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OMV :Shale gas drilling could turn Romania into an important supplier for Europe
Romania has an important position in Europe and in the region due to its natural gas reserves and shale gas reserves, and for this reason, they should be exploited, said OMV Executive President Gerhard Roiss, who attended the OMV European Media Summit.
'Shale gas extraction is the cheapest method to reduce carbon dioxide emissions. For this reason, the gas reserves are vital for Europe. If there are resources of shale gas, they must be exploited. Technologies must be developed, the US and China have already taken steps in this respect. Europe also must step up in this context. I believe that Romania has an important position in Europe and could play an important role in the future by supplying natural gas from the Black Sea. The same is valid as regards the shale gas.' Gerhard Roiss said.
Roiss also said the OMV's plans for Romania target the Black Sea hydrocarbon reserves, not the shale gas reserves. 'There are 15 countries that can exploit shale gas deposits. It is too soon to talk about Romania, let's focus on the Black Sea reserves in the near future,' the OMV official said. Roiss added that the Black Sea reserves will be designed first of all for the domestic market, then they will be exported to Europe, possibly via the Nabucco West pipeline.
'When it comes to the Black Sea natural gas deposits, there is the need for logistics and consumers, therefore the presence of a pipeline between Romania and the Western markets is very important, but the main priority is the domestic market. If there is an excess, we can export, after we satisfy the local demand. It is to early to quantify the Black Sea gas quantity, but we foresee a great potential for the region and for supplying Europe. The resources could be significant, and Romania could become an important supplier for the region, as it was a major producer in the past. OMV Petrom is ready to make huge investments in the region. It will take some years, but energy businesses are on the long run,' OMV head pointed out.
In addition, Gerhard Roiss said the expectations as regards the discovery of gas natural deposits in the Black Sea are also aimed at Bulgaria and Ukraine. 'If we had no expectations that we might discover hydrocarbons in Bulgaria and Ukraine, we would not invest in the explorations of Black Sea perimeters,' Roiss said.
On Feb. 22, Petrom and ExxonMobil Exploration and Production Romania Limited announced having made a potentially significant gas discovery in the Black Sea, offshore of Romania. The Domino-1 well, located in the Neptun Block, is Romania's first deep water well and lies 170 kilometers offshore in water approximately 930 meters deep. The exploration well encountered 70.7 meters of net gas pay, resulting in a preliminary estimate for the accumulation ranging from 1.5 to 3 trillion cubic feet, or 42 to 84 billion cubic meters, said OMV. The Neptun perimeter stretches over roughly 9,900 square kilometers in waters ranging between 50 and 1,700 metres deep.
Austria's OMV is Petrom majority shareholder with a stake of 51.01%; the Ministry of Economy holds 20.64% of the OMV Petrom stake, Proprietatea Fund has 20.11%, the EBRD - 2.03% and 6.21% is freely traded on the Bucharest Stock Exchange.
Shale gas. : Referenda to be held in Constanta County at the same time with the general election
Four referenda will be held in four localities of Constanta County on December 9, at the same time with the general election. Constanta County Prefect Eugen Bola says the Central Electoral Bureau (BEC) has already posted on its website information about the referenda in Mangalia, Costinesti and Limanu, where the locals will be asked about the opportunity for prospecting and exploiting shale gas. 'The councillors of these localities have voted for holding the referenda on December 9, at the same time with the parliamentary election, and their demarches are perfectly legal. The staff to be involved in the referenda at Costinesti, Limanu and Mangalia will be trained on December 2, at the Mangalia Culture Centre, with these referenda asking the locals whether or not to start exploring for shale gas,' says Bola.
Costinesti Mayor Traian Cristea said in his turn that 'following the example of Mangalia and Limanu, the inhabitants of Costinesti will be called to the polls on December 9, not just to elect their MPs, but also to have their word on the extraction of shale gas. The voters will have to answer yes or no to the question ‘Do you agree with the exploitation of shale gas by fracking at Costinesti?' The Local Council passed a decision about the referendum at the request of the local community, which in principle disagrees with the extraction of shale gas. Even if the extraction procedure were not that dangerous as some claim, the locals still disagree. Extracting the gas would mean derricks will have to be installed on the Black Sea coast, which they do not like,' said Cristea.
At Mihail Kogalniceanu, a referendum is scheduled for December 9 on the establishment of two localities. 'The referendum is held for two social groups created before 1989 in the vicinity of two big agri-business facilities, Sibisoara and Ceres, to be created villages,' Bola also said.