OMV Petrom announced that it has signed on 15 years deal to increase production in many fields with Petrofac, a world leader in services for the oil industry. Under the partnership, Petrofac will operate these fields to maximize production and improve operational efficiency. To this end, Petrofac will provide expertise and technology needed and financial and human resources. Petrom will oversee operations and Petrofac will pay for the amount of oil produced, including an increased rate based on the additional production. The contract will take effect immediately.
Mr Mariana Gheorghe CEO of Petrom said that "To reach our potential exploration and production segment, given the complexity of deposits mature and operation of our portfolio in Romania, we will focus on re developing a number of about six to eight major deposits 2015. In parallel, to maximize production on other mature fields, we decided to initiate partnerships with reputable international companies that have achieved remarkable results in this area. Partnership with Petrofac, a world leader in services industry oil is one example. Through this partnership, we rely on obtaining the best results under risk sharing, to reduce costs and increase production."
The contract envisages the operation of re development of oil deposits in the nine onshore oil fields, Ţicleni area in southwestern Romania. These are mature fields, which were exploited in the past 60 years. Currently nine fields together produce some 4,500 barrel of oil equivalent per day or about 2.5% of total domestic production of Petrom.
Mr Johann Pleininger member of Petrom's Executive Board, responsible for Exploration and Production said that "Most of our deposits are mature, very large tanks and diversity requires not only high investment but also an approach that may vary from one tank to another cutting edge technologies and international experience. Partnership with Petrofac will enhance operating efficiency of operations of our fields."
In the first 5 years, Petrofac will provide a cumulative increase in output by at least 50% for deposits covered, compared to current production decline. Production operations and related services, and employees involved in these activities will be transferred from Petrofac during the contract. Petrom remains the concession contracts, production of hydrocarbons of existing equipment and the rights and obligations defined by the Law of Petroleum.
Mr Ayman Asfari, group chief executive of Petrofac, said that "I am delighted to announce the conclusion of this contract represents one of the great achievements of Petrofac Production Solutions since watching such opportunities more time. We believe that this innovative approach will allow us to adapt our customer needs and generate additional value through investment and by building our operations, the management of drilling, production engineering, modern equipment and skills training. This agreement gives us the opportunity to We develop a portfolio of excellence on market growth in production has the potential to become an area with significant growth over the medium term."
