries are private, he said, so negotiations can be conducted only with private entrepreneurs. "This requires a long period of negotiations and evaluation," the official said.
As those negotiations get under way—or not—Romania's largest oil company Petrom started production at its recently drilled Delta 6 and Lebada Vest wells on Histria XVIII block in the Black Sea.
According to Petrom, the production of the two new wells together accounts for 10% of Petrom's daily offshore production.
"This recent production start-up on Delta field is a great achievement, taking into consideration the technical difficulties we have experienced during drilling Delta 6," said Johann Pleininger, Petrom executive board member responsible for exploration and production.
Extended reach
"As the concept of extended reach drilling has proved to be successful, Delta 6 might become our most valuable well in Romania," Pleininger said.
Petrom is currently operating five producing commercial fields: Lebada Est, Lebada Vest, Sinoe, Pescaru, and Delta. The country's offshore production stands at 32,000 boe/d or about 18% of Petrom's domestic production.
Word of the new offshore production will be welcomed in the country, especially given recent reports that Romania's energy output fell by 7.7% on the year in the first 7 months of 2009, while imports decreased by an annual 39.3%.
According to the National Statistics Institute, Romania's energy production totaled 13.277 million tonnes of oil equivalent (toe), while imports reached 5.960 million toe through July.
Romania saw a 6.7% decrease in its production of oil to 2.413 million toe.