NIS seeks to progress Teremia North development on exclusive basis

Naftna Industrija Srbije (NIS), through subsidiary NIS Petrol, plans to proceed with development plans for Teremia North oil accumulation in western Romania on an exclusive basis, the company’s joint venture partner East West Petroleum Corp. said in a Feb. 26 release.

The companies partner on four onshore exploration blocks, Tria (EX-2), Balle Felix (EX-3), Periam (EX-7) and Biled (EX-8), covering 4,000 sq km in western Romania near Hungary and Serbia (OGJ, June 3, 2019, p. 31)

NIS Petrol, as operator, suspended all operational activities in March 2020 following a COVID-19-related national lockdown.

In second-half 2020, NIS evaluated development options for the Teremia North oil discovery, Ter-1001. During an operating committee meeting Feb. 8, 2021, NIS voted that there was a commercial discovery at Teremia North while East West Petroleum voted that there was not a commercial discovery.

The field economics, in East West Petroleum’s assessment, were marginal and do not merit the capital contributions required. Naftna Industrija Srbije, as a vertically integrated oil and gas producer, could support the development costs given the internal economies available, East West Petroleum continued.

It is uncertain whether the proposed development can be conducted as an exclusive operation, but the parties are discussing available options.

Elsewhere in the four shared blocks, NIS drilled five of the twelve exploration wells as part of its total farmin commitment to date. While operations remain suspended due to the pandemic, NIS Petrol “is committed to fulfilling the commitment work programs in all blocks, considering certain legislative changes, and being granted appropriate license extensions,” East West said.

NIS will fund 100% of the costs and fully carry East West through the commitment work programs in each of the blocks in return for earning an 85% interest in each license (OGJ, June 3, 2019 p. 31)