BUCHAREST, Romania – Petrom has confirmed it will enter a new exploration phase for the Neptun block in the Black Sea.
This follows the Romanian government’s decision to amend the concession agreement to extend the time allowed for exploration of the block. To maximize the chance of a commercially viable discovery, Petrom says, it is important to have sufficient time to thoroughly explore the block.
Petrom’s work program in partnership with ExxonMobil includes drilling of the first deepwater exploration well in the Romanian sector of the Black Sea by the end of this year or into 2012.
Johann Pleininger, responsible for Exploration and Production, said: "We have to take into account the fact that the Romanian deepwater area of the Black Sea is unexplored and deepwater exploration activities carry a high investment risk. Generally, deepwater exploration and development costs are many times higher than onshore."
Petrom and ExxonMobil Exploration and Production Romania signed a farm-out agreement in 2008 under which ExxonMobil acquired a 50% interest in the Neptun block. The two companies have since acquired 3D seismic.