Naftogaz seeks cooperation with OMV Petrom for gas exploration and production

Feb 15, 2021 | Category: Official
Naftogaz seeks cooperation with OMV Petrom for gas exploration and production

Naftogaz Group signed a memorandum of understanding for the cooperation with the leading integrated energy company in South-Eastern Europe – OMV Petrom, headquartered in Romania. Naftogaz and OMV Petrom will seek to establish joint gas exploration and production projects in Ukraine.

“During 2020 Naftogaz worked to create and open new opportunities for exploration and development of new gas fields in Ukraine. With the award of substantial license potential in the Offshore Black Sea, Yuzivska and remaining potential in West Ukraine, Naftogaz now is accelerating its investment plans. Part of our strategy is to bring on board international, experienced partners to co-invest with Naftogaz. Attracting international investors is an important contributor to achieve gas independence for Ukraine by 2030. We believe OMV Petrom is a valuable and reputable partner who brings investment capacity, expertise and relevant experience in the region. The Company discovered the promising Neptun field in the Black Sea, has experience and knowhow in offshore drilling and has a proven record of successfully and efficiently exploiting the onshore resources of the Carpathian region in Romania, which share a common geological history with the Carpathian region in Ukraine. We see great potential for collaboration in those areas and look forward to establishing our cooperation concretely in the near future,” Otto Waterlander, Chief Operating Officer of Naftogaz Group, said.

Naftogaz and OMV Petrom will start analysing opportunities for cooperation in the prospective offshore blocks in the Ukrainian Black Sea. According to the government's resolution, Naftogaz has already applied for 36 special permits for the exploration of these blocks.

“Our strategy is to expand our activities in the Black Sea region. Ukraine is a natural step for assessing opportunities in the area, as the country hosts one of the largest potentials for natural gas production in Europe. We are pleased to start exploring ways of working together with Naftogaz and are focused on efficient, mutually beneficial cooperation to advance some of these opportunities”, Christopher Veit, Member of the OMV Petrom Executive Board responsible for Upstream, summarized.

As reported, in 2020 Naftogaz developed and launched a new Strategy for the resource base development, which aims for doubling the Company's reserves. Exploration and development of the Black Sea areas, tight gas deposits, Yuzivska area, and promising areas in the Western region are among the strategic projects.

About Naftogaz

Naftogaz is Ukraine’s national oil and gas company, one of the major players in the CEE gas market. The group provides development and exploration of oil and gas fields. The Company offers drilling, gas and oil transport and storage, and supply of natural gas and LPG to consumers.

In 2020, Naftogaz produced 13.45 bcm of commercial gas. This is 73% of all natural gas production in Ukraine.

About OMV Petrom

OMV Petrom is the largest integrated energy company in South-Eastern Europe, with an annual Group hydrocarbon production of 53 million boe in 2020. The Group has a refining capacity of 4.5 million tons annually and operates an 860 MW high efficiency power plant. The Group is present on the oil products retail market in Romania and neighboring countries through 793 filling stations, at the end 2020, under two brands – OMV and Petrom.