BMI View: Field redevelopments will prop up oil and gas production to 2017 with longer-term growth driven by Black Sea projects. The refining sector continues to modernise but downsize in order to remain competitive.
|e/f = BMI estimate/forecast. Source: BMI, JODI, EIA|
|Crude, NGPL & other liquids prod, 000b/d||92.4||89.2||89.3||86.6||86.2||82.9||80.1|
|Dry natural gas production, bcm||9.5||9.6||9.5||9.4||9.2||9.0||9.4|
|Dry natural gas consumption, bcm||11.6||11.4||11.1||11.0||11.0||11.1||11.2|
|Refined products production & ethanol, 000b/d||160.9||208.1||209.1||210.2||209.8||209.3||208.5|
|Refined products consumption & ethanol, 000b/d||192.4||190.9||191.4||192.2||192.0||193.9||195.6|
The main trends and developments for Romania's oil and gas sector include:
OMV Petrom is conducting an extensive redevelopment of 12 oil and gas fields in order to mitigate production decline. The 60-year-old Tazlau field will see a USD38bn redevelopment over 2015.
OMV also committed USD42mn to well workovers and infill drilling on the Independenta oil field.
Romanian oil imports will increase driven by higher refining throughput in 2015 and 2016, and lower domestic production over the longer-term.
ExxonMobil and OMV are continuing the five-well drilling programme in the Neptun block. Following the completion of the Pelican South and Dolphin wells, the final Flamingo well is due to be drilled over H215.
The conclusion of the Neptun drilling programme should support a final investment decision on the Domino project in 2016. This will make Romania a net gas exporter from 2020.
Lukoil expects to drill two exploration wells in the Trident block in the Black Sea before the end of 2015.
Household gas prices increased between 5% and 8% from July 1 as Romania's gas market liberalisation continues on track. Full liberalisation will be complete by 2018.
China Peace Petroleum is reportedly interested in purchasing Lukoil's Poliesti refinery.
KMG International is outlining USD100mn, to carry out upgrade and repair work at the Petromidia refinery over 2015.The National Agency for Mineral Resources (ANRM) is lining up a new oil and gas tender offering 28 onshore blocks and eight offshore Black Sea blocks. Preparation for the documentation for the tender is in progress, though no timeframe has been outlined as to when it may take place.