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OMV Petrom Makes Largest Crude Oil Discovery in Decades

June 13, 2023

Romanian oil and gas group OMV Petrom, majority-controlled by Austria's OMV, said on Tuesday it discovered new crude oil and natural gas deposits equal to about three quarters of its overall 2022 production.

The deposits are the largest crude oil discovery OMV Petrom has made in decades, it said, and were found in southern Romania holding over 30 million barrerls of oil equivalent (boe) of recoverable resources.

"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," said Cristian Hubati, a company board member responsible for exploration and production.

The discoveries were in three areas, with the largest in the Verguleasa area that is near existing production, part of a strategy of exploring near infrastructure already present.

The find comes as the company gears up for a final investment decision on a large Black Sea offshore gas project together with state owned gas producer Romgaz.

OMV Petrom has said it expected a decision around the middle of this year for the Neptun Deep gas project, estimated to cost around 4 billion euros ($4.32 billion). Plans to develop the project were previously delayed by taxes and regulations introduced without notice.

In May, Romanian lawmakers changed the law to enforce an additional tax on refined crude oil which applies to OMV Petrom.

OMV Petrom shares were up 0.65% on the day on the Bucharest Stock Exchange by 1135 GMT. 

($1 = 0.9266 euros)

(Reuters - Reporting by Luiza Ilie and Jason Hovet; Editing by Alan Charlish and)

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